Could choosing the wrong insurance mean wasting your money? Discover the 6 common travel insurance claim rejection traps.

The Insurance Complaints Bureau recently announced that it received a total of 857 complaint cases relating to travel and medical insurance in 2025, representing an annual increase of approximately 32.7%. Meanwhile, recent reports of Hong Kong residents falling ill while attending study programmes in the Philippines and having their claims rejected, together with Cathay and Hong Kong Express reducing flights due to fuel surcharges, have prompted public concern over TravelCare’s coverage and terms.

Behind the complaint figures lies a deeper issue: consumers assume that TravelCare is straightforward and does not require close examination, only to discover a large number of grey areas in the policy terms when something goes wrong. 10Life provides an in-depth analysis of six common claim rejection traps, helping the public truly understand what they are buying before setting off.
 

Among the 447 cases concluded by the Insurance Complaints Bureau, 124 complainants ultimately received compensation, involving total compensation of approximately HK$13.6 million. As travel patterns involving travel to different destinations have changed, hybrid travel (such as study tours and working holidays) has become increasingly common, creating a gap with standard travel insurance policies and increasing the risk of claims being rejected. 

Trap One: General TravelCare Does Not Cover Study Tours or Working Holidays

Most TravelCare policies provide cover on the basis that the trip is solely for leisure or business travel. Trips undertaken for study tours, voluntary work, working holidays or similar purposes are generally not covered. Insurance companies generally assess the “primary purpose” of the entire trip. Even if you are travelling on a tourist visa and the itinerary includes a substantial amount of leisure activities, a claim may still be rejected if the main arrangements are deemed to be for study.

10Life recommends: Those undertaking study tours or working holidays should purchase specialised insurance, such as “Overseas Study Insurance” or “Working Holiday Insurance”, and should not assume that general TravelCare is sufficient. Before purchasing a policy, you may proactively ask the insurance company in writing to confirm whether the nature of your trip meets the definition of the cover. 

Trap 2: If a flight cancellation is a “business decision”, the insurer will not pay under any circumstances

TravelCare’s “Trip Cancellation” and “Flight Delay” cover generally only applies to force majeure events such as severe weather, natural disasters or mechanical failure. If an airline cuts flights due to fuel prices or operational considerations, this is considered a business decision and is not covered.

10Life’s advice: If flights are cut, first check with the airline regarding refunds and free changes; when booking your flight, you can choose a flexible fare type to make it easier to amend your itinerary later.  

Trap 3: Flight delay terms vary considerably and may affect your claim

“Flight Delay” may seem simple and easy to understand, but after analysing 14 major TravelCare policies on the market, 10Life found that insurers use different calculation methods, directly affecting whether a claim can be successfully made: 

As mentioned above, QBE only covers “departure delays”; if a flight departs on time but is disrupted en route, it will generally not qualify for a claim. The minimum triggering duration for Blue Cross, MSIG and Prudential is 5 hours, which is shorter than the 6 hours commonly seen in the industry. In addition, most policies stipulate that where connecting flights are involved, delay durations for each leg cannot be accumulated. Flight delays must also be caused by specified reasons (such as adverse weather or strikes) in order to trigger the cover.  

10Life recommendation: Verify how delays are calculated before taking out a policy. This is particularly important for itineraries involving multiple flight legs or transfers—make sure you understand whether delays for each leg can independently trigger a claim.  

Trap 4: Medical expenses must first be claimed under medical insurance, and travel insurance may only cover the shortfall

Many consumers assume that, as long as they have purchased TravelCare, they can make a claim directly if they fall ill or are hospitalised while travelling. In reality, however, some travel insurance policies contain a “coordination of benefits clause”, which requires policyholders to first make a claim under other medical insurance (such as employer-provided medical insurance or Voluntary Health Insurance). TravelCare will only cover the portion that has not been reimbursed.

For example, if you are hospitalised after contracting dengue fever from a mosquito bite while travelling, even if you have purchased TravelCare, you must first make a claim under your own medical insurance. Only the remaining medical expenses that have not been reimbursed may then be covered by TravelCare. This not only makes the claims process more complicated, but may also result in you missing the claims deadline if you are unfamiliar with the policy terms or procedures.

10Life’s advice: Carefully read the policy terms before purchasing insurance to understand whether coordination of benefits arrangements apply. If you also hold other medical insurance, you are advised to enquire with the relevant insurer in advance about the claims procedures and the order in which claims must be made, so as not to affect the final compensation.

Trap 5: High-risk activities and amateur sports — injury claims may be rejected

TravelCare generally excludes “high-risk activities”. Common exclusions include extreme sports (skydiving, bungee jumping and rock climbing), winter sports (skiing, or activities requiring additional cover), water activities (a licence is required for scuba diving), electric scooters or self-balancing vehicles, and competitive sports (such as marathons, which require separate specialised insurance).

Another easily overlooked grey area is the distinction between “amateur” and “professional”. If a traveller receives remuneration in any form—including prize money, sponsorship fees or endorsement fees—the insurer may regard the activity as professional in nature and reject the claim.

10Life’s advice: If your itinerary involves any sports or physical activities, verify before purchasing insurance whether they are covered under the standard policy, and enquire whether additional cover is required.

Trap 6: War and Civil Unrest — Coverage Is More Complicated Than You Think

TravelCare generally lists losses caused directly or indirectly by war as exclusions. However, after reviewing the major policies available on the market, 10Life found that some products include “notwithstanding” policy clauses which, under certain circumstances, “override” the original war exclusion clause. The key factor is the “timing” — namely, when the red/black outbound travel alert is issued.

If the Hong Kong Government issues a red or black outbound travel alert within 7 days before departure or after departure, the special clauses of some policies may mean that war-related losses could still be covered. In other words, if the destination is still considered safe when you depart (with no red/black alert in force), but war or civil unrest suddenly breaks out during your trip, you may still be covered.

In addition, there are two important details you must know:

• “Known risks” are not covered 
  If an outbound travel alert has already been issued before you purchase the policy or make your travel arrangements, the insurance company will regard it as a “known risk”, and any related losses will not be compensated. Do not rush to purchase insurance only after an alert has been issued in the hope of obtaining coverage.
• Non-war-related incidents may still be claimable 
  Even if you are in a war-torn area, if you suddenly fall ill or require hospitalisation there, the related medical expenses may still be claimable, provided that you can prove the incident is not directly related to the war (such as food poisoning or an accidental fall).

10Life recommends that, before travelling to areas with unstable political situations, you carefully review the policy terms and the level of the outbound travel alert (OTA), rather than making assumptions. Purchase insurance as soon as possible after confirming your itinerary, and take a screenshot of the alert level on the day you purchase the policy as important supporting evidence for any future claim. If you have any questions about the scope of coverage, you should proactively make a written enquiry with the insurance company. 

Many consumers focus solely on the premium when taking out insurance, overlooking key details such as the definitions of the coverage, exclusions and additional clauses, thereby significantly increasing the risk of facing gaps in cover when something goes wrong.

There can be considerable differences in coverage between plans on the market. Products with similar premiums may offer vastly different levels of cover, while premiums are not necessarily proportional to the level of protection. In some cases, even a relatively low premium can provide reasonably comprehensive cover, so it is worth spending a few extra minutes comparing coverage before setting off. The 10Life platform currently lists over 70 Hong Kong TravelCare plans, allowing members of the public to compare plans by destination, nature of the trip and type of activity, and choose the protection that best suits their needs.

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.