Excellence Holidays, and over 300 travellers losing RM2.4 million (US$702,000) to gravitate the Malaysian Association of Tour and Travel Agents towards launching the Medic Evac insurance scheme.
MATTA president Ngiam Foon, however, said that this was not unusual as agency collapses in other countries, such as the UK and Hong Kong, had likewise spurred the industry leaders to resort to similar moves to protect travellers.
While there are numerous other insurance packages in Malaysia for travellers going overseas, Ngiam said that the Medic Evac insurance was the most comprehensive to date and the first of its kind in Malaysia.
“This scheme is not replacing any similar ones in the market. Instead MATTA designed the Medic Evac scheme to be an inclusive insurance coverage for outbound packages and tour packages that closes the gap missing in most travel insurance, which is medical, hospitalisation and repatriation (medical or in event of death). It is a cashless policy that covers costs of up to RM100,000.”
Underwritten by Kurnia Insurans (Malaysia) and RHB Insurance, the scheme is also affordable at RM7.50 per person for first three days and subsequently RM2.50 for each additional day of travel. However, Ngiam said the scheme’s highlight is the reimbursement of deposits or full payments of air tickets and tour packages in the event of registered tour operators in Malaysia absconding or insolvency.
“The claims for this are up to RM5,000 for per insured person,” adding that this benefit was added into this coverage due to the recent sudden closure of Excellence Holidays. Kurnia Insurans’ CEO Kong Shu Yin gave the assurance that there would be no delay in payments.
“We are linked up with the 2,100 MATTA member agents and we have set up a division to handle every case. Travellers can also buy the insurance online from us.” Ngiam said it was not mandatory for agents to sell the Medic Evac insurance.
Instead the association is encouraging the agents to factor the insurance into the tour packages, but with a waiver for the traveller to opt out of the scheme if he wishes.
The scheme currently is for packages booked through local tour agencies for overseas trips. Deputy Tourism Minister Dato’ Donald Lim said his ministry, together with MATTA, are looking at a similar scheme for domestic travellers.
“The focus right now is on overseas tour packages because the losses are higher. But we have not overlooked the fact that 16.5 million Malaysians toured locally last year.”
