Our Blog

Play safe in the sun

With the summer holiday season ready to kick off, Donal Buckley reminds us that the most important item that you can pack in your suitcase for that break overseas is the right insurance policy — but before committing, be aware of what each policy offers.

 WITH the holiday season now getting into full swing, one of the items that holiday makers should remember before they head off is to take out travel insurance.

In the last 12 months, the cost of this type of cover has been slashed as new players have entered the market.   Next month a new on-line insurance website will be launched with what will be the keenest rate in the country.  Annualmultrip.com — which is linked to Blue Insurance — plans to introduce an annual multi-trip worldwide rate of only €21.99 for an adult and €42.99 for a couple/family.   This is half the current rate being offered by one of the current market leaders, VHI, and it also compares favourably with the keenest rates currently on the market from Brassington Insurance, another Irish company, whose travel cover ranges from of €32 for a single adult to €57 for a family.  Such keen rates are only provided to those who already have medical insurance from health insurers such as VHI or Vivas Health.   Both VHI and Vivas majority shareholder AIB also quote keen rates for multi-trip cover. 

Some insurers also offer discount rates to different types of customers.   For instance, the Annualmultitrip.com and the AIB rates are only available to those who apply online.   Even allowing for the AIB online discount, the bank charges €43 for a single adult, €61 for a couple and €84 for a family.  VHI's multi-trip worldwide cover ranges from €49 for an adult under 65.

Brassington also offers discounts for certain trade union and credit union members.  Nevertheless, such discounted products can be more expensive because they may offer higher levels of cover such as covering winter sports equipment.  Like in many consumer sectors, the difficulty about the keenest prices is the limits that are on the cover.  For instance, some insurers limit the family cover to two adults and one child, whereas most will cover two children in a family.  AIB has no limit on the number of children.

Apparently there are a variety of reasons that travel insurance has become cheaper and a key one is that more people are travelling more often so the percentage claims relative to the amount of travel has fallen.  Increased charges for baggage, more short breaks and the availability of washing facilities in holiday homes have meant that people are bringing fewer items as well as fewer valuables away with them, and so less items are likely to be damaged or stolen.   With credit cards acceptable in more outlets, fewer people carry cash.

However, more people are travelling for sport activities such as ski-ing and golfing and many will bring their own sports equipment such as golf clubs.   Most basic travel insurance packages will not cover such equipment and some may not cover against accidents related to your own equipment.   So holidaymakers need to double check what is covered by their policies and the amount of cover. The amount of cover can also vary and, for those who insist on bringing their family silver and jewellry with them, they should also check that they have adequate cover.

Part of the problem with travel insurance in the past was that most people forgot about it until the last minute.  Nowadays if a person brings their laptop computer they can even sign up to buy their travel insurance while waiting to board at the airport.

The VHI is one of those which operates a phone service. 

 With multi-trip annual cover, there is no need for the last minute panic or a frantic phone call to the insurance broker as these cover numerous trips during the year.  However, there can be a limit to both the number of trips and the length of stay for any one trip.  With Annualmultitrip and AIB, the maximum stay for any one trip is only 31 days.   With Brassington, the limit is 45 days, while with VHI and AA the limit is 60 days.   There can also be limits placed on the number of days in the year for which a person can be travelling and be covered.   With some the limit is only 180 days per year. Such limits may not suit people who spend the long Irish winter in their Mediterranean holiday home or suit backpackers who travel the world for a year.

For the backpackers, AIB has a special package.  For pensioners, there can also be a surcharge. For instance, VHI charges €40 extra for those aged over 65.    Knowing how insurers can often use the fine print as an excuse not to pay out on claims, it is vital to check that the policy you are buying suits your specific needs.

Unfortunately, rates are so keen these days that fewer insurance brokers are bothering to sell travel insurance, so it is even more difficult to get independent advice as to what is the best policy for you.

Theft shook me up, but I was sure of insurance

LAST year Corkwoman Ann Harrington got a nasty shock while on holiday in Quinta da Lago in Portugal. Then she got a pleasant surprise when she returned home.   Located in the Algarve, in the south of the country, Quinta da Lago is a rather sedate, up-market enclave, almost reminiscent of Foxrock except with sun.   Like Foxrock, it’s the sort of place you will rarely see a lager lout. So Ann felt very safe when she went for a drink with some friends.

However, when it came to buying her round she dipped into her hand bag only to get a shock. Her wallet and cash had disappeared as had her digital camera, cigarettes and her Laser card.

“I was extremely upset, partly because I had no access to cash and partly because I felt so powerless,” she explained.

Ann reported the theft to the bar manager and to the police. The manager said it must have been someone extremely expert to have been so selective and yet steal the cash from practically under Ann’s nose.

She also reported to her insurance company AIB which she chose for its 10pc discount for booking on-line and a further 10pc for already having medical insurance.

“I have been paying insurance of different types for 20 years and never before have I made a claim. But I also have friends who made claims with other travel insurance companies and they have been treated quite rudely.

“I must say that AIB were very sympathetic in their response and advice. When I submitted the claim there was no inquisition. The bank simply asked for a copy of the police report and promptly reimbursed me for the loss of the cash and the camera.

“I was also fortunate the thief did not attempt to use the Laser card.”

  - Donal Buckley, independent Newspapers

Our Destinations