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Stranded passengers? How travel insurers pick up the tab
As global travel continues to be disrupted by geopolitical tensions, natural disasters, and other unforeseen crises, travel insurance is becoming as a key part of responsible travel planning.
The escalating political tensions and sudden closures to air travel across parts of the Middle East have shown how travellers can be affected when global travel is suddenly disrupted. In recent weeks, passengers transiting through major hubs such as Dubai have found themselves stranded as airlines suspended and rerouted flights amid tensions linked to the war between Iran and the US and Israel.
Such disruptions mean changes to travel plans for many travellers, including missed connections and the need to secure last-minute tickets.
According to Leonard Chirchir, the chief operating officer at Britam General Insurance, travel insurance is important during times of crisis.
This type of policy protects travellers from financial losses caused by unexpected events before or during a trip.
“Travel insurance provides critical financial protection when travellers encounter unexpected disruptions, such as cancelled flights, medical emergencies or political instability at their destination,” he says.
Mr Chirchir says that, in such situations, travellers may be forced to purchase last-minute flight tickets or arrange emergency repatriation flights, which can significantly increase costs. In this case, repatriation flights are special flights scheduled to bring people back to their home country during emergencies or major disruptions when normal flights are unavailable.
“Travel insurance protects travellers from these sudden expenses by covering costs such as emergency evacuation, medical treatment abroad and the cost of returning home earlier than planned.”
Travel insurance policies are designed to cover a wide range of disruptions that travellers may encounter on international trips. For instance, they typically cover medical emergency evacuation costs, trip cancellations, travel delays, and lost baggage.
Insurance companies also offer specialised products, such as the Schengen cover for travellers visiting European countries under the Schengen visa system, and student plans for individuals travelling abroad to study or for long-term stays.
Mr Chirchir says that travel insurance premiums vary depending on several factors, including the destination, duration of travel, age of the traveller, and level of cover selected.
"Travelling to regions with higher medical costs will usually attract higher premiums.' Premium plans with higher limits cost more than basic plans. Travel premiums can be as low as USD 3 per day,” he says.
Despite the relatively low cost compared to the potential financial exposure, many travellers still overlook travel insurance when planning trips abroad. Industry experts say comprehensive travel covers are crucial, especially policies that include extensions for political risks or war-related disruptions.
Erick Muriungi, General Manager at Family Bank Bancassurance Intermediary says that emergency evacuations or repatriation flights can be extremely costly.
“When such emergencies arise and repatriation becomes necessary, the cost of last-minute or special evacuation flights can be several times higher than the original ticket price,” he says.
Like Mr Chirchir, he believes that travel insurance protects travellers from unexpected financial burdens by covering emergency evacuations, repatriations, and related expenses.
“It also ensures that passengers can return home safely without having to worry about significant costs arising during a crisis.”
In terms of the practicalities, Mr Muriungi says that travel insurance usually represents only a small fraction of the total travel cost.
"Travel insurance generally represents only three to seven percent of the total trip value," he says.
"Overall, travel insurance acts as a financial safety net, ensuring that travellers are protected from significant out-of-pocket expenses when disruptions occur," says Mr Muriungi.
As global travel continues to be disrupted by geopolitical tensions, natural disasters, and other unforeseen crises, travel insurance is becoming as a key part of responsible travel planning.
Insurers say travellers should carefully consider the scope and reliability of the cover they choose.
Joey Chilloh of Sanlam Allianz General Insurance says travellers should carefully evaluate the insurer and coverage limits before purchasing a policy.
"It is important to choose a reputable insurance provider with strong, reliable global medical assistance partners. This ensures that support can be accessed quickly and efficiently in the event of an emergency," she says.
She adds that travellers should also pay attention to the level of cover provided by the policy.
"Travellers should carefully review the coverage limits provided under the policy, particularly for medical and emergency-related expenses, to ensure they are sufficient to cover potential costs while abroad. Adequate coverage limits help protect travellers from unexpected financial burdens during their trip.”
