Warning for South Africans travelling overseas

Nedbank urged South Africans visiting another country to invest in travel insurance, since this can protect them against risks like trip cancellations, medical emergencies, and lost baggage that could lead to major financial losses abroad.

Just like it is a good idea to have health insurance and cover on possession in South Africa, Nedbank told Daily Investor that travel insurance is also critical when visiting a foreign country.

“If disaster strikes when you are far from home, with your whole life wrapped up in a suitcase and a few electronic devices, it is even more important that you have access to help that gets you out of a jam,” the bank said.

“International travel adds a few twists to the general risks you need to insure against at home. Fire or theft could deprive you of vital possessions or documents – but in a remote location, where they are harder to replace.”

Nedbank added that a natural disaster might force travellers to flee accommodation they have already paid for.

“With no family or friends to take you in as they would at home, you would be faced with the added expense of finding alternative lodgings,” it said.

“Illness or injury could leave you in need of private medical care. Without insurance, the cost of a medical emergency could blow your holiday budget overnight.”

According to the bank, there are four types of travel insurance South Africans should consider before taking their next business trip or holiday abroad.

The first is trip cancellation or interruption cover, an insurance policy that refunds the non-refundable and unused portion of travel costs if the policyholder needs to cancel their trip due to an unforeseen event.

“Imagine this – you are enjoying a sun-drenched family holiday on a tropical island when you get warned that a tropical storm is heading your way,” Nedbank said.

“You must evacuate and find alternative accommodation somewhere safe. Since your trip is a non-refundable package deal that you paid for in advance, you now have a serious hole in your budget for the rest of the year.”

Those who invested in trip cancellation or interruption cover, however, can rest assured that their finances are protected.

Avoiding catastrophes when travelling

Nedbank also recommended that South African travellers consider purchasing medical emergency coverage before going abroad.

“Say you are on a business mission abroad, and your hosts invite you for a hike along a beautiful local trail. You slip and break your ankle – requiring an expensive trip to hospital that you cannot afford,” the bank said.

“That is when you need emergency medical insurance that helps cover the reasonable costs of treatment for injury or sudden illness.”

The bank noted that some cheque and credit card accounts give this benefit automatically, and some medical aid packages also include emergency care during international travel.

“It is worth checking, because if you do not have cover included in your account or insurance packages, it is vital to have a policy in place before you travel overseas,” it said.

Baggage and personal items cover is another worthwhile investment for those looking to travel overseas, since it can come in handy in a number of scenarios.

“You are busy wrangling travel-weary kids in the arrivals terminal, and you do not notice an unscrupulous character lifting your luggage from the carousel,” the bank said.

“When your bags never arrive, you have lost everything you need for the rest of the trip – including important paperwork.”

For those who have baggage and personal items cover, what could be a catastrophe becomes more of an inconvenience, Nedbank said.

“If your luggage is delayed, the insurance may cover reasonable expenses to carry on with your journey without your luggage for a while,” it said.

“However, if your baggage is lost or stolen, it will usually cover the cost to replace the bag and its contents up to a specified limit.”

Instead of taking out multiple policies, Nedbank advised that South Africans can also consider an all-inclusive insurance package when travelling.

“This is a blanket travel insurance that covers all the above. Depending on the package you take, you can get comprehensive cover for all kinds of travel emergencies,” it said.

“However, benefits, terms and conditions and benefit limits differ between insurers, so make sure that you understand the terms and conditions of the travel insurance plan that you buy thoroughly.”

It is also worthwhile for South Africans to review their bank benefits before taking out any policies, since some bank customers may qualify for free travel insurance.