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Executive Summary
The travel policy that is offered by Manulife policy offers a series of benefits to the insured who buy the right policy. The clauses in this manual explain the six categories of travel insurance that this firm offers. The first one is the Emergency Medical Insurance Policy. This policy is meant to cover the expenses that the insured may incur due to medical emergencies when one is on the trip. The insured is expected to call the Assistance Center the soonest time possible in case such an emergency arises. An individual with the right insurance plan can get the medical emergency costs covered to a tune of $ 5,000,000 CND under this policy. Another popular policy that is offered by Manulife Financial is the Trip Interruption Insurance Policy. When one sets on a trip to a given destination, it is not easy to predict the eventualities. Sometimes these eventualities may lead to interruptions. Trip interruption may have direct financial consequences. For instance, when one was going to sign a contract and the interruption leads to the collapse of the intended deal, then there may be financial consequences that may arise. In some cases, an interruption may lead to a situation where one loses an already booked flight, forcing one to pay for another flight. This policy covers such eventualities. Baggage Damage or Loss insurance Policy covers events where one loses a property during the trip. Travel or Flight Accident Insurance Policy is another popular cover offered by this firm. In the event that one is involved in a flight accident, this policy offers as much as $ 100,000.
It is important to understand that legal principles that should be followed in order for one to qualify for the insurance cover. Accidents that arise from personal decisions such as cases of suicide are never compensated. A loss that results from cases of negligence or any error or omission of commission does not attract any compensation. It is also important to note that there are legal processes that an insured should follow in order to get the right compensation. Failure to follow these legal guidelines may lead a situation where the client gets a reduced compensation. In some cases, such omissions may make the insured to loss the expected compensation. Such issues may bring constrains, and therefore, should be eliminated. It is recommended that the clients should have the right information in order to avoid such misunderstandings.
Introduction
Travel insurance is one of the most popular insurance policies in the world today. The emerging technologies have transformed the world into a small village. The need to travel from one region to another for business purposes or for personal issues has increased. According to DuPlessis et al. (54), in the current global village, the need to move from one part of the world to another has become more necessary than ever before. Business entities have realized that the only way of remaining relevant in the market is to go global. Tourism industry in various parts of the world is also expanding rapidly due to the increase in the population of the middle and upper class members of the society. Living standards in Canada is improving and this means that more people can now afford to travel easily from this country to various parts of the world for leisure or official duties. However, it is important to appreciate the fact that some uncertainties may affect the travel programs. These uncertainties may cause delay for the travel because of various forces. Sometime the travel may be canceled completely or postponed to a future date. These delays or cancelations may cause financial or psychological loss. When one was travelling to address a business errand, then a delay or cancelation may lead to a serious business loss. For instance, an individual could be travelling to sign a business deal with an individual or a business entity in other parts of the world, such delays or cancelation may lead to a serious loss. If the business or individual succeeds in convincing the other party to postpone the signing of the deal, there will be a perception developed by the other party about the unreliability of the party that failed to arrive at the designated place in time. This is not good for a business that is operating in a highly competitive environment.
Sometimes events may take place during the course of the travel that may lead to a loss to an individual or a business entity. Accidents are some of the possible uncertainties that may occur causing serious damage or even loss of life. In such accidents, there is also a possibility of loss of life. Sometimes acts of terrorism may occur during the time of travelling which may have far-reaching consequences. This makes it necessary to have a travel insurance policy. This insurance policy helps in covering such uncertainties such as delays, travel cancelations, accidents or acts of terrorism. When taking the travel insurance, it is important to understand the legal concepts of the cover in order to understand risks which are covered and that that are not covered. In this paper, the focus will be to analyze the marketing terms found at the bottom of a policy for travel insurance subject to Ontario laws
Objectives
The objective of this paper is to critically analyze all the sections and clauses of the travel insurance policy in order to provide a detailed understanding of the legal concepts and make recommendations on how they should be applied for the benefit of both the insurer and the insured. According to DuPlessis et al. (65), insurance companies are business entities with a sole objective of maximizing their profits. This means that they will always try to find excuses not to pay for compensation even when it is clear that the loss was caused by an event that was covered by the insurance policy. On the other hand, the insured will always want a compensation for every loss, even in cases where the loss is caused by an event that is not covered by the policy. Such conflicting interests may affect the relationship between the insured and the insurer. For this reason, it is necessary to have a clear legal terms defined properly that specifies the relationship between the insurer and the insured. It is important to define how these clauses work, and how an individual should go claim the compensation when the insured risk occurs. It is also important to make necessary recommendations on how the current law can be modified to fit into the current society in order to benefit the two main parties in an insurance policy. This is the main objective of this document (Koller 55). The researcher believes that this report will not only act to inform the relevant parties about various concepts of travel insurance policy, but also make policy recommendations that will be of benefit to the insurer, the insured, and all other stakeholders in an insurance policy.
Ethical issues
When conducting research, it is always important to take into consideration issues relating to ethics. A piece of research is a very important document that can be relied upon by an individual or an entity when making critical decisions. It is, therefore, very important to observe ethics knowing that the piece of research may be an important document to various parties. In this study, the researcher was keen to maintain ethics in the process of collecting, analyzing, and presenting the data. During the collection of data, it was ethically necessary to defend the identity of the individuals who participated in the study (Van 27). Sometimes the views given by an individual may be a source of criticism if they are in conflict with the views of the majority of members of the society. To counter such problems, the researcher ensured that the identity of the participants remained concealed. The researcher was also keen on managing personal biasness when collecting and analyzing the data. Some of the opinions that the researcher gathered were in conflict with personal beliefs. However, the researcher did not make an attempt to make personal opinions prevail over the data collected from the field. This was necessary to enhance the validity of the study.
Methodology for the introduction
I was interested in gathering the relevant information before starting the paper. I considered secondary sources of information to be appropriate in formation of the foundation of the research. I was keen to avoid scenario where my work would be considered to report on the same thing that other researchers had reported about in the past. Collecting and analyzing the literatures proved very important in helping me to develop an understanding of the travel insurance policies. I then studied very closely, the manual given by the two insurance companies titled Manulife Global Travel Insurance Policy to get a closer understanding of travel insurance policies in the local context. This made it possible to write the introduction and prepare to address the entire paper.
Methodology for the clause description
In describing the clauses, the first thing that I considered to be very important was to get a clear definition of the terms such as the insurer, the insured, insurance policy, insured risks, uninsured risks, transferable and nontransferable risks, and many other terms that are related to travel insurance. The dictionary, online sources, and individual experts in the field of insurance proved important in understanding these terms. I then identified all the clauses that exist in the policy in the travel insurance policy. It was easy to understand some of the clauses. In other cases, I found it difficult to understand the clauses. This forced me to consult some experts in this field to get a clear meaning of some of these words. The class notes were also very important at this stage of the research.
Methodology for application of legal principles
In order to under how the legal principles are applied, I found it necessary to visit Ottawa courthouse to listen to the proceedings relating to similar cases. I also went through the court archives to visit the previous cases in order to determine how some cases were decided. The class notes and materials found on legal journals also helped a lot at this stage. I also interviewed legal experts in contract law, especially those who have specialized on the issue of insurance in the local context. These various sources of information made the process of interpretation very easy.
Methodology for application of the agreement
In order to understand the application for the agreements, I first went through my class notes. I then looked for copies of such agreements in order to understand how the insurance companies explained various concepts and the relationship between the insurer and the insured. To get the practical context of this application of agreement, I had to visit a local insurance company in order to understand how this happened. This was followed by an interview of the insurance companys agents, and their customers who had been involved in this process. This way, it was possible to write this section of the report.
Methodology for the recommendations and lessons learned
Finally, it was necessary to give recommendations and lessons learned. To do this, I first went through the entire report to identify issues the participants in this research identified as needing some ratification. I based my recommendations on the views of the participants and personal knowledge based on what was gathered from the field. This way, I was able to give clear recommendations and lessons learned.
Description and Explanation of the Clauses of the Document
Introduction clause
This clause acknowledges the responsibility of Manulife Financials as an insurance firm that offers insurance solutions to their clients whether they are travelling within or outside their province. It appreciates the fact that no one can predict the events that may take place when one is travelling. This makes it necessary to take insurance cover against the unforeseen tragedies that may lead to loss (Gosdin 74). It also explains that the travel insurance policy is available in all the provinces in this country, including the province of Ontario.
Clause 1.0
This clause provides a summary of the travel insurance coverage. It offers information, in tabular form, about specific insurance offered and the coverage amount per individual insured. The insurance solutions offered include emergency medical during the time of travel, trip interruptions that is not caused by the insured, luggage damage or loss, luggage delays, travel accidents, and flight accidents.
Clause 1.1
This clause defines the underwriters of this insurance cover. It specifies that the policy was underwritten by The Manufacturers Life Insurance Company and First North American Insurance Company, both being subsidiaries of Manulife Financials.
Clause 1.2
Under this clause, it is stated that anyone who purchases this insurance will automatically get their children who are aged over thirty days but less than two years old covered at no extra cost.
Clause 2.0
The clause focuses on medical concierge services as an additional value that is added to the customers of this firm when they are travelling to the Dominican Republic, Mexico, or the United States. The services include telephone consultation, delivery of any forgotten or lost prescription or eye glasses, medical referrals to specialists, and access to a physician. All these services are available in these three countries at any time of the day.
Clause 2.1
This is a disclaimer clause that also explains issues to do with waiver and liability limitations. This clause explains that a StandbyMD is not considered a provider of medical services. The clause explains what StandbyMDs can or cannot do in terms of making judgment about the condition of a patient, making referrals, or offering medical services.
Clause 3.0
The eligibility for this insurance is defined in this clause. The first factor is that one must be a Canadian that is covered by the governments health insurance plan. It is also required that one must be a customer of Sunwing. Before one leaves for the trip, he or she must pay the necessary premiums at the relevant Sunwings travel advisor. One must also buy the entire journeys coverage when booking for the trip. This section also defines what may make one ineligible for coverage even when one has qualified under the above mentioned requirements.
Clause 3.1
For those who are above the age of 75 years, this clause states additional requirements that they have to meet before they travel in order to be eligible for the cover. The first requirement is that the applicant must not have been prescribed or used home oxygen within the last one year before the day of application. The applicant should not be waiting for, or ever had am organ transplant. The applicant should not be HIV positive or be suffering from a terminal illness. Many other medical requirements such as the condition of the heart and cancer-related sicknesses are also talked about in this clause.
Clause 4.0
This clause about the travel insurance states that the coverage begins when one leaves home. It ends when one return home or at the expiry of the date specified on the policy purchased, whichever comes first.
Clause 4.1
Automatic extension is possible under the Trip Interruption Insurance. This clause explains that one can get an automatic extension for three, five, ten, or even ten days if specific conditions are met by the insured. Issues such as a delay by the carrier, medical emergency for the insured or travel companion, or hospitalization are some of the possible justifications of a delay in flight.
Clause 4.2
There are cases where an insured may stay longer than the planned duration due to a number of factors. This clause focuses on such eventualities. The extension can be given when one is yet to start the journey or when one is on the journey. In either case, the extension can be validated through a phone call. The extension will be validated in case the following requirements are met.
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The insured pays the additional premium to the extent of the extension,
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The extension requested for does not exceed thirty days
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The extension is approved by the Assistance Center
Clause 5.0
There are cases where an individual may face trip interruptions that may lead to direct loss. In such events, this firm offers its clients a Trip Interruption Insurance as defined in this clause. There are specific events that this firm covers under this policy. The following are the events that this policy covers.
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When the insured on travel companies has a medical process or dies,
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A member of the family develops a medical problem or dies,
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When the insureds host is taken ill or dies,
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When a legal issue of child adoption interrupts the planned trip,
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A medical condition where a physician recommends a postponement of the trip,
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When the insured visa or that of the companion is not issued for reason beyond personal control,
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When one or ones spouse is called to the service or summoned by the court as a defendant or witness,
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When the insured or travel companion is hijacked or quarantined,
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When the insured is not occupy his or her principal residence because of an issue that is not an error of omission or commission,
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A natural calamity that renders the destination accommodation unsuitable for habitation,
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A case where the insured or spouse loses job due to layoffs or unlawful dismissal that may require a change of residence,
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When one misses a connection because of interruption on the road caused by traffic jam, police checking, mechanical failure, weather conditions, or any other natural calamity,
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In case the trip is interrupted, and the scheduled time of arrival delayed for reasons beyond control of the insured,
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If the Canadian government issues a travel advisory against the intended destination,
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In case it is reported that the intended destination is experiencing poor weather conditions or natural calamities that may necessitate cancelation of a flight,
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A delay in departure by the carrier due to natural forces,
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In case the flight is overbooked and the insured is one of those affected by this,
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If the insured passport or that of the travel companion is stolen or lost when one is on the trip.
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If the trip has to be interrupted because of the mechanical problems of the carrier.
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A sudden requirement that the insured or the travel companion must attend an examination on the travel date or a date that one should be on the trip.
Clause 5.1
This insurance company also offers misconnection insurance cover to its clients as defined in this clause. This cover is offered in cases where the misconnection results into a direct or indirect loss to the insured. The following events are covered under this clause.
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When the misconnection is caused by one of the connecting carries leaves later than the scheduled time.
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When the carrier that was booked to provide transportation for a portion of the trip leaves earlier than the scheduled time, leading to misconnection,
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When a delay due to security check and customs clearance results into misconnection,
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When the disconnection is caused by a delay in the carrier because of an emergency such as sickness of a patient.
The insured must prove that he or she made a reasonable effort to continue with the trip as originally planned even after the occurrence of such events in order to qualify for the compensation.
Clause 5.2
In some cases, an individual may be prevented from returning how as pre-planned dues to events beyond personal control. This clause defines the events covered when they arise and cause delay in return.
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Cases where the insured develops medical emergency,
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When a family member develops a medical problem or dies at the point of destination,
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When the travel companion has a medical problem or dies during the trip,
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When the host develops a medical problem or dies during the time of visit.
When these events occur, the insurer caters for additional meal, travel, and essential call costs.
Clause 5.3
This clause is about exclusions and limitations on trip interruption insurance. It defines what this insurance does not cover. It starts by defining the clause pre-existing conditions and the world stable. As stated in this clause, in cases where the interruption was caused by a delay that could easily be rectified if the insured made a reasonable effort to continue with the journey, then the insurance company may not compensate the insured. Similarly, cases where personal negligence, events directly or indirectly caused by the insured or associates leads to delay, compensation may not be issued. Also not covered in this policy are events that occurred leading to delay, but the client had a prior warning about such events but ignored.
Clause 5.4
In this clause, the company defines circumstances under which it offers Default Protection Coverage, specifically for those who have purchased Trip Interruption Insurance. This insurance cover seeks to compensate the insured if the travel supplier defaults to deliver services in time leading to loss. It also covers incidents where the default results into a situation where the insured fails to get part or the entire travel services. Lastly, the insurance policy also covers for losses that are incurred because the travel supplier has delayed to deliver services because of legal issues or natural calamities. However, the benefits have limits as discussed in the clause below.
Clause 5.5
This clause details all the limitations to the benefits offered under the above default clause by Manulife Global Policy. This limitation was set to avoid exploitation by unscrupulous individuals who are covered under a given policy in case the insured event occurs. As explained in this manual, some clients may want to prolong the days under which they should be covered for the sole purpose of earning hire compensation. To cushion this firm against such unfair business practices, the limitation clause explains the limits beyond which a client may not get any benefit from this firm. Manulife Financials has set $1,000,000 CDN as the maximum limit for a default of a single travel supplier. It has also set $ 1,000,000 CDN as the maximum limit for all defaults committed by all travel suppliers within a given calendar year. However, this company appreciates that there are cases when a clients claim under this cover may justly demand for a compensation exceeding the set maximum target. In such cases, the company policy states that the excess of the set target is transferred to the following year.
Clause 5.6
According to Weir and Ellis (65), there are some losses that cannot be easily defined, and this makes them difficult to insure. This clause talks about losses that are related to some of the risks mentioned above, but cannot be easily defined, hence not covered. Some of the exclusions are events that occur due to errors of omission or commission on the side of the insured. These losses are defined below:
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A damage or loss that is incurred by the insured that is bound to be recovered from other sources.
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A loss due to a default by a travel supplier if, by the time of making the booking, the supplier had declared bankruptcy, is under receivership, is insolvent or facing such similar situations.
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A loss that arises due to the insolvency or bankruptcy of the travel broker, agent or agency.
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A loss that arises from a default of a foreign supplier in case the services promised by the travel supplier are not part of what the insured bought from the tour.
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In case the insured had not purchased the cover policy in relation to the specific event that directly or indirectly led to the loss.
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In case the insured purchases the insurance or makes the booking after the default.
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In case the travel services were actually offered, then any loss that may arise to due to market forces or any other issue that is not insured by this company may not warrant compensation.
Clause 6.0
Clause 6 is about emergency medical insurance cover that is offered by this insurance company. As explained in this manual, Emergency Medical Insurance offers a cover to the insured for all the incurred expenses as a result of emergency medical services offered to the client during the trip. However, the cover will only be applicable if the insured is not under the cover of government health insurance cover plan. The insured should also not be under any other benefit plan that may result into a situation where the client gets double compensation in case of the occurrence of a risk factor. This cover caters for all the expenses that costs $ 5,000,000 CDN or below. Expenses above this limit will have to be met by the client.
Under this clause, this company has provided a number that a client can use to call for support from the Assistance Center. For those who are within the United States and Canada, the toll-free emergency number is 1 800 211-9093. For those who are outside these two territories, the number is +1 (519) 251-7821. The company is very strict when it comes to calling this emergency number so that they can start following up on the issue immediately. When one is not in a position to make the emergency call, the company requires that one should inform a family member or a friend to make the call as soon as possible. In case on fails to make this call, then the 25% of the medical expenses will be paid by the client. This means that instead of paying 100% of the expenses, in case the cost is $ 5,000,000 or below, the company will only pay 75% of the amount (Manulife Financials 16). The following are some of the expenses covered under this policy.
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Expenses incurred because of the need for an urgent medical attention,
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Expenses incurred when the insured receives a professional medical services,
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Ambulance transportation or related expenses arising due to emergency,
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The expenses incurred due to death of the insured,
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Expenses to bring the insured back home for further medical attention,
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Additional expenses for services such as hotel, meals, taxi, or phone call when one is in the process of getting medical attention,
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All the expenses to bring a family member or a close friend to the hospital where the insured is receiving treatment,
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Expenses arising from the need to get emergency dental attention,
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Travel expenses to return minors under the care of the insured home when he or she is hospitalized.
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When an insured is hospitalized, the insurance will meet the costs of childcare,
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There is a cover to take a pet home as one receives treatment.
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In case the insured had a companion recognized at the time of booking, the return-home expenses for the companion will be met,
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When an insured had a vehicle during the time when he or she was taken to hospital, the cover will meet all the costs associated with taking the vehicle home,
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If the insured is hospitalized for more than 48 hours, there will be an allowance of $ 50 in a day. The maximum allowance under this cover is $ 500,
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Baggage return cover is offered for the clients when it is necessary to do that in case one is hospitalized,
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All the expenses incurred in replacing prescription drugs will be met by this firm under this policy,
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In case a hearing aid is lost or damaged, the company will meet the replacement costs to a tune of $ 200,
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The cover also offers a replacement of lost or damaged vision cover to a tune of $ 200.
Clause 6.1
This clause defines some of the limitations and exclusions in meeting the above expenses. In this clause, the company states that losses resulting from personal decisions such as suicide, errors of omission or commission on the side of the insured, the companion, or family member, or cases where one initiates the damage or loss to get compensation are all excluded in this over. This means that if they occur, the client will be personally responsible for all the associated costs.
Clause 6.2
The clause focuses on additional conditions or requirements that are necessary when one is taking Emergency Medical Insurance.
Clause 7.0
This clause is about issues to do with baggage damage, loss and delay insurance. Under this policy, the coverage cannot exceed $ 2,000 per a given trip.
Clause 7.1
This clause talks about the benefits of taking baggage damage, loss or delay insurance cover when traveling. One of the benefits is that the charges are reasonable. The company pays handsomely for any damage or loss of a baggage.
Clause 7.2
Under the clause, limitations and exclusion to this coverage are defined. As stated in this clause, individuals who engage in criminal acts, those who are insane, individuals who are on mountaineering or piloting process do not qualify for this policy coverage. Those who are engaging in acts of war or terrorism are also excluded from the policy.
Clause 8.0
It is about insurance cover for travel and flight accidents. The clause starts by clearly specifying the benefits of this cover. For instance, an accident that leads to loss of limb when one is on a flight attracts as much as $ 100,000 (Manulife Financials 12). There are also other lucrative benefits offered under this clause.
Clause 8.1
The policy does not cover a number of events as defined in this section. Individuals, who are under training to learn how to fly, including their trainers, are not covered under this policy.
Clause 9.0
Acts of terrorism may lead to serious injuries, loss of property, and sometimes even death. Insurance against such occurrences is covered here. The firm offers a policy to cover such eventualities. The firm also covers for the loss due
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