Travel Insurance - Don’t leave home without it says ACCA
When preparing for holiday, organising health insurance may not seem like a top priority. But in the unfortunate event of an accident or illness, health insurance will protect travellers from debts which could potentially cost them thousands of pounds, says ACCA (the Association of Chartered Certified Accountants).
Chas Roy-Chowdhury, Head of Taxation at ACCA says: “The old E111 form ceased to be valid in January 2006. If they do not have one already, British travellers planning to holiday in Europe this summer should remember to apply for the EHIC (European Health Insurance card) which provides free or reduced-cost emergency medical treatment in the European Economic Area (EEA) and Switzerland.”
The EHIC covers any medical treatment that becomes necessary during a trip due to accident or illness and any necessary treatment for a chronic disease or pre-existing illness. Those needing it will be required to make arrangements in advance for kidney dialysis and oxygen therapy. However, the EHIC will not cover recipients if getting medical treatment is the main objective of their trip.
The EHIC provides access to state-provided medical treatment only, and people will be treated on the same basis as an ‘insured’ person living in the country they are visiting, therefore not all treatments they might expect free from the NHS in the UK are covered. Some may have to make a contribution to the cost of their care in certain circumstances, although reimbursements are available.
The Department of Health urges holidaymakers also to take out comprehensive private insurance for visits to all countries, regardless of whether they are covered by the EHIC.
The EHIC is available to those who are ordinarily resident in the UK. It is valid for three to five years, so current holders should check that their card does not need to be renewed.
The EHIC is valid in Iceland, Liechtenstein, Norway and Switzerland as well as the European Union (EU) countries. The quickest and easiest way of obtaining the EHIC is online via www.dh.gov.uk.
Roy-Chowdhury concludes: “Although the EHIC is a low cost way of being covered one could question why it is not fully comprehensive. As holiday-makers are being encouraged to take out additional private insurance, there will some groups, such as the elderly, who will be disadvantaged as they will not necessarily be able to afford the added expenditure.”
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Notes to Editors
1. ACCA is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. We have 325,606 students and 122,426 members in 170 countries worldwide.
2. ACCA believes that globalisation of business requires one set of reporting standards. We favour principles-based, not rules-based standards, which is why we support the worldwide implementation of IFRS.
3. ACCA believes that tax systems should be transparent, simplified, fair and certain.
4. Complying with regulations affects SMEs disproportionately, which is why ACCA urges governments and standard setters to ‘think small first'’
For further information please contact:
Chas Roy-Chowdhury, ACCA Head of Taxation phone: +44 (0)20 7059 5976 / + 44(0)7710 707 516 e mail: chas.roy-chowdury@accaglobal.com
Helen Thompson, ACCA Newsroom phone: +44 (0)20 7059 5759 / + 44 (0)7725 498 654 e mail: helen.thompson@accaglobal.com