Zero Deductible On All Travel Insurance Policies A ‘wake-up’ Call Against Industry Complacency

BANGKOK - Oct. 27, 2014 - PRLog -- “We think consumers have had enough of insurance companies setting up rules that allow them to have their cake and eat it as well, and with travel insurance having a deductible or excess is just another case of this, which really infuriates some customers. We take the view that simplicity is what people want, and to us that means if you have a legitimate claim that is covered by our policy, then you are entitled to 100% of it”

One of the common features of the global insurance industry could be described as a lack of imagination, and with this there is a general acceptance in the industry that retaining the status quo is more desirable than change, with the result that some things that really do need to change are assumed to be 'normal' and not questioned.

At least that’s the view taken by international travel insurance portal ClickTravelCover, who are committed to challenging this perception, and who already are making waves in the industry by challenging accepted practices in travel insurance – for example by offering cover at standard rates to clients up to age 85, and automatically including a range of adventure and active sports like skiing, rafting, bungee jumping and scuba diving into their policies at no extra charge to the customer.

And the latest travel insurance industry ‘sacred cow’ to be led to the abattoir by ClickTravelCover is the standard policy deductible, or excess.

“There are few things that really irritate clients more than having to pay the first $25, or $50, or $100 of every travel claim, and this directly results in consumers concluding that travel insurance companies want to have their cake and eat it as well,” says David Christensen, Australian insurance industry veteran currently living in Bangkok, Thailand, who has been engaged to develop and launch ClickTravelCover.

“So, other than if you take up the optional rental car excess option which has a deductible element, as far as having a standard excess or deductible we just say no. Nil, zero, nothing, non, nada, nein, nyet, zilch to any deductible, excess, co-payment or however else it is described,” says Mr Christensen.

“That means if you have a claim that’s covered under the policy terms for $50, with ClickTravelCover you’ll be reimbursed $50 – 100% of the claim, while with most travel insurance companies you’ll be lucky to see a cent, and at best probably only 50% of this. That’s guaranteed to make most peoples’ blood boil!

“If your claim is $250, you’ll get 100% of that and not 80% like most companies will give you, and so on. And with so many travel insurance claims being for this sort of amount – this gives the customer some real advantages in terms of feeling they are being dealt with fairly,” he adds.

ClickTravelCover believes that the common use of mandatory deductibles in travel insurance ranging from US$25 - $100 is something that has become embedded into the way things are done, without challenge.

“There is a saying ‘if you always do what you’ve always done then you’ll always get what you’ve always got’,” says Mr Christensen. “It doesn’t make great English, but the point is inescapable, that it’s time the traditional travel insurance plan with a deductible here, and extra loading there, an age limit there and so on was retired, and new thinking is needed.

“And it’s not rocket science either. Offering travel insurance with zero deductible, the automatic inclusion of a laptop computer and active sports like skiing and scuba diving at no extra charge, and offering cover out to age 85 at standard rates is actually very simple. So obvious, in fact, that it seems to have not been taken seriously by an industry that appears to be in love with complexity,” states Mr Christensen.

“But the genie is now out of the bottle and we expect the industry will start to follow our lead over the next few years – because if they don’t, consumers will simply note with their wallets to embrace the new breed of simple, straightforward and consumer friendly travel plans such as ClickTravelCover has developed.”

ClickTravelCover (http://www.clicktravelcover.com/) is part of leading Asian based health/travel insurance specialist Pacific Cross Group, with the policies being issued by offshore insurer Pacific Cross Insurance Company (http://www.pacificcross-insurance.com/) and administered in Hong Koing by leading Third Party Administrator (TPA) International Administrators Limited (http://www.ialhk.com/).