Nothing Insurance: How much does overseas insurance cost and under what conditions?
Before the Corona era flight insurance was a simpler and cheaper matter, but the plague complicated matters and policies.
We dived into the details (this and it was not easy for us) and saw how much it will cost you (it will not be easy for you).
The detailed review inside
We are confused
Monday, 21 September 2020, 08:00
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If there is no change in the current closure procedures, thousands of Israelis are expected to flee Israel and fly abroad in the coming weeks, in favor of a ventilation that is so necessary for the mental posture of all of us. The problem is that the joy involved is mixed with an unexpected direction.
Due to the corona epidemic, insurance premiums have risen and the supply of insurance companies can be significantly reduced.
So how much does it cost to buy insurance today and what do you need to find out before choosing an insurer?
The last few months have been extremely challenging for insurance companies, which have suffered heavy losses, partly due to the complete halt of their significant revenue engine - travel policies abroad. Now, slowly and in a very measured way, they are once again offering the general public insurance coverage. In some cases, the cost is considerably higher than we were used to paying. This is not another 'small' expense, but a component that can sometimes make the family trip more expensive by hundreds of dollars.
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Every day abroad will cost quite a bit. Photo: Reuven Castro)
Adv. Eran Jakubowicz, an expert in insurance and tort law, a partner in the firm of Zvi Jakubowicz & Co., who handles hundreds of claims in the travel industry abroad, explains that adjusting the coverage in the policy to the risk posed by corona disease and determining the premium that reflects it was a very complex task. Significantly changes the level of insurers' liabilities.
In his estimation, "among the other things that made the matter difficult is the fact that there is still no orderly database of claims statistics, as there is with regard to other risks, so the actuaries had to rely on partial information collected while in motion."
Meanwhile, the demand for the new overseas travel policy is very low compared to last year. According to the Population Authority, only 54,754 Israelis went abroad this August, compared to 1.2 million departures last August.
And where did the Israelis go?
According to Zabar Insurance Agency, one of the largest insurance agencies in Israel, among the popular destinations, are Turkey, Greece and Croatia (which has meanwhile become a red state) along with Bulgaria and Germany.
Italy, which until a few months ago was a corona incubator, has also become a safe destination in recent months, certainly compared to Israel.
How much will our trip cost as a result of the premium jump?
At Harel, the premium that also includes coverage for locating and rescuing up to a ceiling of $ 5,000 in Corona is $ 6.35 per day, whether it is a 20-, 30- or 40-year-old guy. At Clal Insurance Company, the premium is cheaper: insureds aged 20- 40 will pay $ 3.22 per day.
The price for ages 40+ is slightly more expensive and stands at $ 3.37.
At AIG, customers of Bank Leumi, Isracard, MAX and American Express are entitled to 5 days of free insurance through the company, and starting on Friday, an amount of $ 6.6 per day will be paid for the coverage. And how much will you pay Passportcard? $ 3.3 per day, term The aforesaid ages (20-40).
This is what you will pay in the various companies.
Click on the link for the full table
For the full data
Overseas Travel Insurance Comparison Table: All data, click here
In the absence of relevant information, companies price based on a missing database.
Is the increase in the price of policies committed to reality?
Is this a necessity, or is it an opportunity to reduce their losses on the captive Israeli customer base?
According to Yaron Bar-On, CEO of Hi-Tech Insurance Agency and former VP of Mivtach Simon, the reason for the significant increase in insurance prices is the dramatic change in the level of risk for the insurer: "Corona disease can suddenly worsen the insured's condition." "Also situations of abrupt flights abruptly. Perhaps later, subject to the claims data collected by the insurers, there will be a change, but now, in the absence of a critical mass of relevant information, they are forced to price their risks on the basis of a missing database."
However, not only Israelis are expected to pay much more for purchasing a travel policy abroad. An examination of the global insurance market reveals that this is a general trend, but in many cases the prices they will pay are cheaper. In fact, unlike in the past, Israelis can buy insurance today. In a foreign company, on the face of it, this is a much more lucrative deal, but according to Rafi Maman, head of life insurance and travel abroad at Sabar Insurance Agency, With reduced coverage.
Thus, for example, many of the foreign policies will not fly the insured to Israel at their own expense, as long as there is a need for further treatment in Israel. "
Unlike in the pre-Corona days, when all insurance companies provided insurance coverage for stays in almost any country. , So the task of locating the insurer has become a little more complex.In Harel we note that the premium is the same as all the insured countries, except the USA and Ukraine, to which it refuses to fly for sure.
The passport card also has the same policy.
Clal currently provides a uniform tariff for all countries, but further reduces the list of insurance-covered destinations.
It does not insure travelers to all countries of the Americas and Ukraine.
At AIG, the policy is different, where insurance can only be purchased for countries that are defined as green.
To take out insurance abroad? Absolutely not recommended. Rafi Maman
One of the necessary coverages for flying these days is reimbursement for staying in isolation abroad. According to a survey we conducted, all the aforementioned companies cover this, some for an additional fee, with the coverage ceiling varying from company to company. At Harel, coverage can be extended to $ 5000 in insured cases. Will have to extend the stay at the destination due to illness or symptoms.The coverage, it should be noted, is given to the insured or a family member.In Clal, the coverage does not require additional premium payment and is limited to a ceiling of up to $ 100 per day with no days limit and flight date change (up to $ 1,500). AIG has a lower coverage ceiling - up to $ 3,000. Passport card coverage also requires an additional premium payment, where the ceiling is set at $ 4,000 (up to $ 1,500 for the insured and $ 1,000 for a lender, $ 1,500 for a hotel. The company also states that the reimbursement will apply). From the date of its entry into isolation and not water, the extension of the original travel period.
Another aspect that must be examined before purchasing insurance is the coverage ceiling for hospitalization abroad due to coronary heart disease. 5 million.
Another issue you need to consider
It is the underwriting procedure that varies from company to company, depending on the age of the insured.
The intention is for the company to clarify your medical condition, and based on the answers, it decides whether to insure you and at what premium.
At Clal, insureds over the age of 70 will have to go through an individual procedure, as will PassportCard.
Due to the spirit of the period, AIG is adopting a stricter policy.
Anyone wishing to purchase insurance, without exception and regardless of age, will be forced to undergo an underwriting procedure based, among other things, on the details of the background illnesses.
The flight was canceled?
This is already a problem
And what if you had to cancel the trip due to a medical incident in Israel?
Here things get more complicated: both Clal and AIG refuse to cover this risk.
In Harel, on the other hand, this is possible, in exchange for paying an additional premium of $ 0.35 per day and up to a coverage ceiling of $ 400.
PepsiCard charges a much higher amount for this, no less than $ 4 per day, but the coverage ceiling accordingly - up to $ 4,000, as part of which they also cover a case of refusal by the airline to pick up a passenger due to suspicious symptoms.
Another change brought about by the Corona is the expense of automatic coverage and no additional payment of your luggage.
Today, this is subject to an additional premium.
At Harel, they offer a ceiling of up to $ 2,250 for $ 0.35 per day.
In general, they offer a similar route: $ 0.36 per day, with a ceiling of $ 2,000, when they emphasize that in this framework, your phone will be insured up to the amount of $ 400.
AIG is proud that customers of Isracard, American Express, MAX and Bank Leumi are entitled to free luggage coverage for 5 days, up to a maximum payment of $ 4,450.
And what about the sixth day onwards?
In Passportcard, the ceiling and premium are almost the same as the other companies: a payment of $ 0.5 per day, for which you will receive coverage for a maximum amount of $ 2,500.
Yes friends, the procedure is more complex than ever, and the gaps are also reflected in additional coverage.
Next, we dived into the difference in the limit of liability in third party coverage that covers your liability in the event that you caused damage, whether to body or property, through your negligence, and subject to local law that varies from state to state.
In Harel, you are given coverage without additional premium up to a ceiling of $ 150,000.
The ceiling is generally the same and if for some reason you choose to give it up (we do not recommend it) your premium will be reduced by an esoteric amount of $ 0.04 per day.
AIG and PassportCard also provide you with automatic coverage, but its ceiling is lower and stands at only $ 100,000.
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And again - this is the full table with all the covers.
Dubrovnik is nice, but Croatia has meanwhile become a red country and insurance prices may change
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Is there insurance coverage for the insured who declares that he suffers from background illnesses, which the Ministry of Health has defined as increasing the risk of a serious illness? Here too, as in the other sections, the picture is complex: in Harel this involves paying a variable amount, starting at $ 4.05 per day.
In general, on the other hand, the matter is reserved and it is claimed that they allow insurance to be purchased only for insured persons with a background illness in a stable condition (ie, a stable medical condition that has not been adversely affected in the six months prior to travel).
AIG refuses to elaborate and only notes that the underwriting policy has become more detailed and based on background illnesses, each case being examined on its own merits.
PassportCard advocates greater transparency in this regard, noting that there is an age-biased differential pricing as follows: By age 50, an additional premium of $ 3.54 per day will be charged.
Ages 51-60 will already pay an additional $ 4.4 per day.
People with a background illness aged 61-70 will pay $ 5 a day.
The door to seniors is not blocked, but this will be done subject to medical underwriting and the production of relevant documents.
And there is another matter.
At the end of the day, the corona does require special attention, but it is far from being a significant risk to travelers abroad. When examining the distribution of common claims, you find that there are several other aspects you need to consider when examining the quality of coverage given to you.
Jakubowicz Help us map out the most common claims filed under the policy.
In the claims hierarchy, urgent dental care is high.
Also loss of valuable equipment and delay in the arrival of the cargo ‘stars’ in the list of common claims.
Yes, the plague did not eliminate these phenomena from the world.
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