As more African countries introduce mandatory insurance as an entry requirement, travel agents and their clients need to understand how these policies interact with existing cover, particularly when it comes to claims.
In October, Kenya introduced mandatory Inbound Travel Health Insurance, joining mainland Tanzania and Zanzibar. While South African passport holders are exempt from Kenya’s Electronic Travel Authorisation (ETA), they are not exempt from the mandatory insurance, as previously reported by Travel News.
In both Kenya and Tanzania, travellers subject to the requirement must purchase the designated inbound insurance, even if they already hold comprehensive travel insurance. While SADC residents are exempt from mainland Tanzania's requirement, this exemption does not automatically extend to Zanzibar.
This means travellers may hold two policies covering some of the same risks, raising questions about which insurer handles a claim.
Santam Travel says mandatory destination insurance should be viewed as an entry requirement rather than a replacement for comprehensive travel insurance.
“Mandatory insurance does not necessarily mean comprehensive. Mandatory cover may satisfy a country's entry requirements, but travellers should still consider the wider risks associated with their trip, including cancellations, disruptions, baggage, personal liability and potentially higher medical or evacuation costs,” said Santam.
“The important thing is to understand what each policy covers as well as the limits that apply.”
How do dual policies work?
Where two policies cover the same event or expense, claims are assessed according to the terms and conditions of each policy, including provisions relating to other insurance.
“Travel insurance is intended to indemnify a traveller for an insured loss, not place them in a better financial position than they were before the loss. Where two policies cover the same expense, a traveller cannot recover the same cost twice,” said Santam.
Anrieth Symon, Head of Travel at Bryte Travel Insurance, told Travel News that Bryte's travel insurance acts as the primary cover.
“This means we deal with the claim first and the traveller doesn't have to wait for the state-mandated insurer. We ask clients to share the details of any mandated insurance with us so that we can settle costs between insurers behind the scenes,” said Symon.
What if a policy limit is exhausted?
If the benefit limit on one policy is exhausted, the remaining costs are not automatically covered by the second policy. Any outstanding amount must still fall within that policy's terms, limits and exclusions.
Santam explained that where its policy provides cover for an event, the claim would be assessed according to its policy wording, taking into account any amounts already recovered from another insurer.
Bryte, meanwhile, prefers to settle the claim first, subject to its policy terms and conditions, before recovering any overlapping costs directly from the mandatory insurer.
Who takes the lead in an emergency?
In a medical emergency, the priority is the traveller's immediate health and safety.
“Travellers should seek emergency medical attention where necessary and contact the relevant assistance service as soon as possible,” noted Santam.
Symon said that if Bryte is the first responder, its medical team takes responsibility for managing the case.
“Bryte medical teams would make all medical and case management decisions throughout the process. As the first responder, we also issue the guarantees of payment, so treatment isn't delayed and, once all costs associated with the case have been settled, we will pursue recovery from the mandatory insurer where applicable.”
Traveller advice
Both insurers emphasised the importance of disclosing all existing cover at the outset of a claim.
Santam advised travellers to keep their policy numbers and emergency assistance contact details for both policies easily accessible. It also stressed the importance of contacting their South African insurer at the outset and disclosing whether another insurer has already authorised or paid any part of the claim.
“Travellers must share the details of any mandated policy with the emergency assistance team from the first call and request for assistance. Travel agents can help by reminding clients of this when they buy cover. We keep this information on file and only use it to recover costs once the case has been finalised, so declaring dual cover doesn't hold up the guarantee of payment or the traveller's treatment,” said Symon.
