Travel Insurance

By Prof. George S. Mentz, JD, MBA, CWM

07 January, 2007

Travel Insurance

Travel insurance coverage for tour cancellations, trip accidents and vacation delays is very specific. Vacationers should ask to see the actual policy rather than relying on a brief brochure.

Travel insurance usually covers trip cancellations, delays and cancellations due to:

Unexpected sickness, injury or death of the insured or a family member A financial default of a tour operator Bad weather or natural disasters that close travel services Other circumstances "which could not have been reasonably foreseen

There is usually a pre-existing condition clause in the policy that does not allow people with an on-going health problem to use that particular illness to make a claim. To avoid pre-existing condition exclusions, many travel insurance policies must be purchased within a certain number of days of the trip.

Insurance coverage for lost or damaged luggage may also be offered with a travel policy. However, items such as cameras, cash, jewelry, medicines and sporting goods are not covered under travel policies. Also, depending on the age of the luggage, the value may have depreciated and the insurance company may offer little or no compensation. It is also a good idea to keep a list of items that are packed in the suitcase in order to remember every item in case a claim must be filed.

In addition, carrier-caused delays or cancellations including airline labor strikes are usually not covered. However, an unexpected strike or act of terrorism may be covered, depending on the policy. Also excluded are health and accident situations such as suicide, risky sports, pregnancy and financial problems that result from bills incurred from the trip or business or contractual obligations that aren't met.

Everyone purchasing travel insurance should read the list of exclusions carefully. Ask the travel agent or salesperson to explain anything you do not understand and ask them to provide a document with all the terms and conditions clearly outlined and clarified.

Often companies that market travel insurance are not the actual insurers. The actual insurer, or underwriter, must be licensed and therefore the state in which the policy is purchased has jurisdiction in case of disputes.

Please be careful and read your policy and exclusions.

About the Authors
George Mentz is a licensed attorney and is trained in Internatinal Law and Business. Mentz has an earned MBA from an AACSB Accredited Business School and holds a Doctorate Degree or Juris Doctorate Degree from an ABA Accredited USA Law School. Prof. Mentz has faculty appointments and credentials in Silicon Valley, Miami, Chicago, Denver, Hong Kong, Singapore, and The Bahamas. . Prof. Mentz is a consultant providing expertise to Fortune 100 companies in several countries. The first person in the United States to achieve "Quad Designation" Status as a JD, MBA, licensed financial planner, and Certified Financial Consultant. Prof. Mentz has authored/published over 15 Books and has been featured or quoted in the Wall Street Journal, The Hindu National, El Norte Latin America, the Finanical Times, The China Daily, & The Arab Times. His research, publications, and speeches have been syndicated into over 100 countries. Prof. Mentz has recently been elected to the advisory board of the GFF Global Finance Forum in Switzerland and the World E-Commerce Forum in London, England. He also is on the Advisory Board of The ERISA Fiduciary Guild. Mentz was Editor and Chief for the Original Tax and Estate Planning Law Review at Loyola University (A Loyola University Chartered Organization). One of the First Lawyers in the USA to be credentialed and compliant to teach law in all 50 states in law school, graduate and undergraduate colleges and universities. Holds professor faculty appointment at Graduate LLM Law Program . Prof. Mentz has established Certification and Executive Training Accreditation Programs in over 50 Countries around the world including : UK, China, Mexico, Africa, Singapore, Taiwan, USA, Bahamas, India, Russia, EU, Philippines, Saudi Arabia, Canada, Vietnam, The Bahamas and more. General Counsel and Attorneyand Board of Standards Chair Prof. Mentz has recently been awarded a National Faculty Award, a Distinguished Faculty Award and a Meritorious Service Medal for Charitable Service. Prof Mentz has taught over 150 college and graduate courses in his faculty career.