What you need to know about Hong Kong travel insurance if Japan trip is hit by earthquakes

While only minor injuries were reported, Japanese authorities issued a tsunami advisory. Relatively small waves were recorded in some spots an hour after the earthquake.

Japan also issued a “megaquake advisory” hours later, warning of the possibility of another major earthquake in the coming week.

Hong Kong’s Security Bureau on Monday updated its existing amber outbound travel alert for Japan – issued in July 2012 – urging travellers to closely monitor the situation or exercise caution if already in the country. The amber alert is the lowest on a three-tier system.

2. What are basic guidelines on travel insurance?

Selina Lau Pui-ling, chief executive of the Hong Kong Federation of Insurers, told a radio show on Monday that most travellers would be covered if they took out an insurance policy before Thursday’s earthquake struck.

“The boundary line is drawn on August 8,” she said, warning that those who took out their plans after last Thursday might not be covered, stressing the basic principles of insurance policies were to cover potential and unknown future contingencies.

She also explained that it would depend on the judgment of Japanese authorities if any quake that occurred after August 8 was considered an independent incident or an aftershock.

Lau also urged travellers to check with their insurers if they had any doubts before departing and to get into the habit of buying travel insurance as soon as a trip was confirmed.

3. What if I bought insurance after the quake but before the government’s warning?

According to a memo issued by the Hong Kong Federation of Insurers (HKFI), most policies bought after the quake will not cover any related incidents.

So, while the plan will still be valid for other future unforeseen circumstances, such as medical expenses from injuries or sickness during the trip, it will not cover decisions to change plans following the Japanese authorities’ megaquake warning, or the Hong Kong government’s updated amber alert.

Some insurance companies may provide partial compensation though, with the amount depending on the alert level and policy terms.

4. What if my trip is cancelled before it begins?

According to the HKFI, those eligible for coverage and who need to cancel their trips can be compensated.

The cancellation should be within the specified number of days before departure as stated in their policies, and should be due to a natural disaster that is unavoidable at their destination. This includes earthquakes or tsunamis.

“Irrecoverable” travel expenses, including air tickets, overseas accommodation and transport costs are generally covered.

5. What about holidays that are cut short?

If an insured person at an insured travel destination comes across a natural disaster and has no choice but to curtail their trips to immediately fly back to Hong Kong, the loss from unused air tickets or accommodation fees, or the additional air tickets or accommodation fees incurred, can be compensated.

6. And what if my trip is delayed or postponed?

The HKFI says that if scheduled public transport is delayed due to a covered reason such as natural disasters, including earthquakes or tsunamis as specified in the policy, the insured person can receive a cash allowance based on the length of delay, or be compensated for reasonable additional travel expenses such as hotel or air ticket costs.