Too many South Africans sent abroad without company cover

Despite the financial, legal and administration costs associated with illness, injury or even death abroad, a low percentage of South African companies take out corporate travel insurance, exposing thousands of South African business people to risk each year.

“If I am injured, fall ill or have a medical emergency while on business in a foreign country the bill should not be for my personal account or my private insurance. I have not asked to be there. I am only there because I am representing the interests of my employer” says Shanaaz Cajee, Guardrisk Allied Products and Services. Yet instead of providing cover for their business travellers, too many South African employers rely on their employees’ own insurance cover or, worse still, the very limited travel insurance provided through credit card ticket purchases.

In Cajee’s experience the biggest costs incurred abroad are medical evacuation and repatriation along with medical expenses. In foreign currency these expenses will quickly exhaust the limits of any employee’s private Rand-based cover.

Practical risks aside, it is also now a mandated requirement when travelling to countries abroad where visas are needed, for travellers to present confirmation of their travel insurance before a visa application is considered for approval. As such, Guardrisk’s corporate travel product, for example, comes with a standard letter to embassies guaranteeing cover for insured members. Since this letter is globally accepted it is particularly useful in getting visas applications for employees travelling abroad for their employers.

Less well known, however, is that insurers are usually contracted to global service providers that have access to medical networks in most foreign destinations. So, “if you have an accident overseas, you will be provided with local medical contacts who will arrange transport or ambulances while securing your admission to the nearest appropriate medical facility – all in English or, if necessary, a translator will be provided” says Cajee.

Some insurers allow their insured members to register and gain access to details about the country they are travelling to. This information can be valuable as it advises on local conditions and dangers, as well as necessary precautions when travelling to specific countries.

Corporate travel cover also includes political evacuation. Recent developments in Egypt and Libya demonstrate the necessity of this kind of cover, which, “even if a plane or a helicopter can’t be sent in will still provide access to a local English speaking network able to evacuate trapped employees” explains Cajee.

Kidnap and wrongful arrest is also an important inclusion in good corporate travel cover. Certainly, access to trained negotiators and evacuation experts has recently proved useful to South African companies with personnel travelling abroad.

Yet even less dramatic risks can incur substantial costs for companies if they are not covered. The volcanic ash cloud over Europe in May 2010, for example, saw many South Africa corporate travellers having to extend their stays in London and other centres for up to two weeks. “At minimum GBP 300 a night, personal credit cards were soon exhausted and those without corporate travel cover found themselves in difficulties” says Cajee.

“At approximately R35 per day, corporate business travel cover should make sense to most organisations with personnel who travel for business” adds Cajee.

Purchased on an annual blanket basis, corporate travel cover can be applied to all employees travelling abroad without the need to inform the provider each time employees go on a trip. One insurer has started distributing wristbands to some of its policyholders so that all employees have to do is wear the wristband displaying emergency contact numbers whenever they travel. “Other insurers also issue personalised travel cards, indicating procedures to follow in an emergency whilst travelling,” adds Cajee.

Finally, some insurers will also extend cover to spouse and dependent children accompanying the main business traveller, this can be arranged at no cost or for a nominal premium,” concludes Cajee.