Doctor's Orders: Take Out Cover

Sun Herald

Sunday October 29, 2006

Lee Atkinson

Travel insurance - you really shouldn't leave home without it. But make sure you read the fine print, Lee Atkinson warns.

YOU'RE heading off for five days at the beach, planning to pack swimmers, sarong, sun block and not much else. You don't need insurance; so what if your suitcase goes missing, the airline will reimburse you, right? And besides, your credit card offers free travel insurance anyway. Think again!

Most people think of travel insurance in terms of cover for lost or stolen belongings but, in fact, lost and delayed luggage portions of travel insurance are among the least used. The real value of travel insurance lies in its level of emergency and medical assistance if you get into trouble overseas.

Hospitalisation, medical evacuations or even the return of your remains to Australia can be very expensive. Daily hospitalisation costs in South-East Asia regularly exceed $800; return of remains from Europe more than $10,000. The cost of medical evacuations from the United States regularly ranges from $75,000 to $95,000 and sometimes up to $300,000. The Department of Foreign Affairs and Trade (DFAT) has handled medical evacuations from nearby Bali in which costs have exceeded $60,000.

"When people ask what's the most important thing about travel insurance, I have just four words to say: medical, medical, medical, medical," says Graham Kingaby, insurance specialist and director of World Nomads.

"But it is also really important that you read your policy," Kingaby advises. "Make sure you know exactly what you're covered for, and what you're not," he warns.

Most good policies include full medical evacuation, but don't book a first-class seat so you can stretch out your broken leg before checking that you won't end up paying for it out of your own pocket. Same goes for dental care: a broken tooth can wreck your holiday, but it's not always covered.

When choosing cover for overseas travel, make sure the policy will be recognised around the world. In some countries, if they don't recognise the insurance underwriter they may not admit you to a hospital. It's also important your insurer has a 24-hour assistance telephone line to help you find your way to the local pharmacy, get a replacement set of spectacles or find an English-speaking doctor or reputable hospital.

"Most travel policies don't cover for war and warlike activities," Kingaby advises and DFAT warns that some insurance policies will not always cover claims made in those countries that have an advisory against travelling. But just because you're concerned about the safety of where you're going, that may not be enough to get a refund. If you cancel your trip in the absence of an official warning against travel, your insurance may not cover the cancellation.

Many policies include cover if you have to cancel or cut short your trip. But, again, check the fine print. Some policies will cover only medical reasons (such as being admitted to hospital), and some will not cover pre-existing medical conditions such as an old back injury flaring up. An "unforeseen emergency" might be an accident on the way to the airport, a hijacking, a natural disaster, a fire or flood at your house, or a call to jury duty. However, they probably won't cover you if you change your plans, if your job forces you to stay in town, or if you can't go because of personal finances. Travel insurance in general also excludes self-inflicted injuries and problems arising from the use of illegal drugs.

"It's really important to declare any pre-existing conditions both for you and any relatives at home," Kingaby warns. In most cases a travel insurance policy won't provide cover if you fly home early because a relative was being treated for a pre-existing condition and dies as a result of that condition.

Even if you manage to avoid all these disasters, there's a long list of popular holiday activities that aren't covered by most insurance polices.

"When you're lying on the beach in Tahiti it might look like fun to go parasailing," Kingaby says, "but your travel insurance probably doesn't cover it." Go-karting, sandboarding, polo, farm work, BMX cycling, hot-air ballooning, wake boarding, quad biking, skiing and caving are just a few others that are generally not covered. And just because you may not need a motorcycle licence to hire a motorbike or scooter in some countries, if you are injured riding a bike (or injure someone else) and you don't have a licence, forget about cover.

As for that free travel insurance that comes with your credit card, the Insurance Ombudsman Service warns against relying on it. In a recent case a claim was refused because the deposit for the holiday was paid in cash.

MORE INFORMATION

* For official travel advisories, see the DFAT website www.smartraveller.gov.au.

* Shop around for the insurance cover that suits you best. For a handy comparison of insurance policies, see www.travelinsurancecompared.com.au

* World Nomads offers online travel insurance specifically for adventurous and independent travellers. You can buy your policy even after you've left home, extend your policy indefinitely and make claims online while you're still away. It also covers adventure sports such as bungy jumping that other insurers baulk at. See www.worldnomads.com.

© 2006 Sun Herald

Back to News Index | Back to Home