Best Travel Insurance Malaysia – 2018 Ultimate Guide

Best Travel Insurance Malaysia – Ultimate Guide

Travel Insurance is a great way to protect you from unfortunate events that can cost you a lot of money. In Malaysia we have 14 insurance companies that offer travel insurance and it is not easy to compare them and find out which is the Best Travel Insurance for you.

In this Ultimate Travel Insurance Guide, we will take a closer look at 8 Malaysian Insurance companies that sell Travel Insurance Online. We will cover the other 6 companies that sell travel insurance insurance through insurance agents in another article.

The benefit of buying online is that it is fast and you can even do it on your way to the airport, when you have forgotten to buy it. The other benefit is that many insurance companies offer additional discount when you buy online.

Travel insurance

8 Malaysian Insurance companies where you can buy Travel Insurance Online

#CompanyUser RatingProduct NameWebpage friendliness
1Allianz
Buy Online

(916 reviews)
Travel CareVERY EASY
2AXA Affin
Buy Online

(233 reviews)
Smart TravellerVERY EASY
3Tokio Marine
Buy Online

(243 reviews)
Travel PartnerVERY EASY
4Etiqa
Buy Online

(2,514 reviews)
TripCare 360 (Takaful)VERY EASY
5MSIG Malaysia
Buy Online

(173 reviews)
Plan 1, Plan 2EASY
6AIG Malaysia
Buy Online

(220 reviews)
Basic, Standard, DeluxeEASY
7Tune Insurance
Buy Online

(88 reviews)
Travel EasyVERY EASY
8Berjaya Sompo
Buy Online

(167 reviews)
Travel Care Basic, EliteEASY

Source: Rating and Review counts are from http://review.ibanding.com dated 1.8.2018

6 Malaysian Insurance companies that sell Travel Insurance Offline

#CompanyStarProduct NameResources
1Takaful Ikhlas
Find Takaful Ikhlas Agent

(483 reviews)
IKHLAS Kembara PlusWebpage
2Great Eastern General
Find Great Eastern Agent

(44 reviews)
Travel For MoreWebpage
3LonPac
Find Lonpac Agent

(122 reviews)
Easy Travel, TravelNetBrochure Easy Travel |
Brochure TravelNet
4CHUBB
Find CHUBB Agent

(62 reviews)
Travel InsuranceBrochure
5RHB Insurance
Find RHB Agent

(123 reviews)
Travel ProtectorBrochure
6Liberty
Find Liberty Agent

(284 reviews)
TravelStarWebpage

Source: Rating and Review counts are from http://review.ibanding.com dated 1.8.2018

Buying Travel Insurance online is Easy

We took a closer look at the webpages from all the 8 insurance companies that offer travel insurance online and surprisingly all of them are Easy to Very Easy to use. For most webpages all you need to provide is the below information and you can get a price on your travel insurance:

  1. Who is traveling? Single, Family or Group
  2.  Where are you traveling to?
  3. From when to when are you traveling?
  4. Do you want to buy a single trip or annual plan?

If you compare it to buying car insurance online, buying travel insurance is much easier even if you do not know much about insurance. And if you are still unsure? Keep on reading, we will show you how we found the Best Travel Insurance for us.

Which travel insurance is the cheapest?

Many people like us, when it comes to buying anything, we look at the price and ask, which is the cheapest travel insurance? It is a normal question to ask, because when we buy something we do not want to pay more money if we can get it cheaper. We took a quick look  at the prices for a sample trip of 7 nights to Japan for a single 30 year old traveller. This of course will not be accurate for you, because you might not be flying to Japan, but it gives you a rough idea how big the difference is between the insurance companies. Here are the results?

NumberCompanyProduct NameJapan - Single in RM
1Berjaya SompoTravel Care Basic30.25
2Tune InsuranceTravel Easy31.50
3AIG MalaysiaBasic32.00
4AXA AffinSmart Traveller VIP39.00
5AIG MalaysiaStandard47.00
6Tokio MarineTravel Partner47.50
7EtiqaTripCare 360 Gold48.70
8Berjaya SompoTravel Care Elite49.00
9MSIG MalaysiaPlan 153.50
10AllianzTravel Care55.00
11MSIG MalaysiaPlan 275.25
12AIG MalaysiaDeluxe80.00

What a difference in prices !

The price range for travel insurance goes from the cheapest RM 30.25 up to RM 80. The good news, Travel Insurance is cheap. So it is something everyone can afford, especially if you consider that not having travel insurance can cost you up to RM 300,000 in medical expenses if you fall sick in another country.

If you look at the products, there are 12 possible Malaysian Travel Insurances that you can buy online. Some companies like AIG offer different product levels, so that there are more travel products than insurance companies.

Our question “What is the cheapest Travel insurance?”  is easy to answer. In our case, it is Berjaya Sompo Travel Care Basic that only costs us RM 30.25. It is cheaper than a 6-piece Chicken combo at KFC.

Travel insurance for a trip to Japan is cheaper than a 6-piece chicken combo from KFC

But Wait !! Is Cheaper also Better?

The obvious answer is No. When it comes to insurance, the Cheapest insurance is not always the Best Insurance for you. The better question to ask is “Which Travel Insurance is the BEST for me?“. If we look at the cover for Medical Expenses and Travel Delay, we immediately see that Berjaya Sompo’s Travel Care Basic is also the lowest among all 12 travel insurances. Berjaya Sompo only covers Medical Expenses for RM 100,000 compared to AIG’s Travel Insurance Deluxe that covers Medical Expenses of up to RM 1,000,000. That difference is huge !

CompanyProduct NameJapan - Single in RMMedical ExpensesTravel Delay
Berjaya SompoTravel Care Basic30.25RM 100,000RM 0
AIG MalaysiaDeluxe80.00RM 1,000,000RM 150

AIG travel insurance costs RM 80 and is almost 3 times more expensive than Berjaya Sompo, but the travel cover from AIG is 10 times higher. Also, Berjaya Sompo’s Travel Care Basic does not pay you any support, when there is a Travel Delay. AIG pays you RM 150 after 6 hours of delay. If you look for value for money, then AIG looks better than Berjaya Sompo. But then again, just because AIG offers the higher Medical Expenses and higher Travel Delay support, it might not be the Best Travel Insurance for You. 

Which Travel Insurance is the Best for me? 

So if price is not the right way to find the Best Travel Insurance, how do you find it? Many professional agents will agree that the answer is “It depends on you”. How many insurances do you already have? Are you married or single? Do you have a house loan that needs to be paid or you live with your parents. So yes, it might be worth talking to someone who is an insurance agent or someone who works for an insurance company to get their advice and opinion.

Once you learn more about Travel Insurance and how it protects you during your vacation, you can then decide for yourself. Below, we will give you a general step-by-step guide on how you can find which travel insurance is the Best for you. Legal disclaimer here, we are not a licenses insurance agent or financial advisor and we do not sell insurance. So, the guide is our opinion and you should talk to many people to get their views before buying insurance. 

Step 1: What is the biggest worry, when traveling?

In the first step, you need to brainstorm what would be something that you think could happen to you and cost a lot of money, when it happens during your travel. For example, the following 3 events happen most often to people when they fly to another country for vacation.

1. Flight is delayed more than six hours

The number one things that can happen during your trip is a flight delay. A flight delay of a few hours is inconvenient, but the world does not end and you can still enjoy your vacation. If a flight is delayed more than six hours, then very often a lot of additional costs pop-up. You will miss your connecting flight. You have to stay for one more night in a foreign country without any hotel bookings. Many things that you did not plan for and cost extra money.  If your flight is cancelled or delayed overnight and you need to spend another unplanned night => DISASTER. iBanding CEO Luke Roho described his experience of a cancelled flight with AirAsia in this article What I Did When My AirAsia Flight Was Cancelled and How I Received RM 700 for It

Flight delay is the most important protection we are looking for.

2. Luggage is delayed or lost

You arrive at your vacation destination and your luggage is missing. Your warm jacket on your winter trip to Japan is in the luggage and now you are freezing outside in Tokyo. Your business suit or dress for the meeting is missing. If your checked in luggage is missing for more than a day, you most likely will need to buy extra clothes, toothbrush, soap and many more things to still enjoy your vacation. You do not waste time waiting in your hotel room for your luggage to arrive. You want to make the most of the limited time you have to enjoy your vacation. If your luggage is delayed or missing, then you need to spend a lot of more money to still enjoy your vacation. A lot of money that you might not have or planned to use for tours, food, etc. instead of clothing.

Luggage delay is the second important protection we are looking for in a Travel Insurance.

3. You get sick during your vacation

Another worry, when traveling in countries where the living costs are much higher than Malaysia are Medical Expenses. Many Malaysians, when they go to another country for the first time, get sick, because they are not used to the different temperatures and environment. We are just not used to the different seasons like spring, fall and winter. In Malaysia it is always summer. Hot dry or hot rainy.

You like to eat out and adventure on a food journey Makan-Makan? If you are this kind of person then food poising is no stranger to you. If you get sick on your vacation you might not be able to wait until you get home to see a doctor. Then going to the doctor or the hospital abroad is not cheap. A doctor visit as a foreigner in Japan can cost you about RM 220 – 730, because as a foreigner you pay even more than locals.   The low ringgit and the high exchange rate makes doctor or hospital visits in developed countries like Japan, Korea, Australia or the US cost a fortune. The worst part is, if you have an accident or need to get admitted to the hospital. Then the cost can go easily into the hundred thousands of ringgit.

Medical Expenses is the third most important protection, when we look for Travel Insurance.

 

So in our example cases those are the three things that worry us the most: Flight delay, Delayed Luggage and Medical Expenses. You might ask, what about all the rest like Personal Accident, Permanent Disablement, Hospital Income, Funeral Expenses and more more more?

Wait? Why is Personal Accident insurance not important?

Many of the other protections might be more important for you, so you need to look into those in more detail and compare those between the different insurance products. In our sample case, we believe and just decided that the 3 possible events, we worry the most for our vacation are Flight Delay, Delayed Luggage and Medical Expenses.

Many insurance companies especially highlight the Personal Accident Benefit of Travel Insurance. This means that if you die during an accident, then your surviving loved ones, will get the Sum Insured. For example, Berjaya Sompo Basic the cheapest insurance will pay RM 100,000 and AIG the most expensive travel insurance will pay RM 300,000.

Travel Insurance is bad to cover your death

The reason why Personal Accident is not our first priority is that Travel insurance is bad to cover you for your death. If you do want to have money for your loved ones, you should have protection not only during your vacation. YOU WANT TO HAVE PROTECTION ALL THE TIME. It just does not make sense to insure yourself for accidental death only for vacation. Out of 365 days a year, how many days are you on vacation? Why do you think that you will only have an accident during your vacation?

Travel Insurance is not Life Insurance

If you worry about your death and that your parents, wife/husband, or children have enough money when you die, then get Life Insurance or buy Personal Accident insurance for the whole year and not only for your vacation. This is the main reason, why we do not consider the sum insured for Personal Accident important and worth looking at. When we buy Travel Insurance, we only want to look at the things we want to protect ourselves from during the vacation. Death from accident is not one of them, because we want to be protected against accidents all the time. Not only on vacations.

Step 2: How much protection do we need?

In the 2nd step, we need to look at how much protection do we need for those 3 things that we worry the most?

1. Flight is delayed more than six hours

Insurance companies offer a fixed amount after a fixed number of hours of flight delay.  For example, Tokio Marine gives RM 200, if your flight is delayed for six hours. If the flight is delayed for another 6 hours, so in total 12 hours, then you get another RM 200. This continues for every 6 hours until a maximum amount of RM 3,600. This is 4 and a half days worth of flight delay. Now, flights are normally not delayed for days, so we do not care much about the maximum payout. It is just too unlikely that it will happen. What we will be looking at is the amount that is paid after the first 6 hours, because this is most likely to happen.

Etiqa is unique among the insurance companies, because it pays RM 100 already after a flight delay of 2 hours. A 2 hour delay can happen quite often, especially during international flights.

Selection Criteria: When we look at the amount, we want the highest possible. The higher the amount the better.

2. Luggage is delayed or lost

Here, we take the same approach as flight delay. Instead of looking at how much the maximum payout is for delay or lost luggage, we look at the amount that is paid out after 6 hours of flight delay. Tune Insurance for example, pays RM 200 for every 6 hours your luggage is delayed up to an amount of RM 1,000. To get RM 1,000 your luggage needs to be delayed for 30 hours.

Selection Criteria: We prefer the insurance company that pays the most out after 6 hours. The higher the amount the better.

3. You get sick during your vacation

The biggest difference between the insurance companies is medical expenses. To recap, Berjaya has the lowest amount of RM 100,000 and AIG has the highest of RM 1,000,000. The more we need the more we pay for the Travel Insurance. This is why AIG is also the most expensive travel insurance. Here again, to find the Best Insurance for you, you need to decide for yourself, what medical expense amount makes sense. We are no experts for medical expenses in other countries, so we take the best approach possible, which is to go with the most popular amount. RM 300,000 is the coverage that most travel insurance provide, so we believe it is a safe choice to say that the insurance we want must provide at least RM 300,000. It can have more, but it should not have less than RM 300,000 in protection against medical expenses during the vacation.

Selection Criteria: The medical expenses coverage must be RM 300,000 or higher.

The BEST Travel Insurance for you only

Just by taking two simple steps, (1) Setting what protection is most important to you and (2) Setting what is the amount of protection you need, we have reduced the number of possible Travel Insurance products from 11 products to 8 products and are now able to put them into a ranking that you see below. At the top is the insurance that matches our criteria the most. At the bottom is the travel insurance that matches our needs the least.

9 Travel Insurance Products that can be the BEST for you

RankingCompanyProduct NameTravel Delay (6 hours)Luggage DelayMedical ExpensesJapan - Single
1AllianzTravel Care300800 (max)300,00055.00
2EtiqaTripCare 360 Gold1001,000300,00048.70
3Tune InsuranceTravel Easy200200300,00031.50
3AXA AffinSmart Traveller VIP200200300,00039.00
3Tokio MarineTravel Partner200200300,00047.50
3MSIG MalaysiaPlan 1200200300,00053.50
4MSIG MalaysiaPlan 2200200400,00075.25
5Berjaya SompoTravel Care Elite150200350,00049.00
6AIG MalaysiaDeluxe1501501,000,00080.00

The current ranking shows Allianz Travel Care insurance as the BEST, because it pays the highest after 6 hours of travel delay (RM 300), the highest RM 800 for Luggage Delay after 6 hours and fulfills our requirement of RM 300,000 for medical expenses.

On second place we have TripCare 360 Gold by Etiqa. It pays already for a flight delay of 2 hours, but for a 6 hour flight delay it is lower than Allianz’s Travel Care. Also for luggage delay it pays slightly lower (RM 500) than Allianz, but more than all the other travel insurance products.

On third place we have 4 travel insurance companies that pretty much have the same amount for travel delay and luggage delay: Tune, Axa Affin, Tokio Marine and MSIG. All companies provide:

  • Travel Delay RM 200
  • Luggage Delay RM 200
  • Medical Expenses RM 300,000

If you wanted to buy the cheapest among those 4 travel insurance companies, then Tune Insurance is the cheapest at RM 31.50

Best Travel Insurance for Single Traveler:

Allianz Travel Care

allianz travel partner insurance brochure

The insurance that fulfills our needs the best is Allianz Travel Care. Allianz’s Travel insurance provides the highest amount of RM 300 after 6 hours of flight delay. All the other insurance companies only provide RM 200 or less.

Allianz is unique when it comes to Luggage Delay. Rather than paying a fixed amount after 6 hours, it will pay up to RM 800 based on “essential items such as toiletries and clothing”. This means that you need to keep your receipts, when you go out and buy things. Also, “essential items” means that you cannot go out and buy luxury items with that money. Here our advice is, when it happens to you, call the Allianz hotline and check if it is ok to buy the more expensive items. Other insurance companies pay only a fixed amount like RM 200.

Allianz Travel Care covers medical expenses up to RM 300,000, which is the minimum amount that we require.

Allianz Travel Care costs RM 55.00 for our trip. Compared to RM 31.50 from Berjaya Sompo the price difference is RM 23.50.

Best Travel Insurance for Trips with Travel Agent:

Tokio Marine Travel Partner

tokio

Tokio Marine’s Travel Partner is worth mentioning, because it offers something unique that other insurance products do not: Loss of Travel Deposits or Travel Package Payment.

MATTA Fair is a great place to get good deals on travel flights and packages from Travel agents. However, more often than we wish, we hear of travel agents and agency that go bankrupt or run away with the money. In those cases, we have lost the deposit or pre-paid amount. Tokio Marine’s Travel Partner covers your travel deposit up to an amount of RM 3,000, if that happens.

Summary:

Best Travel Insurance Malaysia has to offer is:

  1. Etiqa – TripCare 360 (Takaful) Travel Insurance
  2. Allianz – Travel Care Travel Insurance
  3. AXA Affin – Smart Traveller Travel Insurance
  4. MSIG Malaysia – Plan 1, Plan 2 Travel Insurance
  5. Tokio Marine – Travel Partner Travel Insurance
  6. AIG Malaysia – Basic, Standard, Deluxe Travel Insurance
  7. Tune Insurance – Travel Easy Travel Insurance
  8. Berjaya Sompo – Travel Care Basic, Elite Travel Insurance

Do you agree with our list? In your opinion, which insurance company provides the best travel insurance in Malaysia?

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