FSS Urges Travelers to Check Travel Insurance Coverage and Policy Terms

Travel Insurance Guidance for the Peak Summer Vacation Season
"Intentional Bodily Injury Not Covered"

The Financial Supervisory Service provided guidance on July 12 regarding the scope of coverage for travel insurance and key examples of dispute mediation, ahead of the summer vacation season.

Travel insurance is a product that compensates for medical expenses due to injury or illness, as well as liability during travel.

A notable feature of travel insurance is that even if you subscribe to multiple products, benefits are not duplicated. The higher the deductible that the policyholder, not the insurer, must pay when making a claim, the lower the premium. Typically, personal insurance imposes a deductible based on a certain percentage of total medical expenses (for example, 30%), while property insurance applies a deductible based on a fixed amount (for example, 100,000 won).

Personal insurance mainly provides compensation for death or permanent disability caused by accidents during travel, as well as hospitalization or outpatient treatment costs arising from injuries or illnesses. Property insurance covers damage to personal belongings during travel, liability for damage to another person's property, loss of checked baggage, and expenses incurred due to flight delays.

One important point to note is that incidents caused intentionally by the policyholder, such as intentional bodily harm, are not covered. Personal insurance excludes coverage for incidents resulting from the policyholder's intent, pre-existing conditions, war, or high-risk sports. Property insurance does not cover losses due to the policyholder's intent, losses of cash, plants and animals, intangible assets such as data, or damages to assistive devices.

Recent major complaints include coverage for flight delay riders, damage to personal belongings, and liability coverage.

Travel insurance includes an optional clause that compensates for direct losses (expenses) incurred at airports, etc., when a flight is delayed or canceled for a certain period. However, if the flight is not delayed beyond the period specified in the policy terms, compensation may be denied.

According to a dispute mediation case disclosed by the Financial Supervisory Service, policyholder A filed a claim for the cost of issuing a new ticket after a volcano eruption canceled the return flight, and had to board another flight departing from a different airport one hour and 30 minutes later, but the claim was denied. This was because the policy clearly stated that coverage would be provided only if the flight was delayed by four hours or more.

Additionally, even if dentures, prosthetic limbs, or contact lenses are damaged during travel, insurance benefits may not be paid.

An official from the Financial Supervisory Service stated, "Even if you subscribe to a travel insurance product, coverage for injury or death caused intentionally may not be provided, so we recommend that you carefully review the terms and conditions of your selected product."

This content was produced with the assistance of AI translation services.