Rosemary McCracken
Sun
In April 2008, Ed Doucet was biking down a mountain in Majorca, Spain, at 50 km/h when a tire became caught in a rut in the road. He flipped over the handlebars, landing on his pelvis. The damage: three pelvic fractures and four cracked ribs.
Doucet, 33, found out first-hand that when a medical emergency arises outside Canada, travel insurance is a traveller’s best friend
In fact, travel insurance is the most important item to pack on any foray outside Canada, even a day trip across the border. If you find yourself in a hospital in the U.S. or abroad without medical coverage, the bill could take a huge chunk out of your savings.
In Doucet’s case, five days in hospital in Majorca came to $6,300.62. His stay had to be extended until his condition stabilized, which meant purchasing a first-class airline ticket home. Add in the cost of ambulance transportation from the hospital to Majorca‘s airport, ambulance in London from Gatwick Airport to Heathrow Airport, and another ambulance ride from Toronto to Brantford, Ont., where Doucet lives and his return trip came to $11,264. His insurer, RBC Insurance, sent a Toronto nurse to Majorca to accompany him home — for another $5,162.88. The total bill rang in at $22,727.50.
“And I paid $63 for 11 days’ coverage,” says Doucet. “It was probably the best $63 I’ll ever spend.”
Many Canadians are not aware of the gap between what medical services cost abroad and what their provincial health plans allow towards these bills. The provinces partly cover hospital stays outside Canada, but some pay nothing toward specialists’ fees, prescription drugs, X-rays or anesthesia. The province of Ontario paid $974.20 towards Doucet’s medical bill, a faction of what his hospital stay cost.
“Our surveys show only about 60 per cent of Canadian travellers buy travel insurance,” says Moscou Cote, vice-chairman of the Association of Canadian Travel Agencies in Montreal. “We assume they are covered through their credit cards or their employee benefits. But we really don’t know.”
Travellers may assume they have more coverage through their credit cards and work benefits than they really do. Length of stay outside Canada is a common limitation; if you’re away longer than the limit, you won’t be covered.
They may also set family limits, adds Stan Seggie, president and CEO of RBC Insurance’s travel division in Toronto.
“If there’s a $3,000 family limit for trip cancellation or interruption coverage, it may not be enough for four or five airfares home,” he says.
Before you fly out, find out exactly what your credit card or your employer’s group plan covers. If necessary, top it up with travel insurance.
Travel insurance typically covers you in three areas:
– Trip cancellation or interruption
If your health, a death in the family or problems at home such as a fire or flood prevent you from going on a trip after you’ve paid for it, this coverage will help you recover this cost.
“It will also pay for your trip home if there is a natural disaster such as a hurricane at your travel destination,” says Robin Ingle, president of Ingle Insurance, a Toronto-based managing general agency, which acts as a bridge between insurance advisers and the company that underwrites the policy.
– Baggage
This protects you against the cost of lost, stolen or damaged luggage.
– Health
This will pick up the medical bills incurred outside Canada that are not covered under your provincial health plan. Make sure the policy covers air ambulance for your return to Canada as it may be weeks until you are able to travel on a commercial airliner.
The cost of medical travel coverage varies widely, depending on the benefits, your medical condition and your age. But don’t choose a policy just because it’s cheap. You may save a few hundred dollars but end up spending thousands on extras not covered.
Some plans won’t cover certain medical conditions or people over the age of 80.
And don’t assume that youth is a protection against illness or injury.
“These are the people who are doing lots of sports, so they may be the most at risk,” says Cote.
Many plans require you to complete a medical questionnaire. You’ll need to disclose your medical condition fully and accurately. An incomplete or inaccurate application would give the insurer the right to turn down your claim.
And find out exactly what an insurer means by ‘stable medical condition,’ Ingle advises. “At one company, it may mean you haven’t been diagnosed treated, hospitalized or changed medication for certain conditions for the previous 90 to 180 days. At another, it may mean you haven’t been taking medication for these conditions for the previous 90 to 180 days.”
With your policy, you’ll be given the telephone numbers of emergency call centres in various parts of the world. Call the number as soon as illness or an accident occurs and you’ll be directed to a medical facility that specializes in the treatment you need.
“We also provide translation services,” Seggie says. “And we’ll guide you to the nearest Canadian embassy if your travel documents are lost or stolen.”
Doucet says he appreciated the arrangements the insurance company made as much as the expenses he was saved. “The ambulances, the wheelchairs — I didn’t have to worry about any of that,” he says.
And, if the unthinkable should happen, call the emergency number for assistance.
“Repatriation of remains” is a standard inclusion in most travel policies, but you’ll want to make sure it’s covered. If you or your travelling companion should die while travelling, the staff at the insurer’s emergency call centre will set everything in motion to assist the survivor. Without this coverage, he or she would have to find a local coroner to issue a death certificate, a local funeral home and a funeral home in Canada so that the two businesses can complete the necessary paperwork and arrange transportation.