Published on
November 17, 2025
In a recent statement, Hong Kong’s Consumer Council issued a warning to residents regarding the importance of thoroughly examining travel insurance policies before making a purchase. This caution comes after multiple complaints were received about discrepancies between travelers and insurance companies over the terms and conditions of their coverage. The council has highlighted the need for travelers to be fully aware of policy definitions, coverage exclusions, and specific terms that may impact the success of a claim.
The Consumer Council stressed that several cases had been reported where travelers misunderstood or were misinformed about the scope of coverage. These disputes often resulted in rejected claims, leaving travelers frustrated and out of pocket. The watchdog emphasized the importance of comparing insurance policies carefully to avoid similar issues in the future.
Case Examples of Claims Disputes
One notable case involved a traveler returning to Hong Kong from Vancouver. After her baggage was delayed by 31 hours, she submitted a claim for compensation amounting to HK$1,500 (approximately US$193). However, the claim was denied. According to the insurance company, the policy only covered expenses for essentials such as clothing, toiletries, or other necessities during the delay, but this was only applicable if the baggage was delayed at the destination—not after returning home.
In this case, the insurance company argued that since the traveler had access to necessary items at home, compensation was not applicable. This discrepancy in the understanding of coverage terms between the insurer and the consumer led to a rejected claim, raising concerns about how the definitions in policies are often not clearly communicated to the buyer.
Another case involved a traveler on a multi-country European trip, where the individual experienced a flight cancellation due to industrial action while traveling from Italy to the UK. After purchasing a new ticket, the traveler arrived 32 hours later than originally scheduled. Upon filing a claim, the insurance company stated that while cancellations due to industrial action were covered, the new flight purchased after the journey had begun was not eligible for reimbursement. The insurance company clarified that only flights booked before the journey started were eligible for claims under their policy.
Following this rejection, the traveler filed a complaint with the Insurance Complaints Bureau and the Consumer Council. As a result, the insurance company agreed to make a discretionary payment of HK$1,250 in compensation to the complainant, illustrating the challenges travelers face when coverage terms are not fully understood or explained.
Importance of Reviewing Policy Terms Before Purchase
The Consumer Council has urged all residents to be diligent when selecting travel insurance policies, especially when it comes to understanding specific exclusions or definitions that could impact the outcome of a claim. The council recommends that travelers consult with the insurance provider directly to clarify any uncertainties before purchasing coverage. This is especially important for activities such as high-risk sports or extreme activities that may not be automatically covered under a standard policy.
The council also advises travelers to retain all relevant documents related to their trip, including booking confirmations, flight tickets, hotel reservations, and receipts for purchases made during the trip. These documents can be crucial when submitting a claim as they serve as evidence of the travel details and the expenses incurred.
Key Terms to Watch Out For
Travelers are advised to carefully examine the key terms in their insurance policies, particularly terms such as “booked trip” and “journey.” The term “booked trip” may refer to any accommodation, transportation, or activities that were purchased before the trip began but are used during the insured period. On the other hand, “journey” often refers to a trip that originates from Hong Kong during the insured period. Misunderstandings of these terms can result in claims being rejected, even when travelers believe they are covered.
Moreover, travelers should understand the definition of “essential items” in their policy, as this could vary between insurers. One company may consider basic toiletries or clothing as essential for a baggage delay, while another may require additional documentation or receipts for reimbursement. Such discrepancies can be confusing, leading to rejected claims if not properly clarified.
The Role of Insurance Providers in Clarifying Coverage
Insurance providers must take greater responsibility in ensuring that their policy terms are clearly communicated to consumers. This includes providing easy-to-understand explanations of what is and is not covered, and ensuring that all exclusions are explicitly stated in the policy. In many cases, travelers may not fully comprehend the terms of their insurance, leaving them vulnerable to unexpected rejections when they need the coverage the most.
To mitigate these issues, the Consumer Council encourages travelers to actively engage with their insurers prior to purchasing any policies. This allows consumers to verify the coverage of specific events, such as flight cancellations, medical emergencies, or lost luggage, and ensures that they are purchasing a policy that meets their needs.
Recommendations for Better Consumer Protection
In light of these disputes, the Consumer Council has called for stronger regulations to protect consumers in the travel insurance industry. One suggestion is for insurance companies to provide more comprehensive policy summaries that clearly outline all terms and conditions, particularly for travelers unfamiliar with the intricacies of insurance language.
Additionally, the council recommends that policy documents be made more accessible and easier to understand, with an emphasis on clear definitions of key terms. Travelers should be provided with guidance on how to identify exclusions or limitations in their coverage and should be encouraged to seek clarification whenever necessary.
Final Thoughts
The Hong Kong Consumer Council‘s warnings serve as an important reminder to all travelers, both domestic and international, about the significance of understanding travel insurance before making a purchase. Claims disputes can be easily avoided if travelers take the time to carefully review the terms of their insurance policies, ask questions about unclear terms, and retain all necessary documentation throughout their travels. By doing so, travelers can ensure that they are adequately protected in the event of unexpected delays, cancellations, or emergencies, and can enjoy a stress-free travel experience knowing that they have the right coverage in place.
