In case of lost baggage, cancelled flights or injury abroad, it is vital to take out travel insurance - and to ensure it suits your needs, writes Conor Pope
OF THE THOUSANDS of people affected by this month's chronic radar problems at Dublin airport, many probably spent the long hours waiting for news cursing the fact they hadn't bought travel insurance.
According to figures released by the VHI earlier this summer, just under 50 per cent of the Irish people who go abroad each year think travel insurance isn't something they should pack in their suitcase.
It wasn't only the faulty radar systems that caused tourist chaos this month. Last weekend more than 200 Irish holidaymakers found themselves stranded in Cyprus for more than 48 hours after Dublin tour operator Fáilte Travel ceased trading. Thousands more who had booked holidays with the operator are waiting for refunds from the Commission for Aviation Regulation.
At least they should get their money back, because all tour operators are legally obliged to be financially bonded. People who book DIY holidays using online agencies or by booking directly with hotels and airlines have no such safety net, which makes travel insurance doubly important.
In a high-price economy such as Ireland, travel insurance offers genuine value for money, with year-long multi-trip policies now on sale for under €40. Going without, however, could end up ruining your holiday and costing you an arm and a leg, particularly if you break one. In the US the cost of treating a broken limb is about €15,000, while getting an air ambulance home should an illness be even more severe will cost at least twice that.
And mishaps do occur. Of the 350,000 people who took out a VHI travel-insurance policy last year, about 3,000 needed emergency medical treatment while overseas. The claims paid out amounted to €11 million - an increase of nearly a third on the previous year.
There are dozens of companies, including airlines and tour operators, offering policies, and the prices vary dramatically. A worldwide multi-trip premium is €55.50 with 123.ie and €145 with AA Ireland. All quotes come with a health warning, however, and it is a mistake to make price the only, or even the most important, factor when picking insurance.
Of more importance is what you get for your money. Some bargain-basement policies only cover trips within the EU, while others have high excesses, don't cover sports equipment, winter sports or even lost baggage or delayed flights. The level of cover provided is also important - the 123.ie quote above provides medical cover up to €3 million, while the AA policy offers twice that amount. It also offers considerably more - up to €2,750 - to cover lost baggage and €700 for travel delays. Many low-cost policies do not cover lost or delayed baggage, cancelled flights or missed connections.
The VHI study showed that a quarter of the 1,000 adults surveyed believed the cost rather than the level of cover was the most important thing, with just 8 per cent saying they chose their policy based on the cover provided.
A free European Health Insurance Card provides some level of medical cover and entitles the holder to basic healthcare across EU member states. It is not, however, an adequate substitute for travel insurance, as the hospital care may be minimal. Nor does it cover repatriation costs and, obviously, offers no comfort in the event of lost or damaged baggage or cancelled or aborted holidays.
Such mishaps are by far the most common reason for claims. Ryanair chief executive Michael O'Leary made clear during the radar disruption that he was not in favour of offering stranded passengers the comfort of a cup of tea. So the chances of getting genuine compensation for missed connections or lost holidays because of cancelled flights are pretty slim.
Any airline that loses or damages your luggage is legally obliged to compensate you. But finding a customer-care number to make inquiries is often difficult, with many airlines only accepting letters or faxes of complaint, which are then frequently ignored.
In the event of something untoward happening to you, your flight or your luggage, it is almost always easier to claim from your insurer directly - as long as you have the appropriate cover. Insurance companies have the right of recovery from airlines, so it is often no harm passing the hassle of extracting money from an airline on to them. After all, holidaymakers can do without that stress.
Good policy: dos and don'ts of insurance
Do . . .
Take out a multi-trip annual policy if you are planning more than two trips a year.
Shop around before making a decision - there are plenty of websites offering instant quotes, so it can be done in minutes.
Read the terms and conditions. Do read the terms and conditions. Do read the terms and conditions. Did we mention how important it is to read the terms and conditions?
Contact the local police in the event of a theft overseas. In the absence of a police report, a claim will be difficult or impossible.
Bring all emergency contact details with you, even if you're going on a package holiday.
Keep your receipts - if you incur any expenses because of lost baggage, crime or illness, your claim will not be entertained unless you can actually prove you bought that Picasso etching.
Don't . . .
Leave it until the last minute. It saves no money but might mean you have no cover if the holiday has to be cancelled. Two-thirds of all claims are for cancellations due to changing circumstances or family bereavements.
Forget to sign up for a European Health Insurance Card if you are travelling within the EU. Forms can be downloaded at www.ehic.ie/ onlineapp.htm.
Take out the policy offered by a travel agent or airline when booking flights online - they are almost never good value.
Rely on the travel insurance offered with credit cards - it is minimal at best and useless at worst.