Tibet Travel Insurance

China National Tourism Administration (CNTA) issued a Regulation in May, 2001, which orders all travel agencies to buy insurance for their clients. The Regulation became effective on September 1, 2001. According to the Regulation, in order to protect tourists’ interests and legal rights, especially those traveling to dangerous places, the National Tourism Administration issued a notice requiring all tourism agencies to buy “travel agencies’ liability insurance.” This insurance policy replaces the original Personal Accidence Insurance and becomes the new legal-based practice in China.

– Insurance Scope

As required by the notice, tourism agencies concerned must make compensation to tourists or their dependents in the following situations:

-They must cover related costs of medicines, medical treatment, travel and accommodation charges if physical injury or death occurs;

-They must cover losses if tourists’ belongings are lost, broken or stolen;

-They must cover all legal costs for their tourists if lawsuits are brought against the agencies.

The Administration also stipulated related compensation standards:

The limit for compensation to a tourist on domestic trip is set at RMB 80,000 (US$9,700); and 160,000 Yuan (US$19,400) for a tourist traveling overseas.

At the same time, the Administration stipulated compensation limits for tourism agencies.

A tourism agency’s annual compensation must be within RMB2 million (US$243,902) if it specializes in domestic trips, while an international tourism agency’s limit is RMB4 million (US$487,804). If tourism agencies launch highly risky travel services, they must co-ordinate with relevant insurance companies about related compensation standards and limits.
This new Regulation will definitely improve the travel security environment in China.

– Insurance Time Limit

As for the inbound travel, the insurance time limit begins from the start of traveler’s tour and ends with the finish of the outbound procedure.

As for the outbound and domestic travels, the insurance time limit begins from the boarding on the vehicles that are ordered by travel agencies and ends with the leaving of vehicles that are ordered by travel agencies.

As for tourists who end their travel themselves, the insurance time limit ends with the ending of the tour.

Tourists who don’t travel according to the itinerary made by travel agencies cannot enjoy the travel insurance.

– Insurance Sum

The insurance sum bought by travel agencies cannot be under the basic standard as following:

1. Inbound travels: RMB300, 000 per tourist;
2. Outbound travels: RMB300, 000 per tourist;
3. Domestic travels: RMB100, 000 per tourist;
4. One-day travels (including inbound, outbound and domestic travels): RMB30, 000 per tourist.

In addition, travel agencies can consult with insurance companies on insurance sum of some special tour items such as climbing, shooting, floating according to different danger levels.