If you travel outside your home country for business or pleasure, a travel insurance policy is very neccessary. It is possibly the best way to protect you against medical costs related to illness or injury, and against theft or loss of possessions and other accidents that may occur during your travels. With this in mind, we recommend that you purchase necessary travel insurance, which provides coverage for international travelers. You should ask for details on any policy before you decide to make a purchase. In addition, buy travel insurance as early as possible before you start your travels.

Travel Agencies' Liability Insurance

At present, most of the International Travel Services in China only provides 'Travel Agencies' Liability Insurance' to their foreign clients. This may be not enough for any sudden problems that may arise during a tour. Therefore, some other kind of personal accidence insurance, purchased in your own country, is also necessary.

China National Tourism Administration (CNTA) issued a regulation in May 2001 which instructs all travel agencies to provide 'Travel Agencies' Liability Insurance' to protect tourists' rights and interests, effective from September 1, 2001. This insurance policy replaces the original Personal Accident Insurance and becomes the new legal-based practice in China.

What's the difference between 'Travel Agencies' Liability Insurance' and the previous 'Personal Accident Insurance' ? The most important difference is that the former policy places primary responsibility for the policy-holder, the insurant and the beneficiary all on the travel agency. In other words, for any losses, theft, injury or death directly caused by travel services, they take the duty to claim compensation for their clients from the insurance agent. By contrast, in the second policy, the travel agency just serves as the deputy of the tourist; in case of any accidents, they do not have any direct liability. Moreover, this policy only insures against personal accidents, excluding possession loss and other losses.

General Principles of 'Travel Agencies' Liability Insurance': Any travel services dealing with tourism should provide this policy for their clients. The insurance agency will compensate the tourist should there be any personal or property damage during the activities arranged by the travel agency.

Policy Coverage: The policy covers the following accidents if caused by the travel agency:
a. Compensation for the injury or death of tourists during their tour.
b. In case of the 'a' situation, the fare related to the injured party's treatment, or the disposal expense of decedent's body.
c. Necessary aid to the injured, sometimes the family's visitation and minor parties' repatriation fees, payment for doctors, and logical amends for the delayed or cancelled tour.
d. Loss, damage or theft of the traveler's belongings
e. Legal fees if a lawsuit arises because of the travel agency's liability.

Travelers who take part in a tour arranged by a travel agency should confirm that their physical conditions allow for participation in planned activities; any expenses caused by connatural illness will then be the traveler's responsibility. They should obey the guide's arrangements, trying to protect minors in the group and personal property. In addition, the insurance policy does not include any compensation related to travelers' personal offences. The policy also does not take responsibility for any losses after the tour ends, outside the guided tour or during designated free time.

Compensation standard: The National Tourism Administration also regulated the compensation standards for different cases. For domestic travel inside China, the maximum amount is RMB 80,000 Yuan (US$9,700); and for Chinese people traveling overseas or foreign visitors to China, RMB 160,000 Yuan (US$19,400) is the maximum.

At the same time, the administration stipulated compensation limits for tourism agencies. A tourism agency's annual compensation must be within 2 million Yuan (US$243,902) if it specializes in domestic trips, while an international tourism agency's limit is 4 million Yuan (US$487,804).

If tourism agencies launch highly risky travel services, they must coordinate with relevant insurance companies about related compensation standards and limits.

Notes: Tourists should buy personal insurance in their home country before joining in a tour arranged by travel agency to insure against any unforeseen circumstances.