Malaysian Association of Tour and Travel Agents (Matta) president Datuk Mohd Khalid Harun said under the new travel insurance scheme, travellers can be insured up to 20 areas of coverage including eight in critical areas.
The eight areas include medical and hospitalisation, emergency medical evacuation, reimbursement of deposits or full payment of air tickets or tour packages, repatriation of mortal remains, compassionate visitation benefits, accidental deaths, permanent disablement and 24 hours emergency hotline.
“Outbound travel insurance will be made mandatory effective March 1 for Matta members selling outbound tour packages of transportation via air, sea and coach from Malaysia.
"It will be compulsory for all tour and travel agencies to offer this new scheme,” said Mohd Khalid after presenting appointment letters to six insurance companies at the launching ceremony of the Travel Insurance Scheme by Matta at Matrade Exhibition & Convention Centre here yesterday.
He said Matta had received numerous complaints from public who faced trouble bringing back their loved ones who had died abroad.
“This can go a long way for those who struggle to settle the high cost of medical bills while on holiday overseas, or for lost luggage and travel delays.
“You want to enjoy your vacation with your loved ones and come home safe and sound. You want to have fond memories of your holidays and have some money left for your daily expenses so that you can start saving for your next vacation,” he said.
Mohd Khalid said there have been countless cases where travel agents became insolvent or absconded with the hard-earned income of consumers.
He stressed Matta has been pushing to make travel insurance mandatory to protect the interest of customers.
When asked if action will be taken against those MATTA members who flaunt the law, Mohd Khalid warned they will be referred to the Tourism Ministry.
Under the new travel insurance scheme, coverages will apply based on its duration, type of coverage and destination. “For example for travel duration up to five days, domestic travellers need only pay RM10, RM20 within Asia and RM35 in other countries,” he said.
When asked about credit card facilities offering travel insurance, Mohd Khalid said it was up to consumers to choose which scheme they preferred.
He also said the travel insurance scheme is open to foreigners are here for a holiday.
Consumer groups query scheme’s worth
Federation of Malaysian Consumers Associations (Fomca) president N. Marimuthu told The Malay Mail the public should have the option of choosing any type of travel insurance including using one’s own insurance.
“While it is a good idea to offer travellers such insurance packages, consumers should be allowed to decide if the insurance offered suited them.
“The terms and condition of the insurance should be clear and must benefit consumers. I use my own travel insurance as it is tailored to suit my needs.
“Consumers must also see for themselves if their personal credit card facilities meet their expectations in terms of coverage,” he said when asked to comment on the move by Matta.
Meanwhile, Consumers’ Association of Subang and Shah Alam, Selangor president Datuk Dr Jacob George said the public must be careful not to incur extra cost.
“Most credit cards would cover travel insurance and it is important to make sure that they are not charged extra.”
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