Travel insurance is a type of insurance that protects travellers from unexpected costs incurred due to travel-related events.
Like all other insurance products, travel insurance helps us manage risk by reducing the amount you have to pay out of your own pocket should something unforeseen happen. The most common risks associated with travelling include flight delays, diversions or cancellations (which may force you to look for your own accommodation and meals), loss/theft of personal items, lost or damaged baggage during transit and medical costs in the case of accidents or sickness.
There are also scenarios that could increase your risks, such as:
- Doing outdoor activities such as surfing, hiking, skydiving and more
- Travelling in a group or with elderly
- Renting a vehicle for a road trip
- Travelling to less developed countries
It is not mandatory for travellers from Singapore but it does help to give peace of mind when travel disruptions happen.