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With Respect to JP Earthquake, HKFI Says Insured Persons Will be Compensated for Cancel, Delay or Early Ending of Trips
Regarding the 7.1 magnitude earthquake in Miyazaki, Japan, the Hong Kong Federation of Insurers (HKFI) commented that insured persons are entitled to compensation for paid but unre...
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With Respect to JP Earthquake, HKFI Says Insured Persons Will be Compensated for Cancel, Delay or Early Ending of Trips
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Regarding the 7.1 magnitude earthquake in Miyazaki, Japan, the Hong Kong Federation of Insurers (HKFI) commented that insured persons are entitled to compensation for paid but unreturnable travel expenses, including air tickets, overseas accommodation and travelling expenses, if a natural disaster (including earthquake or tsunami) occurred at the destination during a specified period of time before the departure.

Insured persons will also be compensated for the loss of paid and unreturned airfares or accommodation expenses, or additional airfares or accommodation expenses incurred, as a result of an unavoidable natural disaster (including earthquake or tsunami) occurring in the insured place of travel which necessitates the insured person to interrupt their journey and return directly to Hong Kong.

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In the event of delay of arranged public transport due to a specified insured cause such as a natural disaster (including earthquake or tsunami), insured persons will be entitled to a cash allowance for the period of delay in accordance with the terms and conditions of the policy, or will be reimbursed for reasonable additional travelling expenses, such as hotel or airfares, incurred as a result of the delay.

However, travel insurance does not cover pre-existing medical issues, weather conditions (e.g. typhoon) and natural disasters (e.g. earthquake or tsunami). Therefore, if travel insurance is taken out after an earthquake has occurred or when the earthquake warning has been widely reported, all losses related to the earthquake will not be covered although the policy is still valid. Other than the known risks associated with earthquakes, other travel insurance coverage will not be affected, such as medical expenses incurred in case of colds and flu in the travel destination.

Whether or not the "Mega-earthquake Warning" issued by Japan is a pre-existing condition depends on the definition of each policy. "Pre-existing Condition" applies to all items of the whole policy (including the Outbound Travel Alert issued by the Security Bureau of Hong Kong). Generally speaking, an earthquake (including aftershocks or related damages as defined by the local government) that is part of the same event will be described as a pre-existing Condition. Earthquakes that are defined by the local government as another event may not be regarded as pre-existing conditions.

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At present, the Security Bureau has updated the additional information on Japan in the Outbound Travel Alert webpage in response to the "Mega-earthquake Warning" for some parts of Japan. If travellers have taken out travel insurance before the earthquake and decide to cancel their trips on their own after the issuance of the Alert, a small number of insurance companies will provide partial compensation, and the percentage of compensation will depend on the level of the Alert and the details of the policy.

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