What is terrorism insurance – and why is it necessary?
As the name suggests, terrorism insurance pays out if your travel is affected by an act of terrorism. A separate add-on policy is needed because standard travel insurance policies do not pay out for losses caused in this way.
Many people are not aware that losses arising out of acts of terrorism are specifically excluded by their travel insurance policy. Certain standard policies would pay if someone were injured or killed in a terrorist incident, but even they would not meet other losses, such as cancellation or loss of belongings.
With terrorist activity at high levels in many countries, there is growing interest in plugging the gap that exists. This is why MoneySuperMarket has teamed up with Safe Journey to offer terrorism insurance.
What cover is provided by Safe Journey?
The first point to remember is that Safe Journey is not a comprehensive insurance policy. It only covers the effects of recognised and acknowledged acts of terrorism – something which is normally excluded by standard travel insurance policies.
In other words, Safe Journey does not replace your main travel insurance policy, and it should not be bought instead of comprehensive travel insurance. It is an add-on designed to serve a specific purpose.
Crucially, Safe Journey will pay out if you are disinclined to travel if your destination is affected by terrorism before you depart.
This is the cover provided by Safe Journey if your travel is affected by terrorism:
• up to £1,000,000 for emergency medical treatment overseas, including transportation costs and returning you back to your home. In addition to this, it will cover evacuating you to a safe place and providing temporary accommodation if you are staying within 500 metres of where a terrorist incident occurs
• up to £3,500 for funeral expenses (burial or cremation abroad or returned to your home country)
• £25,000 in the event of death
• £100,000 in the event you are permanently disabled
• up to £2,000 if you choose to cancel the trip you have booked (certain conditions apply – full details are available on the Safe Journey website)
• up to £2,000 to cover reasonable travel expenses if you decide to cut short your travel and return home because there has been a terrorist event within state or province in which you are staying
• £20 for each 8-hour period that you are delayed in your travel on any pre-booked public means of transport up to a maximum of £200 in total. After 48 hours of delay on your outward journey to your destination, you may elect to cancel your trip and up to £2,000 will be paid for your cancellation
• up to £1,500 for your personal effects and possessions, including money, passports and travel documents
• up to £200 if there is a withdrawal of services for which you have pre-paid as part of your accommodation.
The maximum excess (the amount you pay towards a claim) is £100.
What is an act of terrorism?
For the purposes of this insurance, an act of terrorism is:
• an event which has been declared as such by either the UK Government or the government of the country where the act occurred; or
• an event deemed to be an act of terrorism by the insurance provider using the information available (where there is a delay in declaration by governments).
Is every destination covered?
Cover extends worldwide except for travel to, or from, or through these countries: Syria, Afghanistan, Somalia, Libya, Yemen, Iraq, Iran, Sudan, North Korea and Cuba.
Additionally, cover is not provided in any country or area where the UK Foreign and Commonwealth Office advises against all but essential travel or, against all travel.
Cover is provided in the UK for trips where accommodation has been booked and paid for.
What else do I need to know about Safe Journey?
You can either buy Safe Journey for a single trip (up to 180 days of continuous travel) or as an annual policy, providing cover on any number of separate trips during a 12-month period (maximum length of any one trip of 31 days).
Cover can be bought by an individual or by a couple or family group (children are those aged under 18. Children over 18 must have their own policy).
There are no age limits on the policy, and no medical screening requirements. Cover is available for holiday/leisure travellers and for those travelling on business.
How much does it cost?
For an individual, cover for a single trip starts at £4.96 per day. Cover for a trip of 180 days continuous travel would cost £53.73.
Annual cover is available £14.99.