No Duplicate Compensation for Domestic Medical Expenses in Travel Insurance if Already Covered by Indemnity Medical Insurance

Consumer Advisory on Travel Insurance Compensation Provided by the Financial Supervisory Service

The Financial Supervisory Service announced on April 29 that even if your travel insurance policy includes an overseas medical expense rider, compensation for domestic medical expenses may be limited if you are already covered by another indemnity medical insurance policy.

On this day, the Financial Supervisory Service provided consumer advisories regarding travel insurance compensation, highlighting key dispute cases. The agency explained that travelers are not guaranteed full compensation simply because they have purchased travel insurance in the event of unexpected situations such as hospitalization, flight cancellations, or lost baggage.

The Financial Supervisory Service cited the case of a person surnamed Song, who fractured a toe while traveling in Vietnam and underwent surgery in Korea. Song claimed insurance benefits based on the indemnity medical expense rider of the travel insurance policy, but since Song was already covered by another indemnity medical insurance policy from a different company, only a portion of the medical expenses was reimbursed.

An official from the Financial Supervisory Service stated, "If you are already covered by another indemnity medical insurance policy, you cannot receive duplicate compensation even if you add domestic medical expense coverage to your travel insurance. Please check whether you already have indemnity medical insurance before purchasing travel insurance."

The Financial Supervisory Service also provided detailed guidance on the scope of compensation for hospitalization, flight cancellations, and lost baggage.

Regarding hospitalization, it is important to check whether the services are provided by registered medical institutions. Travel insurance only covers expenses such as treatment fees and medication costs incurred at medical institutions. Expenses such as ambulance fees from non-medical service providers are not covered.

For flight cancellations, only unavoidable expenses such as food and beverage costs or lounge usage fees due to flight delays are covered. The purchase of daily necessities is not covered.

Additionally, only 'direct loss' expenses such as meal and accommodation costs resulting from flight delays are reimbursed. 'Indirect loss' expenses, such as entrance fees to tourist attractions or performance tickets resulting from itinerary changes, are not compensated.

With regard to lost baggage, it is important to note that items lost due to the policyholder's negligence are not covered. Only items that are damaged, stolen, or robbed are eligible for compensation.

Even in the event of natural disasters or war, compensation is not unconditional. If you terminate your trip and return home, additional expenses incurred will be reimbursed. However, if you continue your trip by changing your itinerary, or if no additional expenses are incurred due to trip interruption, you may not be eligible for compensation.