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Insurance
Insurance

More and more families are choosing to travel during their vacations. Although visiting new places is rewarding and exciting, sometimes unexpected contingencies occur that put a damper on your visit. Thus, to minimize unplanned damage and loss, travel insurance offers a safeguard, providing immediate help as well as reimbursement or payment for mishaps that may occur during your visit.


In China, most tour operators offer their clients Travel Agencies' Liability Insurance. Each insurance company must carry this coverage, however, only the issue caused by the agencies may be compensated, since the beneficiary (insured) is the agency.


Travel Agencies' Liability Insurance


Issued by National Tourism Administration of China (CNTA) on May 15, 2001, the Travel Agencies' Liability Insurance law was officially enacted on September 1st that year. Under this statute, every Chinese travel agency must provide their clients this insurance to guarantee the legitimate rights and interests of both the agency and its clients.


The Insurance Coverage


'Accidents' listed below which are caused by the travel agency may be compensated:


Visitors' casualty (injury or death)

Related expenses for medical treatment and related transportation fee

Expenses related to the visitors' death and repatriating the body

Expenses that occur when the necessary aid has been provided to visitors, including the transportation fee, dining and lodging costs of relatives visiting; payment for the staff of the travel agency and doctors; fees for postponing the tourists itineraries

Loss, damage, and theft of visitors' belongings

Legal costs incurred disputing the fault of travel agency

Other compensation agreed upon between the travel agency and the insurance company

Please note that this insurance only lasts for one year and the maximum amount of reimbursement for inbound visit from abroad is CNY160, 000 per person.


Since the Travel Agencies' Liability Insurance will not cover any expenses related to accidents outside of the control of the agency, it is highly recommended that the visitor buy personal insurance in his or her home country prior to departure.

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