Is Covid-19 an outbreak or natural disaster? Hong Kong insurers tussle with policyholders over claims
- Complaints bureau chief tells consumers: don’t be lazy, check the fine print of your policy
- Overseas students forced to return home among those with disputes over travel claims
The Covid-19 pandemic has shown that Hongkongers need to be more thorough in checking the fine print of their insurance policies, according to a veteran consumer rights activist.
Pamela Chan Wong Shui, chairman of the Insurance Complaints Bureau (ICB), said there had been a rise in hard-to-resolve disputes related to the pandemic, especially complaints from policyholders over disrupted travel plans.
“Consumers should stop being lazy,” she said. “They should be smart, ask every question and get to the bottom of what will or won’t be covered before signing up for a plan.
“In the wake of the pandemic, they should ask their insurers: ‘How do you define Covid-19? Is it covered in the insurance policy, and how?’”
The bureau, formed by 114 insurance companies, provides a free dispute resolution option to work out complaints over personal insurance policies below the value of HK$1 million (US$129,000). Its independent complaints panel mediates between insurers and policyholders or their beneficiaries, and its rulings are binding.
“The challenges brought on by the Covid-19 crisis to the insurance sector are unprecedented,” said Chan, a former chief executive of the Consumer Council. “We’ve been receiving a rising number of travel insurance complaints this year, with more than half related to Covid-19.”
