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 trip. 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 trip.

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

The Insurance Coverage

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

• Tourists' casualty (injury or death)
• Related expenses for medical treatment and related transportation fee
• Expenses related to the tourists' death and repatriating the body
• Expenses that occur when the necessary aid has been provided to tourists, 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 travel itineraries
• Loss, damage, and theft of tourists' 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 travel 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 travel agency, it is highly recommended that the traveler buy personal insurance in his or her home country prior to departure.