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Travel Insurance : Airline vs Insurance Companies

Travel Insurance: Airline vs Insurance Companies. Which is Better?

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Residents of Singapore have five options to choose from when looking to book a ticket with a Singapore-based airline. In large part, the decision will depend on the destination. Singapore Airlines serves destinations like New York, London, and Paris.
Whereas, regional airlines, like Tiger Air, focus on serving Southeast Asian destinations like Bangkok, Kuala Lumpur, and Manila. Regardless of your destination, airlines will enquire whether you would like to purchase a travel insurance.
Are these products worth your money?
AirlineDestinations
Singapore Airlines64
SilkAir51
TigerAir40
JetStar Asia Airways28
Scoot23

Travel Insurance’s Value

Travel insurance covers almost every facet of your travels. From the cost of cancelling the trip to medical costs overseas. This insurance even covers the cost of evacuation for you and your family during a natural disaster or worse.

Majority of these policies also cover terrorist related events which have unfortunately become more prevalent in the 21st century.

While these types of events are rare, the financial burden to travellers who experience them can be significant. A broken leg can cost thousands of dollars in hospital bills. An emergency helicopter trip to the hospital could double this amount.

For this reason, considering the purchase of travel insurance can be a prudent practice for those whose travel often. Be it for business or pleasure.

In past articles, we have explored this topic deeply, researching the costs and benefits of travel insurance products. As well as providing our recommendation for the best travel insurance programs available in Singapore.

We now compare these plans from insurance companies to travel insurances offered by the airlines in Singapore. With the recent partnership between Scoot and TigerAir, we have elected to only feature insurance provided by TigerAir.

Travel Insurance: Airline vs Insurer

Through our research, we found that most private travel insurance programs provide higher coverage amounts for lower prices than those offered by airlines.

Part of the reason is that when the insurance is offered directly by the insurance company, such as Allianz or Direct Asia, there is no middleman.

In contrast, when you purchase travel insurance through an airline, they tend to receive a portion of the price of insurance as a commission. Thereby, inflating the price that a consumer ends up paying. Therefore, you can eliminate the middleman and pay a lower price by going directly to the insurance company.

Singapore AirlinesSilkAirTigerAirJetStar Asia AirwaysAverage of Insurance Companies
Personal Accident & DeathS$200,000S$100,000S$25,000S$20,000$308,501
MedicalS$200,000S$500,000S$10,000S$20,000S$563,704
Evacuation & RepatriationS$300,000S$300,000S$25,000S$50,000S$987,931
Trip InconvenienceS$5,000S$1,000S$1,500Original Flight Cost$S$16,135
Trip CancellationS$5,000S$5,000Original Flight CostOriginal Flight CostS$10,685
Trip DelaysS$1,000S$1,000S$450S$1,040S$1,132
Baggage Loss/DamageS$3,000S$3,000S$1,500S$1,000S$5,449
Baggage DelayS$1,000S$1,000NoneNoneS$1,072
Cost*S$55S$45S$18.99$77.95S$48

*Cost shown assumes a 1-week trip within Asia. The majority of costs are maximum limits. Please consult the summary of benefits for each policy before making any traveler’s insurance decision.

As seen above, there are significant differences in the coverages provided by each Singapore-based airline. Therefore, it is important to understand the types of risks you are facing when travelling.

For a business traveller, a baggage delay could result in a missed meeting. For a personal traveller/ adrenaline junkie, the personal accident and medical coverage will be most critical.

It is also important to note that majority of these policies are priced for travellers aged between two and 70 years old. If you are over age 70 or travelling with an infant, there may be special pricing requirements to consider.

It is best to assess risks beforehand and identify which travel insurance suits you and your family the most.

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ValuePenguin is personal finance company based in New York. DJ is responsible for building ValuePenguin's presence in Asia, from researching personal finance topics in the region to building relationships with financial and media institutions. He previously worked as an investment analyst at leading hedge funds in New York including Cadian Capital and Tiger Asia. His expertise is in the global technology, consumer and financial industries. He graduated from Yale University with a degree in Economics, and speaks Korean, English and Mandarin Chinese.
SVP @ ValuePenguin
ValuePenguin.com is a personal finance website that conducts in-depth research and analysis on a variety of topics from credit cards, loans, insurance, budgeting to investing.

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