Travel insurance in a terrorism world

A South African family recently made news for unfortunate reasons. They were sitting in a café in Nice, France, when a terrorist attack occurred in July; the father packed the family up and went to a perceivably safer destination – Istanbul, Turkey. The next day, a failed military coup took place in the country.

Before September 11 2001, travel and tourism was the world’s largest industry, accounting for one in every 12 jobs. When the massive $3.6 trillion industry almost ground to a halt after the events of that day, the ripple effects extended well beyond the United States.

The difficult challenge

The British and Commonwealth website provides travellers with the latest travel advice by country. Surprisingly the threat of terrorism is not only a global threat, but even within the borders of South Africa we face a threat of terrorism.

Travellers no doubt already know that there is some – albeit very small – risk of terror whenever one travels, and that the rise of Islamic State (ISIS) and the chaos in the Middle East only increases that risk.

There is also an uncertainty as to where and when terrorists will strike. Fifteen years after the 9/11 attacks, a hotel in the upmarket suburb of Chelsea in New York was rocked by a bomb blast which injured 29 people. This comes after multiple attacks in France, Belgium and Germany which were all seen as countries that were not high on terrorists’ wish lists.

We cannot live our lives in fear, so we travel, for business or pleasure. This is where travel insurance has an important role to play. But what are the important questions when it comes to travel insurance?

Travel insurance : the first steps

If there is a terrorist incident in a country that your clients are traveling to, can they cancel their trip and get a full refund?

Clients are encouraged to review the portion of their particular plan dealing with trip cancellation, which contains a list all of the reasons that can be covered should a traveller need to cancel a trip.

Some policies provide cover for cancellation in case of a terrorist attack. Please note that most policies will exclude cover to any country if the same country/city experienced a similar attack 90 days or less before clients purchase cover.

Timing is also important. Clients would need to purchase the policy before the attack occurred, not after the incident.

Is injury covered?

Will travel insurance cover clients in the event that they are injured in a terrorist incident?

Once again, clients are encouraged to read the policy closely. Travel insurance plans that cover emergency medical expenses should list exclusions. Refer to both general exclusions and any exclusion that apply specifically to medical expenses. If terrorism is not a listed exclusion, coverage could likely apply for an injury that is the result of a terrorist attack.

Most travel insurance policies will cover clients with a medical transfer to the closest most appropriate medical facility as determined by the insurer.

The main purpose of a travel insurance policy is to assist when foreign hospitals demand payment up front, a situation that can occur when traveling abroad. Policies with a guarantee of payment can be financial lifesavers when clients require urgent medical care.

Getting out of Dodge

Most travel insurance provides cover for evacuation due to a medical reason only. There is usually no cover to evacuate clients out of the area where an attack might have occurred.

The benefit of having travel insurance is helping travellers with logistics, which can be formidable in the wake of a terrorist attack. Travel insurance offers round-the-clock travel assistance services that should include emergency return travel arrangements and re-booking flights on the insured’s behalf.