Travel&Tour Report

8/3/2019 Travel&Tour Report

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UiTM ALOR GAJAH, MELAKA

FACULTY OF HOTEL AND TOURIRM MANAGEMENT

HTT 310

TRAVEL & TOUR AGENCY MANAGEMENT

TASK 2 : INSURANCE

TAKAFUL IKHLAS Vs. ETIQA INSURANCE BERHAD

Prepared by:

NAME MATRIX NUMBER

SARAHUSNA BINTI ROIZAN 2010448112

NURWAHIDAH BINTI RABI 2010423428

SUHAILA BINTI KASBAN 2010261066

GROUP : HM111 4C

LECTURE : MADAM CHEW SZE-SIONG

TABLE OF CONTENT

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NO. TOPIC PAGE

1.0 Introduction of Travel Insurance1.0.1 Introduction of Takaful Ikhlas

1.0.2 Introduction of Etiqa Insurance Berhad

2.0 Description of Takaful Ikhlas and Etiqa Insurance Berhad

3.0 Additional Information/ Comment of the Product

3.0.1 Takaful Ikhlas Product Features3.0.2 Etiqa Insurance Berhad Product Features

4.0 Conclusion

5.0 Reference

1.0 Introduction of Travel Insurance

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You have spent months and months to plan your dream vacation. Gathering travel info over

numerous websites and asking around for recommendations of the best places to visit and you are

pretty sure that this coming vacation will be your best ever. But it seems that things may not work asperfect as planned, or maybe a little injury may ruin your dream holiday. Don't let those unforeseen

misfortunes mess your vacation mood or leave you a large bill to settle.

A good way to protect yourself from the problems that crop up during your travels is to buy

travel insurance. Not ensuring you are safely covered on your vacation but, do not think that something

would not happen to you especially if you are planning an adventure-filled vacation. So, the best way is

to take a travel insurance.

Many millions of travelers and holiday makers every year purchase some form of travel

insurance, but few people know really what it is and how it can be defined. If you know what is

included, and what is not you will be able to make the most of your protection.

In Malaysia, there are many insurance companies that offer various combinations of coverage to

meet the needs of its customers. Among the insurance companies including, Kurnia Insurance, MCIS

ZURICH Insurance Berhad, Tokio Marine Insurance Berhad, Etiqa Insurance Berhad, Takaful Ikhlas,

Prudential Assurance Malaysia Berhad and others.

You can take the course of policy for yourself and/ or your family members. The amount of

compensation payable is based on the set for each family member and the total can not exceed the total

sum insured. But, in some travel insurance policies, if you exceed a certain age limit, you may not be

able to purchase travel insurance.

Here we would like to highlight two of the insurance company which are Takaful Ikhlas and

Etiqa Insurance Berhad.

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1.0.1 Introduction of Takaful Ikhlas

Travel insurance is not only important in view of the fact that a person can be rest assured that

they are financially protected against undesirable incidents as they travel abroad which may lead to not

only bodily injury or loss of life; the cover afforded normally extends to other benefits such as loss ofbaggage, hospitalization, cancellation or curtailment etc. Such protection is provided 24 hours and

worldwide.

Ikhlas Kembara will cover travelers against such mishaps whilst traveling for reasons either for

performing Umrah to the Holy Land or to other destinations for the purpose of business or pleasure. It

allows a person with total peace of mind since the covers starts from the moment he leaves the house

for the trip, whilst on the trip until the moment he arrives home.

1.0.2 Introduction of Etiqa Insurance Berhad

Etiqa Insurance Berhad is the Insurance & Takaful arm of Maybank Group. They pride

themselves on their comprehensive policies without any jargon or hidden clauses, and more

importantly, without any catch. Etiqa Insurance Berhad, place people over their policies.

Today, Etiqa Insurance is a true multi-channel distributor of Insurance and Takaful products via

its 23,000 agency force, 30 Insurance and Takaful branches, more than 450 Maybank branches, ATMs

and other third-party banks, providing full accessibility and total convenience to customers, unmatched

by any other.

Experience hassle-free holidays with our Vacation Shield travel insurance. Opt for your family

plan to enjoy attractive rates. Special features of Vacation Shield include no age limit, medical

evacuation & repatriation coverage, medical reimbursement, trip cancellation & loss of deposit,

hospital allowance, enhanced cover for drive trip to Malaysia such as emergency towing, roadside

repair , vehicle repatriation, vehicle rental, alternative travel, police report, locksmith referral, hotel

accommodation and claims procedure .

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2.0 Description of Takaful Ikhlas and Etiqa Insurance Berhad.

Although both are the insurance company that offers travel insurance, but the policy set by each

company is different according to the requirements of their customers, and it changes from time totime.

As well as Takaful Ikhlas, the insurance policy can be extended if the original policy has not

expired. However, in such cases are rare. This is because, before a person go for travel, he/ she would

planning that holiday with the best except there are constraints that can not be avoided. If this situation

happen, the customer must inform to Takaful Ikhlas and they will do an a announcement that include

additional period of cover and additional charge according to prior rate. In Etiqa Insurance Berhad, the

insurance policy also can be extended if the original policy has not expired. But, it depends on your

reason. If the underwrite allow you to do that, the insurance company will let you know what procedure

would you need to take depends on your needs. Underwriter is a person who know well and reallyexpert about something and they have the right to make decision in order to make their company

gained profit.

In Takaful Ikhlas, the particular insurance can not be issued to a customer traveling from abroad

to the Malaysia. It just issued to a customer from Malaysia only. But, some insurance by Etiqa

Insurance Berhad can be issued to a customer traveling from abroad to the Malaysia.

Insurance by Takaful Ikhlas and Etiqa Insurance Berhad cannot be sold to non-Malaysia. Both

insurance can only be sold to Malaysian citizens only. In addition, can also be sold to permanent

residents who have an address in Malaysia.

In Takaful Ikhlas, if the operator alters a holiday and offers cancellation with full refund,

the Takaful Ikhlas will not be refund of the premium. This is because the holiday is already

happen or had happen. But if the holiday not happen yet, the full refund will be there because no

cost out from the holiday. But in the Etiqa Insurance Berhad, if the operator alters a holiday and

offers cancellation with full refund, the Etiqa Insurance Berhad will refund on the premium with

condition the cancellation should with the reasons that can be accepted. For example, if the

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economics of the country is slip down and have big effect to the customer and the operator alters.

In Takaful Ikhlas, they will start issued cover policy on two or three days before travel. So

those not have to change the date of policy if the tour operator alters a holiday. But if it happen,

the charge will be taken depends on the percentages that the policy had been set. On the EtiqaInsurance Berhad, they do not have to change the date except if the customer wants to cancel and

replace with new insurance and date. The extra paid will be taken if the cost for the new policy is

more expensive than before.

Takaful Ikhlas has provided two types of travel insurance. So the policy holder can only

choose either one of it. The customers have their right to choose which one policy that they want

to take. But, it is differ from Etiqa Insurance Berhad, where the customer can increase the cover

of the policy. The charge will be taken depends on the rate of the increases in terms and condition

that may apply. And also need to consult to the person in charge.

The Takaful Ikhlas will not cover the policy holders jewellery, cameras, video equipment

and others treasure. The customer has been advised to do not bring all that items. But, if they still

want to bring it, that's all under the responsibility of them. Differ from the Etiqa Insurance

Berhad the policy holder is advised to take extra premium charge but on different types because

the treasure is under the general insurance. The charge will be increase depends on the treasure

and also the place they want go. If the country they go is critical or dangerous place, more charge

will be taken.

Dangerous activities such as hang-gliding and mountaineering will not be covered by the

Takaful Ikhlas. However, there is also some other insurance companies will cover for hazardous

activities. But, the policy holder must pay more for other charges which is not include in the packages

that offered by insurance companies. In Takaful Ikhlas, they will also not accept the policy holder who

want to pay more to be covered for hazardous activities. This company fully follow on what the

packages offered to the policy holder. In short, hazardous activities is not include in Takaful Ikhlas

packages because the probability of accident occur during doing or joining the hazardous activities is

higher. Takaful Ikhlas will not cover every single cent of the the person. It is all under their own

responsibility.

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Apart from Takaful Ikhlas, there is also another insurance company which is very popular

among Malaysians, known as Etiqa Insurance Berhad. This insurance company is a bit different from

Takaful Ikhlas. Usually, this company will not cover for hazardous activities, but certain will be

covered and they must referred to the underwriter to make a confirmation. If the underwriter approvethe cover insurance for hazardous activities, then it will include loading. Loading is a time (interval)

used by the underwriter to make decision. The policy holder whom apply the cover for hazardous

activities need to pay an extra payment along the loading. Policy holder can pay more to be covered for

hazardous activities, but it must be refer to the underwriter. How much the policy holder need to pay

for covered for hazardous activities is also depends on the underwriter.

Takaful Ikhlas also strictly has no excess amount for personal accident in the event of a claim. It

will not be happen even though they bringing up this case to the court. Takaful Ikhlas just follow the

maximum on what they have offered in the packages. And for excess amount for personal accident in

the event of a claim is depends on the companys guideline. Company will cover for medical expenses

if the policy holder involved in an accident. But, the company will be cover for RM500 and above for

medical expenses. If there is below RM500, company will not cover for medical expenses. The policy

holder need to use their own budget.

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3.0 Additional Information/ Comment of the Product

3.0.1 Ikhlas Product Features

Ikhlas Kembara offers 7 different kind of benefits with features as shown below:

Benefit Plan A (RM) Plan B (RM)

Accidental death 10000.00 20000.00

Immediate death expenses 500.00 1000.00

Cancellation or curtailment 1000.00 2000.00

Baggage cover 1000.00 with limit of 200.00 per

item

2000.00 with limit of 200.00 per

item

Medical Expenses 1000.00 2000.00

Hospitalization Benefits 2500.00 5000.00

Personal Liability 50000.00 100000.00

This product is not intended to compete with other travel policies or coupons available in the

market. It is targeted at Muslim-travel package tourists.

Ikhlas Kembara provided a simple and affordable plan for everyone. The table of rates is

prepared according to both plans, area of destination and duration of trip.

Duration

(day)

Malaysia, ASEAN Countries and

Saudi Arabia

Other Countries

Plan A (RM) Plan B (RM) Plan A (RM) Plan B (RM)

1 to 5 3.00 5.00 4.00 6.00

6 to 10 6.00 10.00 8.00 12.00

11 to 18 10.00 16.00 13.00 17.00

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19 to 31 15.00 20.00 18.00 23.00

Each additional week thereafter

to the maximum period of 180

days

3.00 5.00 4.00 6.00

a) Contribution is not inclusive of stamp duty

b) Child below 18 years old can also covered under this plan. Sum covered for child will be reduced by

50% under each plan and simultaneously, 50% of the individual plan contribution will be charged to

him.

Underwriting consideration such Issue Ages, Issue Limits and Coverage Terms. The description

as below:

Issue Ages : 1-65 Years, age next birthday. For age above 65, please refer to underwriting for

age loading.

Issue Limits : Minimum - 1 person

Maximum subject to underwriting decision.

Coverage Terms : Short term cover

3.0.2 Etiqa Insurance Berhad Product Features

For travelers, travelling to destinations within Malaysia, three levels of travel insurance are

available. All three plans are available to residents of Malaysia travelling within Malaysia and include

cover for travel accidents, medical expenses and repatriations (due to an accident), as well as travel

inconveniences.

Cover for cancellation applies from the moment of policy issuance, while the rest of the benefits

become effective immediately upon leaving your home in Malaysia to commence your journey. The

policy expires upon the your return to the point of departure, or 30 days after the initial departure, or

when you leave Malaysia, whichever is earlier. Cover will be automatically extended, free of charge,

until your journey can be completed should your return home be delayed due to injury, illness or delays

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in public transport.

Cover will be automatically extended, free of charge, until your journey can be completed

should your return home be delayed due to injury, illness or delays in public transport.

Please note that product benefits, premium collection, and claim payments are all displayed and

transacted in Malaysian Ringgit (MYR), and that no excesses or deductibles apply to the benefits

presented below:

Domestic Travel Insurance Benefits (in MYR)Domestic Basic

Plan

Domestic Value

Plan

Domestic Premier

Plan

MEDICAL AND TRAVEL ACCIDENT BENEFITS

Emergency Medical And Dental Expenses Up to 5,000 Up to 10,000 Up to 20,000

Emergency Medical Assistance Or Medical

Evacuation in MalaysiaUp to 100,000 Up to 100,000 Up to 100,000

Hospital Confinement Allowance - -150 per day

Up to 1,500

Repatriation of Mortal Remains Up to 100,000 Up to 100,000 Up to 100,000

Emergency Travel And Accommodation

ExpensesUp to 500 Up to 1,000 Up to 1,500

Accidental Death And Disablement

Adults (aged 18 to 70 years inclusive)

Seniors (over 70 years)

Children (under 18 years)

Up to 100,000

Up to 50,000

Up to 6,250

Up to 100,000

Up to 50,000

Up to 6,250

Up to 100,000

Up to 50,000

Up to 6,250

TRAVEL INCONVENIENCE BENEFITS

Luggage & Personal Effects Up to 2,000 Up to 2,500 Up to 3,000

Luggage Delay250 per 6 hours

Up to 250

250 per 6 hours

Up to 500

250 per 6 hours

Up to 750

Travel Delay150 per 6 hours

Up to 1,000

150 per 6 hours

Up to 1,500

150 per 6 hours

Up to 2,000

Trip CancellationUp to Airfare

ValueUp to 2,500 Up to Trip Value

Trip CurtailmentUp to Airfare

ValueUp to 2,500 Up to Trip Value

Personal Liability Up to 500,000 Up to 750,000 Up to 1,000,000

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For travelers travelling to international destinations from Malaysia, three levels of travel

insurance are available. All three plans are available to residents of Malaysia and include cover against

travel accidents, medical expenses and repatriations, as well as travel inconveniences.

Cover for trip cancellation applies from the moment of policy issuance, while the rest of the

benefits become effective immediately upon leaving your home in Malaysia to commence your

international journey. The policy expires upon your safe return to your home in Malaysia, or 180 days

after the initial departure, whichever is earlier. Cover will be automatically extended, free of charge,

until your journey can be completed should your return home be delayed due to injury, illness or delays

in public transport.

Please note that product benefits, premium collection, and claim payments are all displayed and

transacted in Malaysian Ringgit (MYR), and that no excesses or deductibles apply to the benefits

presented below:

International Travel Insurance Benefits

(in MYR)

International Basic

Plan

International Value

Plan

International Premier

Plan

MEDICAL AND TRAVEL ACCIDENT BENEFITS

Emergency Medical And Dental

Expenses Up to 50,000 Up to 300,000 Up to 500,000

Emergency Medical Assistance Or

EvacuationUnlimited Unlimited Unlimited

Overseas Hospital Confinement

AllowanceUp to 5,000 Up to 15,000 Up to 20,000

Repatriation of Mortal Remains Unlimited Unlimited Unlimited

Emergency Travel And

Accommodation ExpensesArrangement only Up to 5,000 Up to 7,500

Accidental Death & Disablement Up to 100,000 Up to 200,000 Up to 200,000

TRAVEL INCONVENIENCE BENEFITS

Luggage & Personal Effects Up to 2,500 Up to 5,000 Up to 7,500

Loss of Travel Documents - Up to 5,000 Up to 5,000

Theft of Cash - Up to 750 Up to 800

Luggage Delay - Up to 750 Up to 1,500

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Travel Delay Up to 2,400 Up to 3,250 Up to 4,200

Travel Misconnection - Up to 500 Up to 1,200

Flight Overbooking - Up to 200 Up to 250

Trip Cancellation Up to 5,000 Up to 20,000 Up to Trip Value

Trip Curtailment Up to 5,000 Up to 20,000 Up to Trip Value

Personal Liability Up to 500,000 Up to 1,000,000 Up to 1,500,000

Home Protection - Up to 1,000 Up to 2,000

4.0 Conclusion

In a nutshell, travel insurance is very important to all of us. Before we embark our journey,

particularly if we are visiting an unfamiliar place, it is essential to take out our travel insurance. That

way we can be rest assured that if anything goes wrong, we are covered and our dream trip would not

turn into nightmare. Takaful Ikhlas and Etiqa Insurance Berhad are the famous insurance companies in

Malaysia which offered the best packages to the travelers. A good travel policy must provide complete

information so that it will be easy for the travelers to buy their insurance. Even though takin the travel

insurance cover could add to the mounting travel expenses, in the long run, an insurance cover may

turn actually turn out to be a blessing. The cover provides protection against natural and man made

calamities and we do not incur major financial losses in case of an unforeseen event during our travel

abroad.

5.0 Reference

1. Encik Mohd Shamsul Bin Alias

Takaful Ikhlas Business and Development Executive2. http://www.malaysiaairlines.com/my/en/book-and-plan/travel-insurance/product-

information.html (12 January 2012)

3. http://www.etiqa.com.my/ENGLISH/Pages/default.aspx (05 January 2012)

4. Bangunan Etiqa, 350 & 351, Taman Melaka Raya, 75000 Melaka

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