Over the years, many young people have joined the Working Holiday Scheme to gain first-hand experience of living in a foreign culture and to broaden their horizons, while taking up short-term employment to subsidise their travelling costs. Working holiday insurance provides indemnification against loss or liability so policyholders can experience living abroad without fear or worry.
Working holiday insurance mostly covers costs of outpatient treatment, hospitalisation, surgery, prescription drugs, and laboratory tests. Some working holiday insurance plans provide diversified protection such as hospitalisation cash allowance to minimise the income loss of the insured from being unable to work due to sickness.
Some working holiday insurance plans in the market offer protection against loss or damage of luggage during travel. The policyholders will be reimbursed for replacement fees if they lose their passport, flight tickets or credit cards.
Personal liability protection is also covered in working holiday insurance. It indemnifies the insured person against legal liability to third parties arising as a result of accidental death or bodily injury, as well as loss of or damage to their property caused by negligence.