It is not okay to say, “My credit card has an attached insurance policy…”! Pitfalls of “overseas travel insurance” attached to credit cards

Why you need to reconfirm your credit card’s “overseas travel insurance” now… “Revisions” continue to be made to the credit card’s “overseas travel insurance”.

The long-awaited summer vacation is here. Insurance” is very important to be prepared for your trip. In addition, one of the must-have items to bring overseas is a credit card, many of which come with “overseas travel insurance.

If you are traveling abroad for a few days or to a nearby country, you may think that you are fine because you have insurance attached to your credit card. In fact, in recent years, the rules for using the insurance attached to credit cards have been continuously being “revised. It is quite possible that you may find yourself in a situation where you cannot use the insurance after a few years.

If you have a credit card that you joined about 10 years ago, please be sure to check it.

Kenji Matsuoka, a money writer and expert on the credit card market, cautions that “things have changed since the old days. According to Mr. Matsuoka, the contents and conditions of overseas insurance coverage attached to credit cards have been conspicuously revised over the past decade or so.

It is generally well known that medical costs are high overseas,” he says. In addition, the health insurance and high-cost medical care systems available in Japan are basically unusable, and the cost of hospitalization and surgery in a foreign country can amount to several million yen or even tens of millions of yen. For this reason, overseas travel insurance is important, and it is necessary to check the contents of your credit card’s supplemental insurance once again.

Which is your credit card’s overseas travel insurance, “automatic” or “supplementary”?

There are two types of overseas travel insurance attached to credit cards: “automatic” and “supplementary”. Automatic incidental” means that the insurance will be applied as long as the cardholder owns the card. On the other hand, “incidental use” insurance does not apply unless the tour fee is paid with the card.

Usage Incidental”: Detailed “conditions” for insurance coverage.

Even for “supplementary coverage,” there are differences in coverage conditions. For example, there are cases where the insurance does not cover transportation expenses related to travel expenses such as airline tickets and tour fees related to travel, while in other cases, train fare before going to the airport is also acceptable. However, the latter is becoming more and more common in recent years,” said Kenji Matsuoka.

For example, in the case of the “Rakuten Card” with “supplementary coverage,” the general card and the gold card require payment of the “cost of an organized tour” (an overseas package tour booked through a travel agency) prior to departure from Japan in order to be covered by the insurance policy. The insurance does not cover only airline tickets or hotel payments such as local and domestic pre-night and post-night stays.

On the other hand, the Rakuten Premium Card, which many travelers carry, has “automatic coverage” for “accident treatment expenses,” “illness treatment expenses,” and “emergency medical services expenses,” but “loss or damage to personal belongings” (totaling 500,000 yen) is only covered up to 300,000 yen, and the remaining 200,000 yen is covered only if the card is used for public transportation or the “arranged tour” is paid before departure from Japan. The remaining 200,000 yen will be covered if the card is used to pay for public transportation or the “arranged tour fee” prior to departure from Japan. The maximum amount of “Accidental death and disability” is not applied unless the same usage conditions are met.

The AEON Card Gold Card and AEON Suica Card have “incidental use” coverage, which means that insurance will be applied as long as the “fee for organized tour” or “fee for public transportation” (train, air, bus, cab, etc.) is paid with the card prior to departure from Japan. General Cards do not have overseas travel insurance.

ANA Card” and “JAL Card” should not be overconfident.

ANA CARD” is an “automatic” card, but it only covers “death or disability due to injury” and “emergency medical expenses,” and does not cover “medical expenses,” “liability,” and “damage to personal belongings,” which are often used for overseas travel insurance.

In the case of Wide Gold Card, ANA To Me Card PASMO JCB GOLD, and Super Flyers Gold Card, “JCB” cardholders are covered in advance for the following items JCB’s overseas travel insurance tends to be more generous than other brands.

On the other hand, for “VISA/Master” cards, which are mostly “supplementary coverage”, the rules have changed for travel after October 16, 2013, and payment for public transportation such as airplanes, trains, ships, cabs, and buses after departure from Japan will not be covered. The coverage will not apply to payments for public transportation such as airplanes, trains, ships, taxis, and buses after leaving Japan.

Actual experience (1): Insurance coverage for injuries sustained during travel

There is nothing wrong with not using travel insurance. However, when you actually encounter a problem while traveling and use the insurance, you will realize how much you appreciate it.

Last year, I slipped on the stairs at a train station on my way to the airport after leaving home, injured my leg, and had to go to the hospital.

The insurance attached to the “JAL CLUB-A Gold Card” (VISA) that he had was limited to 1.5 million yen for injury treatment (limit per accident), so he separately purchased a policy for 50 million yen for “medical treatment and rescue expenses” from another insurance company before his departure. When traveling abroad, I worry about injuries and sudden illnesses only with the contents of the credit card’s supplementary insurance, so I purchase a separate voluntary insurance policy each time I travel. The premium for this insurance was 1,490 yen for nine days in Europe (repeater discount applied).

The actual cost was a total of 399 euros (about 68,000 yen) for medical examinations and tests at the local hospital and cab fare to the hospital. In addition, the hospital after returning to Japan cost approximately 2,200 yen. After the treatment was completed, all receipts, proof of travel (round-trip airline ticket images), and insurance application forms were filled out and sent online to the insurance company, and the full amount was paid a few days later. Because the cost was not high, a hospital certificate was not required.

The medical expenses incurred at this time were within the range of 1.5 million yen, so I used the insurance attached to my credit card. I reported to the insurance company, which served as the contact point, by line phone from the site, and we communicated by e-mail thereafter. If the coverage was exceeded, he was told that he could use a separate insurance policy.

Actual experience 2] Insurance coverage for smartphone theft while traveling

Also, more than 10 years ago, my iPhone was stolen in Spain. I waited in line at the theft desk at a nearby police station, and after a one-on-one conversation with a police officer in English, I obtained a theft certificate and submitted it along with the receipt for my iPhone after returning to Japan. At that time, I used a separate overseas travel insurance policy that was not attached to my credit card, and I first informed the insurance company that my iPhone had been stolen from the local area.

The theft certificate issued by the local police is very important, and I heard that without it, it is very difficult to pay for the insurance. If you are on a tour and it is difficult to go to the local police because of the tight schedule, you may ask your tour guide to certify the theft. The insurance coverage is limited to 100,000 yen per item, even if it falls under “damage to personal effects” and covers up to 500,000 yen, etc. Unlike the use of insurance for injuries and illnesses, the premiums may increase the next time and the next time after using it once.

Why it is absolutely necessary to purchase insurance separately even if you have a credit card…but the combination is OK!

In the case of “Rakuten Card” (general card), the coverage includes “death and disability due to injury” (maximum amount: 20 million yen), “medical treatment expenses for injury” (limit: 2 million yen per accident), “medical treatment expenses for illness” (limit: 2 million yen per illness), “liability (no co-payment)” (limit: 30 million yen per accident), “personal belongings damage” (annual limit: 2 million yen), “rescue expenses” (annual limit: 2 million yen per accident), “medical treatment expenses” (limit: 2 million yen per accident), “medical treatment expenses” (limit: 2 million yen per accident), “medical treatment expenses” (limit: 2 million yen per accident), and “medical treatment expenses” (limit: 2 million yen per accident). (limit of ¥30 million per accident), no “loss or damage to personal belongings,” and “rescue expenses” (annual limit of ¥2 million). However, these should be considered “minimum.

In addition to the above, an overseas travel insurance policy sold by a non-life insurance company that you purchase voluntarily offers coverage for “delayed checked baggage” and “trip cancellation expenses,” among others. The insurance will also cover lost baggage such as lost or delayed checked luggage, which is a common occurrence in overseas travel, as well as sudden hospitalization of family members or cancellation of a trip due to suspension or cancellation of transportation, etc.

According to Kenji Matsuoka, multiple credit card supplementary insurance policies and voluntary overseas travel insurance policies can be combined.

In the case of multiple credit card travel insurance policies, the “highest amount” will be applied to “accidental death and disability,” and in the case of credit card travel insurance plus optional overseas travel insurance, the “highest amount” will be applied to “accidental death and disability”. In the case of credit card travel insurance and optional overseas travel insurance, the “total” amount of compensation is applied.

On the other hand, the maximum amount of “compensation other than accidental death or disability after injury” is the “total” amount of each insurance policy.

Therefore, if you have more than one credit card with “supplementary coverage,” you can raise the maximum amount by paying separately for the travel expenses covered by the insurance.

The premiums for voluntary overseas travel insurance, for example, with Sony Assurance, start at ¥870 for 3 days in Korea, ¥2,050 for 5 days in Hawaii, and ¥2,740 for 7 days in the U.S. for a set of “Easy Course” and “Premium Saving Plan”. In addition to basic coverage such as “accidental death or death due to illness,” “accidental disability,” “medical treatment and rescue expenses,” “personal liability,” and “damage to personal belongings,” the policy also offers optional coverage such as “trip cancellation expenses (extended type),” “trip interruption expenses,” and “flight delay (flat rate payment type). The amount of coverage for each item can be selected, with premiums starting at a minimum of 500 yen.

Other insurance options include JI Accident & Fire’s “t@biho,” Sompo Japan’s “off!

Experts warn, “Medical costs differ by a single digit.

Finally, we asked Kenji Matsuoka about other points to keep in mind when using credit card-based overseas travel insurance.

When a representative buys an airline ticket, of course, if he or she has a card with a “use incidental” feature, the person who does not use the card must be a family member to be compensated. Be careful when traveling among friends. Even in the case of family members, if you do not have a family card, you may not be compensated and the coverage may differ.

In addition, medical expenses for sudden illness or injury while in a foreign country “have become very expensive due to recent inflation,” he says.

Medical costs in other countries are a digit higher than in Japan,” he said.

An initial medical fee of 2,000 to 3,000 yen in Japan will cost 20,000 to 30,000 yen overseas, and a hospital stay of 20,000 to 30,000 yen per night will cost 200,000 to 300,000 yen overseas. If it is a surgery, you have to be prepared to pay 10 million yen.

If the premium for the optional non-life insurance you purchase separately is less than 1,000 yen, you may feel a bit nervous, but if it is between 1,000 yen and 2,000 yen, the amount of coverage will be about one digit higher, and you will have a completely different sense of security during your trip. If you are at all concerned, we recommend that you take the plunge and purchase travel insurance from a non-life insurance company.