Thailand is among the first nations worldwide to consider making accident and health insurance compulsory for foreign visitors. But given travel insurance is often seen as an optional extra, is it really worth paying for?
Insurance, admittedly, is usually the last thing to be packed before a tourist rushes off on vacation. But with rising healthcare costs, unpredictable travel disruptions, and increasingly complex itineraries, it is increasingly becoming a priority.
Thailand’s approach
In the last month, Thailand has been reported by among others, the Bangkok Post, to be considering new conditions for foreign visitors entering the country. The key is whether that would require foreign visitors to carry accident insurance. This comes amid hospitals reporting growing volumes of unpaid medical bills linked to the country’s tourism sector.
Health and tourism officials are said to be reviewing options that would make accident insurance a condition of entry for international tourists. The issue has been driven by cases where uninsured foreign patients receive emergency treatment in destinations such as Phuket and Chiang Mai but are unable to pay.
Under existing practice, hospitals provide urgent care regardless of a patient’s financial capacity, leaving facilities to absorb the cost when visitors lack coverage. However, the Ministry of Public Health estimates unpaid hospital bills from foreign patients amount to at least 100 million baht annually.
Instances cited rising road accidents, often involving tourists taking to motorbikes for the first time and not experienced in handling the often chaotic road conditions. Alcohol and drug consumption can also increase the likelihood and severity of accidents.
If implemented, a mandatory insurance requirement could shift much of this financial burden from public hospitals to private insurers, including global travel insurance providers and regional carriers operating across Asia.
Travel Insurance: Costs v Risk
For the most part, when weighing up insurance, it is not necessarily the insurer but whether insurance is worth the cost relative to the amount of money being spent on the actual vacation.
Travel insurance is relatively inexpensive when compared to the overall cost of a trip. Policies, on average, cost about 5% of the overall holiday and travel spend.
Given the costs, it’s understandable that some travellers opt out and risk it rather than be covered. Often, the argument is why bother. However, this saving has to be weighed against what could go wrong and the extent of those problems.
Medical Costs
Medical emergencies abroad often claim a major proportion of travel insurance claims. They are also the most expensive and problematic for travellers.
Given that a person is uninsured, they could well run up bills costing thousands in their local currency, and without the ability to pay for it. If a hospital stay in a foreign country runs into weeks, then that cost could be monumental. The evacuation from a foreign country back to their home could cost $50,000 or more.
In high-cost destinations, even a minor incident can be financially devastating. In the US, healthcare is among the most expensive globally, and many foreign visitors must pay upfront before treatment. In Europe, costs are often lower and sometimes partially covered for EU residents, but travellers from outside the region still face significant out-of-pocket expenses.
The stark choice: is it better to spend a small percentage of a vacation on insurance, or risk a bill that could run into thousands and one you could be liable for paying off in the long run?
Trip Cancellations
Another bugbear for many travellers is the problem of managing flight cancellations or delays, which can have a knock-on effect for their planned vacation, such as missed connections, additional transport costs, and hotel rebooking fees.
Imagine booking an expensive holiday, including flights, hotels, and tours, all prepaid and non-refundable. Then, days before departure, illness or a family emergency forces you to cancel.
Without insurance, travellers could lose their budget spend. With insurance, most or all of those costs will be reimbursed, depending on the policy’s conditions.
Lost Property
Lost luggage may seem minor compared to medical emergencies, but it still carries a real financial impact. The hassle of replacing clothing and essentials, as well as electronics or valuables.
While airlines offer compensation, it’s often limited and slow to process. Travel insurance provides faster reimbursement and broader coverage.
Travel Insurance: It Makes Sense
Even with the geopolitical climate, where regional conflicts can and will affect travel, as well as climate change, airline reliability, and even where you are considering travelling, insurance is a small price to pay.
Yet, less than 40% of travellers buy insurance, leaving the majority exposed to potentially significant financial risk.
Travellers should seriously consider insurance if they are planning an expensive or long-haul trip, travelling to nations with high healthcare costs, or taking multi-destination or complex travel stays.
Travel insurance remains a classic risk management decision. For a relatively small percentage of your trip cost, it protects against unpredictable scenarios that could otherwise derail a holiday and your finances.
Andy Probert is a freelance journalist whose work about global travel news, aviation, business and human-interest features has appeared internationally in print and digital formats.
