Taking out suitable insurance is a very cheap way of ensuring that your dream holiday doesn't turn into a nightmare, writes Caroline Madden
A WEEK on the slopes in spring, a long hot summer holiday in some far-flung corner of the world, a few weekend city breaks, and a pre-Christmas shopping spree in New York - this hectic travel schedule is now the norm rather than the exception among Irish consumers.
However, in the rush of organising flights, booking accommodation, planning travel itineraries and shopping for the perfect holiday capsule wardrobe, travel insurance often gets overlooked and is rarely top of anyone's agenda. But taking out suitable insurance is a very cheap way of ensuring that your dream holiday doesn't turn into a nightmare.
It's all too easy to automatically sign up for the insurance deal being pushed by your travel agent, or by your airline when booking flights online, but bear in mind that this is unlikely to be the most cost-effective option. As with any financial product, it's worth shopping around before making a decision.
"The online insurance market is now extremely competitive and there are dozens of providers vying for your business," the National Consumer Agency (NCA) points out on its consumer website, www.consumerconnect.ie.
For people travelling more than once a year, an annual multitrip policy tends to be cheaper - and less hassle - than arranging a single-trip policy each time they jet off, particularly if they plan on travelling to the US where medical care is extremely expensive. Annual multitrip policies can provide cover for individuals, couples or families for an unlimited number of trips during the policy year.
Yearly multitrip premiums for an individual under 65 range from €27 with getcover.com, to €95 with AA Ireland. However, cost should not be the sole determining factor when choosing travel insurance. When comparing multitrip products it's vital to consider whether worldwide trips are covered or just European jaunts, the level of excess (a ceiling up to which an insurance company won't pay out if you make a claim), whether winter sports are included, and of course the level of cover provided. For example, the getcover.com offer may seem like a great deal, but it only provides medical cover up to €3 million compared to €6 million with AA Ireland.
"Some of the most price-competitive policies on the market only offer cover for medical and personal liability expenses," the NCA warns.
"If you want to be insured against other eventualities like travel delays and loss or damage to your personal belongings, you may need to upgrade to a much more expensive 'premium' package - or find another insurer."
Price should not be the only criteria used to select travel cover, but at the same time there's no point paying over the odds. Consumers should check that they're not over-insured and effectively paying twice for cover.
If an individual already has private medical insurance with VHI, Vivas or Quinn Healthcare, they may be covered for medical care abroad up to a certain level, so rather than duplicating this cover, they should opt for a discounted supplementary, or so-called "top-up", travel insurance product.
However, consumers should note that VHI is one of the few insurers to cover people under 80 for pre-existing medical conditions (so if someone has to cancel or curtail their trip due to a recurrence of a medical complaint or if one of their close relatives falls ill, they will be covered) whereas many of the top-up products sold to private health insurance holders do not.
Also, VHI cannot guarantee that these top-up insurers will continue to cover a course of medical treatment once the individual's VHI hospital plan cover runs out. "This could potentially see VHI members facing at best a huge bill, or at worst discontinuation of treatment by the hospital because no payment guarantee is provided," the insurer warns.
A European Health Insurance Card also provides some level of medical cover, as it entitles the holder to basic healthcare in all other EU States. Details on how to apply for a card can be found on www.ehic.ie. However, it does not cover treatment in a private setting, nor does it cover the cost of repatriation.
The Irish Financial Services Regulatory Authority (IFSRA) advises consumers to check the terms and conditions of their credit card account. If the holiday is booked on their credit card, they may be entitled to limited cover.
It's also important to check whether your home insurance policy provides cover for valuables while away on holidays. Travel insurance is not geared towards replacing valuables, advises Edel Mannion of Mondial Assistance, which administers Aer Lingus's travel insurance policies.
"Make sure your valuables and your high-tech digital cameras are covered on your household insurance because all insurers will take the view that you are covered for your baggage . . . but they won't automatically replace that €900 digital camera," Mannion explains.
For example, with VHI's multitrip insurance, the maximum benefit for a single item of luggage is €400, and with getcover.com's basic "silver" policy the limit is a paltry €250.
It's also important to consider whether specialised "add-on" insurance is necessary, for example if heading off on a golfing or ski trip. Mondial also offers add-on wedding cover to couples going overseas to tie the knot. For an additional €5 per person, gifts, wedding attire, rings and wedding photos will be covered.
Travel insurance is not as straight-forward as it may initially seem, which perhaps explains why it is one of the most complained-about financial products in the Irish market. Last year the Financial Services Ombudsman was inundated with 387 complaints in relation to holiday cover, and a further 94 complaints have already been received so far this year.
What can you do to avoid running into difficulty? "Check before you book whether your insurer is covered by the Financial Services Ombudsman's office," the NCA advises. "Some of the UK-based schemes aren't. If you have a complaint, you may have trouble getting it resolved."
Make sure you take out, or renew, your policy the moment you've booked the trip, suggests a VHI spokeswoman. If you wait until the last minute to take out insurance, then you won't be covered if the holiday is cancelled.
Also, don't assume that any sporting or adventurous activity that you're planning on trying out is covered by your policy, even if you have added on winter sports cover. Check the hazardous pursuits section of your policy and, if in doubt, phone your insurer and double-check.
Perhaps the single most important piece of advice is to read the terms and conditions thoroughly of the policy before hopping on your flight. It will only take a few minutes but it will give you peace of mind.
In the event that you are unhappy with a regulated insurance provider, the Financial Regulator recommends that you firstly go to the broker, agent or insurance company from whom you purchased the travel insurance and make your complaint to them. If you are not satisfied with their final response, you have the right to refer your complaint to the Financial Services Ombudsman for review.
If you want to make a complaint about a travel agent who sold you the insurance, contact the Irish Travel Agents Association, the regulator adds.
"Perhaps the most important piece of advice is to read the terms and conditions thoroughly of the policy before you go. It will only take minutes and will give you peace of mind
