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Pay more premium for lower coverage policy?

By Ms Ella Tan

I came across JS Lu's My Insurance Nightmare (9 July 2014) and would like to share my experience on the same insurance company,  ACE

I came to know and bought ACE "Savvy Traveller Plus" policy through Citibank promotion to their customers.

I joined a tour to India in August/September 2014 and encountered not one but two adverse weathers - landslides at Kargil, and flood at Srinagar (Kashmir). I came back 7 days later than originally scheduled.  I informed ACE and submitted my claim in September 2014.

They paid me separately in November (as they had to refer to senior management) for the medical claim and subsequently in December (also refer to senior management) for the forfeited Leh tour due to illness.

But they did NOT pay for the forfeited Kashmir houseboat and the additional expenses incurred due to adverse weather conditions. The claim officer stated that this is not claimable because it is not by a specified cause. This claim is payable if before commencement of the trip but not during the trip.

My friend, who went to India with me, also bought an ACE traveller policy but through Standard and Chartered. She paid a lower premium but received full reimbursement for the same claim.

Knowing my difficulty in contacting ACE, Citibank officer set up a 3 parties conference call and appealed to ACE claim officer for assistance, and, I also posed ACE claim officer the question of why my policy don't cover this claim when I am paying a higher premium while my friend's policy coverage is wider at a lower premium.

The claims officer either did not wish to or could not answer me as the line was conveniently cut off.

Adverse weather is one of the basic covers and should be for - before and during the trip - as in my friend's policy ,Got-It-Covered.

Case in hand - Pay more premium for lower coverage policy and pay less for a wider coverage policy

 

Response by ACE Insurance 

We refer to the letter by Ms Ella on 8 January 2015.

It is unfortunate that the flooding situation occurred, and we empathise with the anxiety and inconvenience that Ms Tan and her travel companions were subjected to. However, as Ms Tan has rightly pointed out, the flooding situation is not covered under the Savvy Traveller Plus policy that she had purchased, thus resulting in the claim being declined.

ACE Insurance Limited (ACE) works with a variety of partners, including financial institutions like Citibank and Standard Chartered Bank. The travel insurance products are carefully underwritten by ACE and aims to provide suitable coverage at affordable prices for our partners’ customers.

It is important to note that while both travel insurance products are underwritten by ACE, they provide different coverage and amounts insured, at different premiums. Generally the coverage for Savvy Traveller Plus is higher than that for Got-It-Covered, thus resulting in the higher premium.

For example, the Savvy Traveller Plus policy purchased by Ms Tan allows overseas medical expenses claims of up to $500,000, while that for Got-It-Covered is capped at $50,000. Similarly, Ms Tan would have been able to claim up to $3,000 if she had experienced flight delays ($200 per 6 consecutive hours), while her friend, would only be able to claim up to $1,000 ($100 per 6 consecutive hours).

There is not one policy that is better than the other, and we urge readers to consider their needs carefully when choosing the right travel insurance policy and to understand the terms and conditions well. We will also be contacting Ms Tan Lay Ing separately to resolve the matter.

Sincerely,

Mack Eng
Country President
ACE Insurance Limited