CMFAS PGI Travel Insurance question: travel policy's medical

CMFAS PGITravel Insurance

A traveller has both a travel policy's medical section and an integrated health/hospitalisation plan, both indemnity-based, covering the same overseas bill. What applies?

A The traveller may claim the full bill from both plans, since both premiums were paid
B Both plans are cancelled for overlapping cover, so the bill must be paid personally
C Contribution, so the same loss cannot be recovered twice from two indemnity policies
D Only the health plan can pay, because overseas bills fall outside travel medical cover

Show the answer and explanation

Answer: C. Contribution, so the same loss cannot be recovered twice from two indemnity policies

Travel cover can overlap with other cover such as an integrated health plan; where benefits are on an indemnity basis, contribution means the same loss cannot be recovered twice from two indemnity policies.

Common mistake

Thinking overlapping indemnity plans allow double recovery of a single medical loss.

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CMFAS PGI Travel Insurance question: travel policy's medical

Answer: C. Contribution, so the same loss cannot be recovered twice from two indemnity policies

Common mistake

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CMFAS PGI Travel Insurance question: travel policy's medical

Answer: C. Contribution, so the same loss cannot be recovered twice from two indemnity policies

Common mistake

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