To Be On The Safe Side
THE SUNDAY AGE
Sunday November 5, 1995
One-third of Australian travellers go abroad uninsured. Is it worth the risk? Jennifer Grimwade unravels the fine print of travel insurance.
ASK any consul-general or high commissioner and you will hear grisly tales about travellers' troubles. But the really nasty episodes are about travellers facing disasters without any travel insurance.
When we're planning a fantastic holiday, we rarely think about things going wrong. But the truth is an average of 400 Australians a year die overseas, one-quarter of them from accidents.
The cost of medical care in Europe, and especially in the United States, can be astronomical, running into thousands of dollars a day. If trouble strikes, you may have no choice but to pay the bill yourself.
One-third of Australian travellers remain eternal optimists and choose not to take out travel insurance. It's a risky decision. According to Bob Gibson, general manager of AFTA Travel Insurance: ``If you can't afford travel insurance, then you can't afford to travel."
Perhaps one of the reasons Australians are reluctant to cover themselves is that travel insurance is a complicated business. It's essential you read the fine print and know your rights. These days travel agents are obliged to unravel the jargon and help you choose the most suitable policy, for they are all different.
AFTA, the Australian Federation of Travel Agents, considers this fact so important that it sells policies with a 72-hour cooling-off period. AFTA's policy states: ``if you are not satisfied for any reason and choose not to accept the policy a full refund of premium will be made."
It's amazing what you find in the fine print. Many Bali holidaymakers would be horrified to learn they may not have had any insurance cover when they innocently hired a motorbike for a thrill-seeking afternoon. (The fine print may say that, irrespective of whether a licence is required in the country in which the vehicle is driven, you are not covered unless you hold a current Australian motorcycle licence.) Nor are you automatically covered for snow-skiing, scuba- diving without an international licence or without supervision by a qualified diving instructor, trekking, mountaineering or rock-climbing necessitating the use of climbing equipment, abseiling or bungee jumping. Don't take the plunge without checking your policy first: in most instances you have to pay an extra premium when purchasing your policy.
There are also special conditions for pregnant travellers.
Consider this if you are hoping to get pregnant while lapping up the luxury on a romantic tropical island.
And you must declare any pre-existing medical condition before departure. Most of the bigger insurance companies will offer you cover, but at a premium and only after you have provided information such as the condition's name, medication details and the date of the last visit to your doctor. Obviously, it is not a great idea to leave this to the last minute.
Many travellers will be surprised to hear their personal liability clause does not always include third-party car accident liability. The same applies with waterborne craft.
Besides knowing these conditions, which are listed in the fine print, it is worth bearing in mind, that, in the event of a disagreement, insurance companies focus on what is ``reasonable".
It is beneficial to insure with a company that has a 24- hour international hot-line. This enables you to ring, reverse charges, and establish on the spot what will be covered.
To guarantee a 100 per cent successful claim it must be watertight. Don't wait until you come home to find out what your insurance company considers to be reasonable. Record the details of your conversation. Keep a copy of your 24-hour emergency hot-line number in a separate place.
Hot-lines can also arrange medical assistance, even refer you to the best available hospital and organise emergency evacuation. They are also useful for tracing lost luggage as well as cancelling and replacing lost credit cards and traveller's cheques.
Credit cards are themselves a form of insurance. For example, you may not be admitted to an American hospital unless you have a credit card to cover your costs. Some credit cards, such as Visa Gold Card, provide clients with international travel insurance as part of the service. But don't forget to read the fine print.
Every insurance company demands proof of ownership. It is a real battle to get one to cough up for a stolen camera, if you can't document your purchase. Therefore keep all receipts, no matter where you shop. And keep your receipts separate: if they are stolen at the same time, you won't have a leg to stand on.
Lost luggage accounts for most insurance claims. Don't count on airline compensation: it is usually minimal and often based on the weight rather than the value of the contents.
Most companies will not compensate for the loss of jewellery, cameras, videos and computer equipment carried in the cargo bay. Nor will they cover unattended bags stolen in public places.
Compensation for possessions left in an unattended vehicle is often limited. In some instances, you may receive only a maximum of $200 an item or $2000 in total for your stolen luggage, even if the vehicle was locked.
If all of your luggage is delayed, misdirected or temporarily misplaced for 12 hours or more, your policy may offer to reimburse you for the purchase of essential items of clothing and personal requisites.
To claim on lost luggage, documentation is the key. You need receipts to prove ownership and a police report written within 24 hours of the theft. In case of delayed luggage, you have to get written confirmation from the responsible airline.
Most policies cover cancellation costs and are valid from the date you purchase the policy. If an immediate family member suddenly becomes seriously ill or even dies, your policy should cover your premature return. But if the relative had a pre- existing condition you will probably not be covered.
When making a claim, check your time limit. Many companies will accept only claims lodged within 30 days of your return.
If you have an intractable problem with your claim and cannot resolve it satisfactorily with your insurer, go to the new, free arbitration body, the Claims Review Panel. Contact the Insurance Council of Australia which has representatives in each state capital.
Finally, as there is a lot to remember, take the policy with you.
If this has made you nervous, try New Zealand. Fewer people make claims when they travel to New Zealand than to anywhere else in the world.
© 1995 THE SUNDAY AGE
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