PETALING JAYA: Standard travel insurance will offer little protection to Malaysians in conflict zones, as war-related losses and injury risks are universally excluded, says the General Insurance Association of Malaysia (PIAM).
PIAM chief executive officer Chua Kim Soon said events linked to war, including trip cancellations, delays and even emergency evacuations, are strictly excluded under standard policies.
“War is a standard exclusion. Malaysian insurers almost universally exclude claims arising from war, armed conflict, military action, civil war or rebellion,” he said.
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He said this in response to questions from The Star regarding the limitations of standard travel insurance in light of the Middle East conflict, which left many people including Malaysians stranded in the region due to travel disruptions.
Chua said the exclusion applies regardless of whether a traveller knowingly enters or remains in a conflict zone.
He pointed out that such clauses are clearly stated in travel insurance policy documents.
He urged policyholders to pay close attention to exclusions when purchasing travel insurance, in addition to understanding the coverage benefits.
“People tend to look at what is covered, but they must also understand what is not. One of the standard exclusions in all travel policies is active conflict zones,” he said.
Asked about policies for travellers who had purchased insurance before tensions escalated and who later travelled, unwittingly finding themselves in a war zone, Chua said the exclusion also applies to those who end up in such situations.
“If they unknowingly travel to an area experiencing conflict, the benefits under the policy will no longer be applicable. Any injuries sustained as a direct or indirect result of war such as being hurt while fleeing violence are excluded.”
Chua said claims unrelated to the conflict may still be considered.
“For example, if a medical condition arises that is not related to the war, then it may still be covered.
“The same applies to incidents like loss of luggage that are not linked to the conflict.”
On whether insurers are revising coverage or introducing special policies for high-risk destinations, Chua said that war risks are generally not insurable.
“War is too large and an unpredictable a risk for insurers to price. That is the biggest challenge. “How do you price a war?” he said.
Chua advised travellers to prioritise safety by avoiding conflict zones altogether and to check official travel advisories issued by Wisma Putra before making any plans.
He also urged travellers to ensure they have adequate medical coverage and to check with airlines on possible postponement or rebooking options if travelling to conflict-affected destinations.
“If you have already bought a policy and need to cancel, you may check with your insurer on a possible refund but this would be on a goodwill basis and not contractual.
“Ultimately, the best advice is to avoid the area if possible,” Chua said.
Senior insurance consultant Leonard Tan said travel insurance typically does not cover trips to destinations where official advisories have been issued against travel.
“These include war-torn areas and countries experiencing disease outbreaks.
“When a travel advisory has been issued but a person still chooses to go, then it is at their own risk,” he said.
Nevertheless, Tan said travel insurance remains a worthwhile investment when there are no such restrictions, as its benefits are often only realised during adverse events.
He added that travel insurance generally covers natural disasters such as floods, earthquakes and volcanic eruptions at a destination.
