Warning for South African travellers

As international travel increases in the post-pandemic era, experts urge South Africans to secure comprehensive travel insurance to protect themselves against medical expenses and cancellations.

With tourism numbers rising, many South Africans prepare for year-end international trips during the festive season. Having the appropriate travel insurance in place is essential to ensure a stress-free journey.

In the 2023 financial year, the Airports Company South Africa (ACSA) reported a steady increase in passenger numbers with a total of 27.2 million passengers travelling through its airports in the 2023 financial year-end, compared to 23.1 million the same period two years prior.

Jason Veitch, Head of Travel Insurance at Travel Insurance Consultants (TIC), a division of Santam Group, explained that he is optimistic about the consistent upswing in air travel numbers both locally and globally. 

He noted that international travel from South Africa is a big driver, with travel agent Flight Centre citing that 86% of its bookings in 2023 were for international trips.

Veitch emphasised the importance of travellers going abroad to purchase a comprehensive travel insurance policy to prepare for unexpected setbacks, particularly regarding medical coverage.

“Medical claims are the most claimed benefit of a travel insurance policy, accounting for 80% of claims submitted and 62% of the total cost of claims. This is followed by cancellation at 15% and travel delay and luggage loss at 5%.”

The trend is exacerbated by medical inflation worldwide. Aon predicts that the global average medical trend rate will remain in the double digits, at 10%. 

“We have also noted an exponential increase in injury claims and respiratory-related ailments since the Covid-19 pandemic.”

According to Veitch, TIC have also witnessed several disruptions in the travel industry in recent years such as the increasing effects of the climate crisis, geopolitical tensions as well as the fluctuations of the economy. 

“Airlines are grappling with fluctuating fuel prices, leading to occasional flight cancellations and missed connecting flights,” Veitch said.

“While airlines try their best to accommodate passengers, the solutions may not always align with the passenger’s itinerary or their budget.”

He highlighted three critical reasons for purchasing a travel insurance policy:

• The high cost of medical treatment abroad.
• There is potential significant financial loss should things go wrong and the holiday be cancelled.
• The relatively low cost of a travel insurance policy compared to the potential expense of not having comprehensive coverage.

When purchasing a travel insurance policy, he advised South African travellers to:

• consider the medical limits on the policy,
• never incur a significant expense without confirming with the travel insurance provider,
• understand the terms and conditions of the policy, and
• appreciate the value of using a travel agent for travel arrangements.

“Everyone deserves to have a wonderful, stress-free travel experience. This is made more possible when the traveller plans properly and purchases the correct travel insurance policy.”

According to Nedbank, travellers can also invest in other kinds of travel insurance, in addition to medical emergency cover.

Trip cancellation or interruption covers refunds you the non-refundable and unused portion of your travel costs if you need to cancel your trip due to an unforeseen event.

This could include, for example, a tropical storm which interrupts your holiday and forces you to seek safe accommodation everywhere.

Baggage and personal items cover is another type of travel insurance which protects you in the case of delayed, lost and stolen luggage.

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

Travellers could also opt for an all-inclusive, blanket travel insurance that covers all the above.

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