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Why all Australians should take out travel insurance

 

Things you should know

Credit Card Insurance

 

For most Australians, overseas travel is a wonderful experience. Unfortunately, however, every day our consular officers deal with human tragedies involving the death, injury or hospitalisation of Australians abroad. Each year we handle over 20,000 cases involving Australians in difficulty overseas. This includes over 700 hospitalisations, 600 deaths and 100 evacuations of Australians to another location for medical purposes.

 

In cases where victims are not covered by travel insurance, such personal tragedies are further compounded by a long-term financial burden. Hospitalisation, medical evacuations, or even the return of the deceased's remains to Australia, can be very expensive. Daily hospitalisation costs in Southeast Asia regularly exceed $800; return of remains from Europe in excess of $10,000. The cost of medical evacuations from the United States regularly range from $75,000 to $95,000 and sometimes up to $300,000. The department has handled medical evacuations from nearby Bali in which costs have exceeded $60,000.

 

Unfortunately, not all of these cases involved travellers covered by travel insurance. Travellers who are not covered by insurance are personally liable for covering incurred medical and associated costs. As a result, we have known instances where families have been forced to sell off assets, including their superannuation or family homes, to bring loved ones back to Australia for treatment.

 

Despite these stark statistics, it is not the department's intention to discourage Australians from travelling, which in almost all cases is a very positive experience.

 

Only 0.6% of Australians travelling overseas encounter difficulty each year.

 

With accidents or illness often unavoidable, proper travel insurance is very important in this context. Of course, the all-too-common occurrence of theft and loss of personal belongings is also something all Australian travellers should insure against. Each year the department handles over 16,000 cases involving the welfare of Australians who have suffered illness, theft, robbery or assault.

 

In choosing a policy, we would note some insurance policies will not always cover claims made in those countries to which the Department of Foreign Affairs and Trade recommends against travel. For up-to-date travel advice, we recommend travellers consult and monitor this website.

 

For further information, contact the Insurance Council of Australia and the Insurance Ombudsman Service for guides on travel insurance for travellers. They cover the main issues to look for when selecting travel insurance to ensure you are appropriately and adequately covered.

 

Source -  http://www.smartraveller.gov.au/travel_insurance.html

 

 

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Things you should know

 

It’s crucial that you take the time to read your travel insurance policy carefully and ensure that before you travel you:

  • Understand the conditions, exclusions and limitations that may apply to your luggage and personal effects cover as they may vary from policy to policy.
  • Are aware of the steps you need to take to make a claim in the event something goes wrong.
  • Understand what you can expect from your travel insurer and what they expect of you.

 

This information is available in the Product Disclosure Statement (PDS) and policy wording of your travel insurance policy.

 

What are you covered for?

Generally, policies provide cover for the accidental loss or theft of your luggage and personal effects.

 

Is there an excess?

Check the value of the excess applicable to your policy.

  • An excess is a minimum amount you must pay toward your claim before your travel insurer covers the rest.
  • You may be able to remove standard excesses for an additional premium.

 

Are there any limitations?

Cover for your luggage and personal effects will be limited, so it’s important that you:

  • Check the per-item limit, as well as the total baggage cover provided.
  • Understand that cover for items such as jewellery, cameras, laptop computers, designer clothing, and other expensive items may be limited.
  • You may be able to increase the level of cover for your luggage and personal effects by paying an additional premium.

 

Are there any conditions?

Ensure that you understand the circumstances in which cover is NOT provided as conditions vary from policy to policy.

 

Are there any exclusions?

You may be surprised to learn that the following items might not be covered by your policy:

  • Items which are stolen when left unattended in a public place.
  • Electronic items such as cameras, computers, mobile phones & jewellery unless they are carried with you.
  • Items left in a motor vehicle for any period of time, particularly overnight.
  • Cash.

 

What happens if a loss occurs?

Get proof. You need to prove your loss so it’s important to make a report to the relevant authority, such as the airline, hotel or local police, within the timeframe required by your insurer, and obtain a copy of the report. If there are any witnesses to the loss, obtain their contact details or statements in support of your claim.

 

Read the claim form. When submitting a claim, give a clear account of the events that have caused your loss and ensure you submit the claim form with all required documentation to prevent delays in the assessment of your claim.

 

Ask before you travel

If you continue to have questions about your cover, make sure you contact your travel insurer for clarification before you travel.

 

Limitations on cover – existing medical conditions

 

Travel insurance policies usually won’t cover you for changes to or cancellation of your travel plans due to medical conditions that existed before you travelled. This means that if you get sick while travelling, with a condition that you previously knew about, your policy will not pay your medical costs.

 

This limitation also applies to the existing medical conditions of persons who are not travelling with you, but on whom your travel arrangements depend. For instance, if you want to change or cancel your travel plans because of an ill person at home, your policy might not cover your costs.

 

 

Information sourced:

Insurance Ombudsman Service

PO Box 561 Collins Street West

Melbourne, Victoria 8007

Email ios@insuranceombudsman.com.au

Toll free 1300 78 08 08

 

www.insuranceombudsman.com.au

http://www.smartraveller.gov.au/travel-insurance-ios.pdf

 

 

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Credit Card Insurance

Be aware that with this type of insurance, it’s the bank or credit provider that is treated as the insured under the policy – and not you – because it’s the bank or credit provider that has arranged the cover with the travel insurer.

 

That’s why it’s important that you obtain a copy of the wording from your bank or credit provider, read and understand the cover and ensure it meets your needs before you book your travel.