Is travel insurance really necessary?

What is travel insurance

Travel insurance is optional but covers common concurrences while traveling including flight delays, luggage loss, theft, accidents, and medical expenses.

Different travel insurance providers will offer different coverage options with some of the most common benefits and exclusions listed below.

Benefits of travel insurance

Provides medical coverage when travelling overseas which may be inadequate with your domestic medical coverage.

Coverage benefits

• Death and permanent disablement due to accident

• Medical expenses including surgical, hospital, emergency dental due to


• Hospitalisation income

• Medication dispatch (when unavailable locally)

• Emergency medical evacuation and repatriation

• Deposit and trip cancellation

• Personal luggage and effects compensation

• Travel documents replacement reimbursement

• Luggage daily

• Travel delay

• Natural disaster at destination

• Missed departure due to public transport

• Missed travel connection compensation

• Travel carrier overbooking

• Hijacking and terrorism coverage

• Personal liability

• Personal money losses and credit card indemnity

• Home compensation for fire/burglary

Additional optional coverage

• Water sports: canoeing, kayaking, rowing, yachting, parasailing, surfing, windsurfing, jet skiing, scuba diving

• Winter sports: ice skating, snowboarding

• Others: Paintball, bungee, indoor climbing, hot air balloon, mountaineering, ATV

Travel insurance options


• Adult: Age 18-70

• Child: Age 30 days-17 years

• Senior Citizen: Age 71-80

• Family: insured + adult legal spouse + children full time studying and residing in home territory


• Annual

• Time limited (in days/weeks)


• Domestic (Malaysia)

• Asia

• Worldwide

Malaysian travel insurance requirements

• Malaysian citizen or permanent resident

• Or holding a valid working permit

• Or dependents are residing in Malaysia

• Or foreign student in Malaysia

• All departures are from Malaysia and returning to Malaysia after trip

Beware exclusions

• Existing conditions

• Delay or detention by customs or government authorities

• Hazardous sports unless covered by optional coverage

• HIV or AIDS related

• Radiation or nuclear contamination

• Pregnancy, childbirth, abortion or miscarriage

• War, riot or civil commotion

Excluded occupations

• Flight/sea/train crew

• Mine/oil rig workers

• Aerial photographers

• Explosives handlers

• Personnel of navy, military, air force, law enforcement or civil defence

Beneficiary info

Remember to include your nominee information to make sure your beneficiary receives your insurance claim benefits in the event you pass away unexpectedly.

Do you need travel insurance?

If you are traveling overseas it is wise to consider travel insurance. The cost of travel insurance is minimal compared to possible costs of up to US$50,000 (RM206,090) or more overseas if anything untoward happens.

You will also want to check in detail your domestic medical insurance and emergency repatriation, and any other travel insurance that you may have i.e. credit card complimentary travel insurance, to ensure you’re sufficiently covered.

Compare different policy coverage options but do not go for just the cheapest. Ensure that a copy of your insurance policy summary details are kept with a friend or family member.

This article first appeared in

MyPF is on a mission to help simplify and grow Malaysians’ personal finances through financial education.