The Hong Kong travel insurance industry has improved its high-risk activity cover, according to a small survey carried out by the political party, the Democratic Alliance for the Betterment and Progress of Hong Kong (DAB).
All six single-trip travel insurance plans examined featured cover for such activities as diving, rock climbing and sky diving. The need for such cover was publicised after nine Hong Kong tourists died in a hot air ballooning accident in Egypt in 2013.
However, the scrutiny of the policies found that terrorism cover is wanting. Only four plans covered policyholders for delays and changes of schedules resulting from such attacks. One only covered medical protection and emergency assistance in such an event, while the sixth policy did not cover terrorist events at all.
Mr Holden Chow, DAB lawmaker, said: “It seems no travel product covers death or injuries that may result from such attacks.”
A separate phone poll of 528 travellers carried out by DAB between May and June of this year found that only 71% had insurance. Among them, 58% actually understood their policies and 20% had a claim denied because they had not properly checked what was covered in their policy.
In addition, the number of travel accident insurance plans purchased online has been increasing as 15.8% of the buyers said they used this channel, compared with 4.1% in 2013.
However, three in 10 of the buyers admitted they had no idea what they bought, meaning they did not study the terms and conditions of the travel plans, the survey found.