HONG KONG – The Consumer Council has issued a strong advisory urging Hong Kong travelers to meticulously examine the fine print of travel insurance policies following a surge in consumer complaints over rejected claims. This warning emphasizes that common perceptions of travel risk coverage often conflict sharply with the highly specific, and sometimes restrictive, contractual provisions within insurance documents, highlighting the crucial need for pre-purchase diligence.
The Council’s investigation into recent claim disputes revealed several recurring pitfalls where assumptions about coverage led to denial. Insurers frequently rejected claims based on highly granular definitions of location, timing, and mode of transport, clauses often overlooked by policyholders focused on headline benefits.
Defining the Boundaries of Coverage
One striking case involved a policyholder whose baggage delay claim was denied despite waiting 31 hours for her luggage after returning to Hong Kong. Insurer “Company A” ruled that the baggage delay benefit only applied upon arrival at the destination outside of Hong Kong, specifically excluding losses incurred after the traveler’s return home. This unresolved dispute underscores how geographical restrictions can void otherwise seemingly valid benefits.
Another traveler on a complex European itinerary faced denial when a mid-trip flight cancellation, caused by industrial action, led to a claim against “Company B.” The insurer initially maintained that coverage was restricted only to transport arrangements booked before the trip commenced. Because the canceled flight ticket was purchased after the journey from Hong Kong had begun, the claim was initially rejected. Only after intervention by the Consumer Council did the insurer make a discretionary, non-precedential payment to resolve the issue, illustrating the rigid interpretation insurers apply to the definition of a booked trip.
Further complexities arose during a self-driving holiday in Japan, where a traveler was stranded by a snowstorm. Insurer “Company C” rejected claims for both trip curtailment and travel delay. The company specified that travel delay coverage applied exclusively to public transportation, not private rental vehicles. Furthermore, the trip curtailment benefit was deemed inapplicable because the traveler eventually completed the journey, despite significant disruption.
Actionable Advice for Travelers
To bridge the gap between consumer expectations and contractual reality, the Council provided essential steps for travelers purchasing policies:
- Read the Definitions: Pay particular attention to how key terms like “journey,” “booked trip,” and “public transport” are defined, as these shape the policy’s scope.
- Identify Exclusions: Thoroughly vet clauses detailing what circumstances—such as industrial action, natural disasters, or specific activities—are not covered.
- Time of Purchase: Understand if ancillary or subsequent travel bookings made after the initial departure date are covered.
- Retain Documentation: Keep all booking confirmations, receipts, communication logs, and travel documents necessary to substantiate a claim.
Improving Industry Transparency
The Consumer Council also called on the insurance industry to significantly enhance transparency. Recommendations include improving the sales interface design to more clearly highlight critical caveats, scope definitions, and exclusions, thereby preventing reliance on ambiguous marketing language.
When disputes arise, policyholders should first communicate directly with the insurer. If resolution fails, travelers may seek assistance from the Consumer Council, the Insurance Authority, or the Insurance Complaints Bureau, depending on the nature of their grievance. Ultimately, understanding the precise definitions within a policy is the single most important step a traveler can take to ensure their claims are honored.