Before Departure, Carefully Review 'Travel Insurance Terms' to Avoid Trouble

Financial Supervisory Service Discloses Traveler's Insurance Precautions
Many Cases of Claim Denials Due to Inadequate Review of Terms

Office worker Mr. Kim was scheduled to return to Korea via Tokyo from LA. However, the flight from LA was suddenly delayed by one hour, causing him to miss his connecting flight in Tokyo. Mr. Kim filed a claim with the insurance company for expenses such as accommodation costs incurred while waiting for an alternative flight, but the claim was denied. This was because the insurance policy stated that compensation is only provided if the preceding flight is delayed by more than four hours in cases of missed connecting flights.

The Financial Supervisory Service (FSS) disclosed on the 19th precautions to take when filing claims as the number of overseas travel insurance subscribers increases during the summer vacation season. Recently, as direct insurance subscriptions where consumers select special coverage themselves have expanded, cases of consumers suffering losses due to not thoroughly checking important terms in the policy have increased.

Mr. Yoo subscribed to group overseas travel insurance through an online platform, but suffered losses due to delayed baggage arrival and flight cancellations during the trip. He checked the information about the 'Flight and Baggage Delay Expense Special Coverage' in the 'Certificate of Subscription' provided by the insurer and filed a claim, but it was denied because he had not subscribed to that special coverage. The insurer explained that the certificate of subscription is only used to confirm the fact of insurance subscription, and all matters related to the insurance contract must be checked in the insurance policy and terms and conditions.

Mr. Chae filed a claim after losing his bag during the trip, but it was denied because the product description provided at the time of subscription clearly stated that 'losses are not compensated.' Another traveler, Mr. Jang, filed a claim for repair costs after his mobile phone was damaged during the trip, but filed a complaint alleging that the insurer underestimated the compensation. According to the insurance policy, when repairing damage to personal belongings, the insurance payout is defined as the cost necessary to restore the item to its condition immediately before the damage (the loss amount). The component cost included in the mobile phone repair cost is determined based on the new product price, but the loss amount is determined based on the used product price, so the insurance payout is calculated by deducting the price difference between new and used parts from the repair cost.

Subscribers to the 'Overseas Travel Actual Medical Expense Special Coverage' should be cautious about duplicate compensation. Mr. Choi fractured his finger during overseas travel, received treatment locally, and underwent surgery at a domestic hospital before filing a claim. The insurer fully compensated the overseas medical expenses but notified that domestic medical expenses would be compensated proportionally with other actual medical expense insurance. Mr. Choi filed a complaint alleging that the insurer failed to fulfill its duty to explain, but it was not accepted. It was confirmed that he had checked the proportional compensation information provided under 'Important Information to Know' when subscribing online. An FSS official stated, "If you already have actual medical expense insurance, domestic medical expenses are compensated proportionally, so subscribing to overlapping 'Domestic Medical Expense Coverage' may have limited benefits. If you receive treatment at a local hospital during overseas travel, you must prepare documents such as a doctor's prescription, medical fee statement, and hospitalization confirmation before returning home."