With booming economy and world recognition for the Beijing Olympics next year lots of Chinese are travelling in China and overseas. The travel Insurance Division at Greater China AIU Insurance Company (AIG) reported only 10% take out insurance to cover overseas trips and less than 1% for travel within China.
The China National Bureau of Statistics reported that in 2006 1.39 billion Chinese have travelled at least once and 34.5 million people travelled overseas.
The way it works in China most travel agencies offer customer Travel Agencies' Liability Insurance. Problem arising is travel agency is the beneficiary (insured) and only party that may be compensated.
Travel Agencies' Liability Insurance law was officially enacted in China on 1 September 2001 after National Tourism Administration of China (CNTA) passed law on 15 May 2001. This statute require every Chinese travel agency provide customers with this insurance to ensure the rights and interests of both travel agency and traveller.
Travel Agencies' Liability Insurance provides cover for 'Accidents' which are caused by the travel agency and include:
- Tourists' casualty (injury or death)
- Related expenses for medical treatment and related transportation fee
- Expenses related to the tourists' death and repatriating the body
- Expenses that occur when the necessary aid has been provided to tourists, including the transportation fee, dining and lodging costs of relatives visiting; payment for the staff of the travel agency and doctors; fees for postponing the tourists travel itineraries
- Loss, damage, and theft of tourists' belongings
- Legal costs incurred disputing the fault of travel agency
- Other compensation agreed upon between the travel agency and the insurance company
As this cover is limited to accidents in control of travel agency, the traveler should buy other personal insurance.
In other countries:
- AIG report 87% of travellers from Japan buy insurance before they travel.
- In the USA 77% of people using a travel agent buy travel insurance. In 2004 this translated to $1 billion spending on travel insurance.
- In the UK 20% of people travelling to European destinations don’t take out any kind travel insurance. (Foreign and Commonwealth Office)
The US Travel Insurance Association (UStiA) report people who buy travel insurance tend to be more well-educated, travel more frequently and have higher household incomes than those who don’t.
UK recent survey found:
- one in three people suffer some kind of problem whilst on holiday
- eight per cent had lost their luggage
- six per cent had to cancel or cut short their holiday due to unforeseen circumstances
- a number of people had personal items or their money stolen
- eighteen per cent of people suffered a holiday disaster but could not claim because they had no insurance
China travel agents take 8-20% commission and makes it very expensive.
Daniel Cheung, vice-president of the Travel Insurance Division at Greater China AIU Insurance Company (AIG) said many Chinese travelers prefer to trust in luck and think they will lose money if they don't have any cause to make a claim.
Author
HuangX
Insurance Policy
Country: - China
Policy Description: - Travel Insurance
Insurer: - Greater China AIU Insurance Company (AIG) and others
External Links
British Foreign & Commonwealth Office
Australia Government Smart Traveller
US Travel Insurance Association
