“Air travel insurance on a gradual increase”-NicozDiamond
Noah Kupeta
Zimbabwe’s insurance industry is currently expanding and penetrating air travel insurance in their quest to outshine and compete with regional and international markets regardless of a myriad of challenges such as adverse weather conditions, political upheavals and unfavourable macro-economic fundamentals.
NicozDiamond Business Development manager Munyaradzi Kativhu said that while it is not a legal requirement to purchase travel insurance in most countries, Zimbabweans are becoming more aware of the need to get cover for medical expenses and financial losses that can be incurred traveling locally, regionally and internationally.
This has resulted in a gradual increase in the uptake of travel insurance over the past decade.
“With individuals being more mobile today than at any other point in Zimbabwean history, travel has become a huge part of business and personal life, exposing both businesses and individuals to financial risk with each trip. This has resulted in a gradual increase of the attractiveness of the travel insurance industry over the past decade,’ he said.
A survey conducted by this publication shows that although technical challenges within the industry pose some challenges, this has not deterred the industry is able to satisfy consumer needs and wants.
The success of the industry is attributed to the comprehensive role played by the media to inform and educate consumers on the need to purchase air travel insurance premiums.
Indeed, the Insurance and Pension Commission (IPEC), National Social Security (NSSA) and ZimSelector. Com are currently working with members of the media fraternity to increase the uptake and awareness of insurance products such as air travel insurance premiums.
Kativhu further said, “Yet, in what would seem the perfect conditions to sell travel insurance, we are still facing challenges in increasing uptake of this product.
He went on, “Despite the media’s focus on these risks, most travelers regard these incidents as one-offs that are unlikely to affect them on their trips
“There is need for travel insurers to hold awareness programmes to prove the value of travel insurance, ‘he said.
Unfortunately, most travellers as a result of ignorance and lack of education among a host of factors are not aware of the fundamentals of air travel insurance premiums and cover.
Research shows that flight insurance benefits those who either have no medical insurance coverage or are traveling outside the country.
Those without medical insurance will need to consider the health insurance they can purchase in a travel insurance policy along with flight insurance in case they are injured in an airplane accident.
More importantly, those with medical coverage may find that their health insurance policies do not cover them when they are outside the country.
If they are injured in an airplane accident, they will need the additional protection they can receive from flight insurance and travel medical insurance.
When purchasing a travel insurance package, people can inform their insurers of how much money they would like their beneficiaries to receive in the event that they are involved in a plane crash. They will, most likely, be able to purchase a policy for a significant amount of money for a very low cost and travel with peace of mind.
Sound legal and monetary fundamentals are equally important in the survival of air travel insurance as Kativhu explains.
“The enactment of statutory instrument SI 142 of 2019, which banned the use of the United States Dollar for local transactions resulted in travel insurers suspending the issuance of travel insurance policies whilst they hoped the decision would be reviewed.
“This left customers stranded as they could not access travel insurance locally.
“Benefits of travel cover are mainly enjoyed outside the country and hence claims on this cover are incurred in foreign currency as such travel cover policies were being issued in foreign currency’’, he said.
