Travel insurance and cheap travel insurance schemes that are actually tricks to get your money, even complete scams to steal your credit card information, really do exist. Be wary when you purchase anything, especially when you are purchasing online.
When you are arranging your travel insurance and other travel arrangements, make sure you go with a reputable provider. If you don’t, you could become a victim of a scam. Just like any other business, this area is also a target of those wanting to take your money and more. Travel related fraud scams can be hard to detect if you don’t know all the details. You should use this checklist as a guide to inspecting your insurance.
• Policy Name. Sounds obvious, but it may have variations of title that have implications later on. It should be called ‘travel insurance’, ‘benefit services contract’ or ‘travel protection plan’. If the name isn’t right, you know you are not buying the right product.
• Underwriter. Whatever you are buying, even cheap travel insurance should have a licensed and regulated underwriter. The underwriter should actually be insured too. You should look at who the underwriter is and research the state of their company and organization. There are international insurance rating agencies you can find online to check the rating of the agency you are looking at.
• Check around. Insurance is available from so many companies. It is important to compare price and details of the contract. There will be certain items in the contract which they should all cover and parts that vary. Making sure you are getting what you want, at the right price, is in your best interest.
• Legality. A licensed company should have proof of that, such as a business number. Don’t take their word for it. A scam operator may even make these details up. You need to research for yourself.
• Fine Print. It should not even be there in the first place, but when it is, make sure you read it carefully. Never sign anything, unless you have read it and understand it 100%. Make sure you get examples to explain further when you are not totally clear.
• Tricky Details. Some scammers will be as educated as a lawyer and know how to make changes in a contract and clause that we cannot see. There may be lengthy and complicated statements in the contract that are misleading. It is best to have a friend who understands law enough to check if the company when not that well known to you.
• Online. Make sure the online company has a legitimate physical address and contact details when purchasing from a website. Never give out your credit or banking details. Even some scammers will build legitimate looking sites just to take people’s money. Don’t be fooled just because a website has logos and looks professionally presented.
• Be very careful about decisions you make when claiming. One example where an Australian tourist was hurt in the UK, had minor surgery, and then was referred to have treatment in Australia. She found she was not able to claim the treatment after getting home, unless she paid for it herself. The insurance company determined, because she had already finished her treatment while on travel, and the treatment at home was secondary, it was not for them to pay. Small decisions when you claim can have huge ramifications later.
Understand there are more issues than this, and to take care with any of your purchases.
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