Pet owners warned over wide gaps in insurance coverage

The Consumer Council has urged pet owners not to choose insurance plans based only on premiums, after finding wide differences in costs, coverage and claim arrangements across the market.

The watchdog compared 24 pet insurance plans and found that some products now offer more detailed coverage, including critical illness cash benefits and diagnostic imaging. However, many of these newer benefits are optional add-ons that require policyholders to pay extra premiums.

The council said the final amount borne by owners could vary significantly even for pets of the same breed and age, because policies are subject to different deductibles, benefit sub-limits and co-insurance ratios.

It also noted that plans with higher premiums do not necessarily offer lower deductibles.

Nearly 70 percent of the plans set the maximum age for first-time enrollment at eight years old or below. When pets reach an advanced age, policy renewal may also be subject to individual underwriting or discretionary approval, the council said.

Meanwhile, as more pet-friendly venues open in Hong Kong, 19 of the plans reviewed included third-party liability cover. However, the watchdog said such coverage is limited to legal liability and does not cover all complaints, disputes, nuisance, fright or moral compensation.

Insurers may also reject claims if owners fail to keep their pets properly leashed or muzzled, it added.

The Consumer Council called on the insurance industry to improve transparency in policy terms. It also advised pet owners to read the terms carefully before taking out a policy, taking into account their pet’s age, health needs and their own financial situation instead of focusing only on the premium.
 

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