May 2007 - Travel InsuranceThere’s an old adage “If you can’t afford travel insurance you can’t afford to travel”. It is still true today and yet many travellers refuse to be covered whilst overseas or within Australia because the accident/loss of luggage/calamity will never happen to them. But sadly accidents do happen and luggage is stolen. Every year the Australian Department of Foreign Affairs and Trade handles over 20,000 cases of Australians in difficulty overseas. This includes over 700 hospitalisations, over 600 deaths and over 100 medical evacuations back to Australia. Of these known cases, there are of course many more that haven’t asked for assistance from DFAT.
If you don’t have travel insurance, hospitalisation, medical evacuation or the return of deceased remains can cause extreme financial hardship to you or y our family. Medivacs from the USA cost up to $300,000. Returning deceased remains from Europe is in excess of $10,000 and even from a neighbouring country like Bali a medivac can cost over $60,000 (source: www.smartraveller.gov.au ). Hospital costs in Asia cost around $800 a day. Is it worth the risk of incurring tens of thousands of dollars in costs simply to save a hundred or so dollars on insurance?
Travel insurance, if taken out at the time of making a booking, will provide cover against cancellation fees before you depart (conditions apply to this – if the cancellation is due to unforeseen or unforeseeable circumstances all well and good but if you just don’t want to travel that reason is not covered) as well as emergency medical care, lost luggage and other components of the policy whilst you are away. It is no more expensive to buy travel insurance one year before your departure date than one day before you depart. With some insurance companies it is possible to buy just the minimum 5 day policy when you first make a booking to cover cancellation costs and then “top up” the number of days you’ll be away when you are about to travel.
Late last year a family of six booked airfares to a remote part of Africa for missionary work. They had paid for their airfares and insurance and were ready to depart when a week prior to their departure date one of the children fell off his bike and caused severe internal damage necessitating hospitalisation. In addition, the father crushed one of his fingers whilst working on a carpentry project and therefore was unable to work at the mission as a carpenter which is what he had planned. These two incidents were sufficiently unforeseen to allow the family to claim back all the cancellation fees that were applicable to his booking so that they were not out of pocket financially. Had they not had insurance cover, they would have lost over $2,000. Their insurance cover cost $500 and saved them $1,500.
Travel insurance is available on many credit cards but often …..
- Credit card policies only cover basic pre-existing medical conditions if they are covered at all
- The insurance is only available if you purchase the flight tickets using the credit card
- The excess payable on any claim is in the region of $200
- The insurance is only valid for up to three months and cannot be extended if you stay away longer
It’s also important to ensure that the definition of de facto partner covers same sex partners – if you need to cancel the holiday, or change plans because your partner is ill, is your relationship considered a de facto on by the insurers in the policy?
The Insurance Ombudsman logged a record 228% rise in the number of rejected travel insurance claims last year, caused mostly because travellers had not read the policy brochure before buying the insurance. In response to this problem, the IOS has produced a guide for travellers which is available online at www.insuranceombudsman.com.au at no cost. It should be read by all travellers, particularly those people who use their credit card insurance cover or those who buy travel insurance online.
So before you buy any travel insurance, obtain a copy of the policy details, check that the policy suits your needs, understand what you need to do to activate the policy and check to see if pre-existing medical conditions are covered. In addition, make sure you know what to do if an emergency arises overseas, who to contact and what receipts etc are required to make a claim. Be aware that with credit card insurance, it is the bank that is the insured person not you because the insurance arrangement is between the bank and the insurance company, it is not between you and the insurance company. Look before you leave!
For details of insurance cover sold by Mondo Travel, please ring Mary at Mondo Travel 08 92421478 or email mary@mondotravel.com.au
|
