From: PRACTICAL TRAVELER Column in the NEW YORK TIMES

Some Help When Natural Disasters Strike
By SUSAN STELLIN

Travelers wondering if it's worthwhile to purchase trip insurance may find a lesson in the aftermath of the Dec. 26 tsunami, which struck areas in Asia popular with vacationers. Insurance providers said several provisions of the coverage provided by most comprehensive travel policies would apply to this disaster, starting with medical care and, if necessary, evacuation to a hospital or medical facility.

Dan McGinnity, vice president at Travel Guard International, an insurance provider, said that in addition to policyholders who needed medical treatment in Thailand, India and Malaysia, the company had a client who was rescued from the floods in Phuket, Thailand, and needed medical evacuation to her home country.

"We have various plans that cover up to $50,000 in medical expenses," Mr. McGinnity said. "If an air ambulance is needed, that would be included under medical evacuation and transportation coverage." That is generally a separate provision of most travel insurance policies - with its own limit up to $1 million in Travel Guard's case - which covers transportation to the nearest adequate medical facility and then back to the policyholder's home country (plus an escort, if a doctor determines one is needed).

If you think your own health insurance would pick up the tab for any of these expenses, double-check that assumption before your next international trip. According to the Health Insurance Association of America, medical care - even in an emergency - is not covered by Medicare or many private health insurance plans when Americans travel overseas.

Some Medicare supplemental plans include foreign travel emergency coverage, as do some private plans. When you call to check your coverage, it's also a good idea to ask for a phone number you can call from outside the United States if necessary, since health insurers often require notification to qualify for reimbursement of medical expenses (and often, insurance cards include only toll-free numbers that don't work all over the world).

To get medical insurance coverage when venturing abroad, travelers have several options: package travel policies that also cover things like trip cancellation and lost baggage; medical-only policies, which can be bought for a single trip or multiple trips within a year; and medical transport policies, which primarily cover emergency evacuation (often with exceptions for risky activities like rock climbing).

The price of travel insurance is typically based on the traveler's age, the amount of coverage desired and the cost or length of the trip. A general guideline is that package travel policies cost 4 to 7 percent of the trip's price (about $200 to $350 to insure a $5,000 trip), while a travel medical policy for a single trip costs roughly $20 to $50 for $50,000 to $100,000 worth of coverage. Both types of policies generally cover medical evacuation, up to a limit specified in the policy, but you can also buy just a medical evacuation policy for less than $50 a trip.

Most package travel policies also include trip interruption benefits that cover expenses like additional hotel nights or airline ticket change fees, as well as offer reimbursement for the missed portion of a trip.

"Let's say you're on the third day of a 10-day trip and your hotel is hit by the tsunami and it's made uninhabitable," Mr. McGinnity said. "We would prorate the portion of your trip you weren't able to use. In this case, 70 percent of your vacation dollars would be returned to you." (The actual reimbursement depends on the amount of insurance purchased.)

Some travel insurance providers, including Travel Guard, said they would also cover policyholders who had trips planned to areas affected by the tsunami, allowing them to cancel if their destination was uninhabitable.

In general, buying travel insurance doesn't mean you can cancel a trip for any reason and get your money back; policies stipulate acceptable reasons for a cancellation, and there are exclusions for things like existing medical conditions, acts of war and in some cases acts of terrorism; so it's important to read the fine print on a policy to understand what it covers and what's excluded.

Unlike some other types of insurance, travel insurance does cover natural disasters, because the risk exposure isn't as high as it would be to cover, say, homeowners in the event of a flood or earthquake.

Another benefit typically provided by travel insurance involves the worst-case scenario: repatriation of remains. "We've had cases where it can cost $10,000 or $20,0000 to get a body out," said Jim Grace, president of another insurance company. Most package travel insurance policies, and medical policies, cover repatriation of remains with their medical evacuation benefits, but again, each policy defines specific benefits and limits.

Whether or not a traveler has repatriation insurance, the United States State Department helps surviving family members deal with practical, legal and logistical issues in the event a relative dies overseas. "But as a general rule," said Lou Fintor, a State Department spokesman, "the family is required to bear the actual cost of repatriating remains."

Travel Insurance: Can you leave home without it?
By Kaleel Sakakeeny, eTurboNews

Before 9/11, maybe. Today? Not a good idea.

In fact, it's not at all a "good idea" to leave home without travel insurance, according to Dan McGinnity of Travel Guard International. McGinnity points to terrorism threats, a sluggish economy, the conflict in Iraq and SARS as compelling motivators driving the buying surge in travel insurance products.

He says that from a travel insurance perspective, "the ever-changing travel landscape has impacted the destinations to which our clients are traveling, the cost of their trips, the booking window for their trips, as well as the average ages of travelers purchasing insurance."

An indication of just how "hot" a travel item travel insurance is comes from Access America, another leader in travel insurance products. They registered a staggering 43 percent "spike" in travel insurance sales through July of 2003, a continuation of the 61 percent growth in the sales of their travel protection products since September 11, 2001. A company spokesperson said that the increase in sales makes sense considering that the public is traveling more and is more savvy about the pitfalls inherent in travel.

One problem, however, is differentiating between Travel-related Coverage and Travel Insurance.

And it matters from whom the coverage is bought.

Travel-related coverage, the kind usually available through credit cards, health care plans and homeowners insurance, often falls short of the kind of coverage provided by a comprehensive Travel Insurance policy offered by companies like Travel Guard, and Access America.

Access America and Travel Guard have also made coverage of terrorist incidents here and abroad part of their standard benefits.

And they have steadily improved their product in the face of new challenges.

A clear sign of the times, for example, is the fact that Access America, one of the largest travel protection providers in the US, recently expanded its definition of family to include cohabiting couples of whatever configuration.

For the industry itself, they've introduced proprietary software enabling travel agents to more effectively provide travel insurance for their clients.

Results? A 30 percent increase in sales of travel protection services.

Not to be outdone, Travel Guard has broadened the definition of "traveling companion" to include members of a traveling party that have a shared itinerary, but do not share accommodations.

So, how necessary is travel insurance?

Travelers face two major potential financial losses:
1) They could lose the non-refundable, pre-paid portion of a trip if they have to cancel the trip or interrupt it.
2) They can face the expenses of medical costs associated with an illness and maybe repatriation.

A comprehensive travel policy will cover these loses if it provides the following:
• Trip Cancellation/Trip Interruption coverage. Travel is costly, and this provision reimburses the traveler's pre-paid, non-refundable portion of a trip, if the traveler has to cancel his or her trip or return home for covered reasons. Typically, this means illness, injury, jury duty, death in the immediate family.

These policies usually must be purchased within seven to fifteen days of booking a trip and making a deposit, in order to be covered against financial default and waiver of pre-existing medical conditions.

However, in a nod to the dramatically changing travel landscape, Travel Guard has introduced its new "Pack 'N Go" product.

According to company executives, this is an "affordable option" for travelers who are waiting for the last possible minute to make travel plans. . . a growing tendency among the traveling public as it waits (and searches) for the best possible travel deal.

For $15.00 a day, clients taking advantage of discounts or spur-of-the-moment getaways are covered for a seven day trip.

For those seeking only to protect their plane tickets, a huge percent of the public, Travel Guard has come up with an Air Ticket Protection Plan that covers ticket-change fees, as well as full ticket costs in the event of cancelled or interrupted travel, for covered reasons.

• Medical Expenses. Comprehensive travel insurance becomes the primary coverage for medical and surgical expense while traveling, a major benefit since standard health coverage often isn't valid outside the U.S.

Some coverage may be provided by HMO's, and travelers need to check with their insurer.

And Medicare and Medicaid DO NOT COVER travel outside the States.

• Medical Evacuation. Some credit card policies arrange medical emergency transportation (at the cardholders expense). The more comprehensive travel insurance plans pay airfare, medical escort and transportation to the nearest adequate medical facility.

These emergency travel services and medical assistance provisions must be available 24/7 if they are to be of any value.

• Baggage Protection. Look for a policy that provides coverage above and beyond standard reimbursements by the airline. Ideally, buy from a company that will actually track lost baggage, which can result in faster more effective service than the airlines provide.

• Many reliable insurance companies including Travel Guard now include a Concierge Service, which takes care of a traveler's restaurant needs, ground transportation services, event tickets, tee times and even flower arrangements.

In this "Buyer Beware" world, read the fine print, and buy coverage with a third-party company that's been around the travel track.

(Kaleel Sakakeeny covers the family and leisure travel market for eTurbo News)

** Travel Guard International is America's leading travel insurance company insuring more than 4 million travelers each year. We offer protection against trip cancellation penalties, travel interruptions and delays, emergency medical expenses, lost baggage and more. Plus, every Travel Guard policy includes our 24-hour "911" travel emergency service for emergency medical assistance, last-minute or emergency travel changes, lost luggage tracking, pre-trip travel advice and more. **