Back to InsightsThe RM 80 Policy That Left a Malaysian Family with a RM 50,000 Bill
True story (anonymised): A Malaysian couple bought a RM 80 travel policy for a Europe trip. The husband had a heart attack in Germany. Total costs: RM 52,000. Their policy's overseas medical limit: RM 10,000.
They paid RM 42,000 out of pocket.
Travel insurance is the most mis-bought insurance product in Malaysia.
What Good Travel Insurance Covers
Emergency Medical & Hospitalisation (Most Important)
Overseas costs are dramatically higher:
- UK: RM 3,000–8,000/day
- Japan: RM 2,000–5,000/day
- USA: RM 8,000–25,000/day
Minimum: RM 500,000 medical coverage for non-ASEAN. RM 100,000 for ASEAN.
Emergency Medical Evacuation
Air ambulance: RM 50,000–150,000+. Look for unlimited or minimum RM 1 million coverage.
Trip Cancellation
Covers non-refundable costs if you cancel due to:
- Serious illness/injury (you or immediate family)
- Death of immediate family
- Natural disaster at destination
Does NOT cover: Changing your mind, work commitments.
Baggage Loss / Damage
Watch for: Per-item limits. A RM 5,000 camera may only be covered for RM 1,500 per item.
What Travel Insurance Usually Does NOT Cover
- Pre-existing conditions (unless declared)
- High-risk activities (need adventure sports rider)
- Unattended baggage theft
- War zones / travel advisory destinations
Single Trip vs Annual Policy
| Single Trip | Annual Multi-Trip | |
|---|---|---|
| Best for | 1–2 trips/year | 3+ trips/year |
| Cost | RM 30–150/trip | RM 400–900/year |
3+ trips/year? Annual is almost always cheaper.
Quick Checklist Before Buying
- Medical coverage ≥ RM 500,000 (non-ASEAN)
- Medical evacuation: Unlimited or ≥ RM 500,000
- Pre-existing conditions declared
- Adventure rider (if doing extreme activities)
- Check: Does my credit card already include travel insurance?
Many premium Malaysian credit cards include basic travel insurance — check before buying extra.
WhatsApp Tom Ng for the best travel insurance recommendation
