More than 60% of Malaysians face vacation risk due to lack of travel insurance

Misleading perceptions lead to low uptake of insurance for overseas trips, say experts

More than 60% of Malaysians face vacation risk due to lack of travel insurance

Insurance News

By Gabriel Olano

The majority of Malaysians are aware of travel insurance, a survey has found, but very few are willing to actually buy it.

According to a survey by Tune Protect Insurance, 80% of Malaysians know about travel insurance, but less than 35% of those who know are willing to purchase it, meaning about 65% of them would knowingly expose themselves to uninsured risks while outside the country.

According to Tune Protect CEO Razman Hafidz Abu Zarim only 34.8% of respondents expressed willingness to purchase travel cover, even for long-distance travel and high-risk destinations.

“They understand the importance of the insurance,” Razman told reporters. “However, only a few actually purchase it. This is due to people having the perception that nothing will go wrong.”

He added that many do not realise the benefits of travel insurance, which is effective from the moment airline tickets are purchased until the insured arrives home. It also covers medical emergencies abroad, and some comprehensive policies also cover terrorism or hijacking incidents.

A local travel agency manager agreed with Razman, saying that many people do not choose to buy travel insurance due to the belief that nothing will go wrong on their trip.

“I believe Malaysians consider travel insurance as an option rather than an obligation,” Naim Isa, tour manager of Glocal Travel, told the Malaysian Digest.

“Although they are aware of the importance it carries but I feel they only know the surface of how important it is rather than knowing what it actually covers,” he said. He also added that some people think that their life insurance is adequate.

As he is in the travel industry, Naim shared that he opts to purchase an all-year travel insurance policy for MYR260 (US$62). This is an option for frequent travellers, and may end up cheaper than buying cover on a per-trip basis.

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