INSURANCE

  If you travel outside your home country for business and pleasure, often, the health care plans you may have in your own country are not designed to provide coverage while you are out of the country. Whether you travel for business or pleasure, international travel involves risk. A travel insurance policy is a very good idea. It is possibly the best way to protect you against medical costs through illness or injury, against theft or loss of possessions and other accidences may occur during your travel period. With this in mind, we recommend you to buy travel insurances which provide exceptional coverage for international travelers. Cover depends on the type of insurance you buy. You should inquire for details before you decide to buy it. In addition, buy travel insurance as early as possible before you start you travel. In China, better travel agencies may buy insurance for their tourists.

China National Tourism Administration (CNTA) has issued a regulation in May, 2001 which instructs all travel agencies to buy insurance for their tourists, effective on Sep. 1st, 2001. According to the regulation, to secure tourists' interests and legal rights, especially those traveling to dangerous places, the National Tourism Administration issued a notice to require all tourism agencies to buy "travel agencies' liability insurance." This insurance policy will replace the original Personal Accidence Insurance to be a new legal-based practice in China.

According to the notice, tourism agencies must compensate tourists, or their dependents, for losses in the following situations:

If physical injury or death occurs, tourism agencies must shoulder related costs of medicines, medical treatment, travel and accommodation charges;

They must shoulder losses if tourists' belongings are lost, shattered or stolen;

They must shoulder all legal costs for their tourists if lawsuits are brought against the agencies.

The administration also stipulated related compensation standards:

The limit for compensation to a tourist on domestic trips is set at 80,000 yuan (US$9,700); and 160,000 yuan (US$19,400) for a tourist traveling overseas.

At the same time, the administration stipulated compensation limits for tourism agencies.

A tourism agency's annual compensation must be within 2 million yuan (US$243,902) if it is specialized in domestic trips, while an international tourism agency's limit is 4 million yuan (US$487,804). If tourism agencies launch highly risky travel services, they must co-ordinate with relevant insurance companies about related compensation standards and limits.

This newly enacted regulation will definitely improve the travel security environment in China.


 
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