Travel insurance

Nothing ruins a holiday or business trip faster than lost luggage or an unexpected accident. Having travel insurance won’t prevent things from going wrong, but it can make things much easier if you get into trouble.

What does travel insurance cover?
Choosing a travel insurance policy
Tell it like it is
Travel insurance exclusions
Making a claim

What does travel insurance cover?

Travel insurance policies typically cover the following:

Medical expenses from personal injury or illness
Loss of goods
Theft
Disruptions to your travel plans (e.g. cancelled flights)

Choosing a travel insurance policy

Travel insurance requires you to pay an upfront premium to cover you for a set period of time. You can also purchase travel insurance for the whole year if you travel a lot.

On top of the premium, you may have to pay an excess when you make a claim. Make sure you know what the excess is before deciding which travel insurance provider to go with.

When choosing a travel insurance policy find out:

The cost of the premium and the excess
What is included and what is excluded
The dollar limits for claims on individual items and as a whole?
How to make a claim
How to contact your insurer if you are overseas
What paperwork you need to take with you on your holiday

Tell it like it is

You must be completely honest:

When you buy or renew a policy
If you make a claim
If your circumstances change

If you don’t ‘tell it like it is’, you may not be covered when you make a claim. Be truthful about your travel plans and medical history when applying for travel insurance.

Travel insurance exclusions

Travel insurance usually does not cover:

Injury from extreme sports (e.g. bungee jumping)
Illness or injury from pre-existing medical conditions
Loss or injury from acts of terrorism, war and some natural disasters
Loss or theft if you left your luggage unattended, so ask your insurer what ‘unattended’ means for your policy

Making a claim

Making a claim on your travel insurance is much like any other insurance claim. For example, you may need a police report for a claim on a stolen camera. It always pays to register your claim or at the very least inform your insurer that a claim is coming as soon as possible. Some insurers require you to inform them of any claims within 24 hours.

Always carry your travel insurance contact details for the country you are travelling to.

Case study: Sarah’s dodgy knee

Sarah went skiing in New Zealand and decided to get travel insurance in case she got injured. Lucky she did, because she crashed into another skier and broke her leg!

Sarah was very thankful she had insurance. But when her insurer discovered she’d had a knee reconstruction two years earlier, they denied her claim because she hadn’t informed them of her pre-existing condition. Always tell your insurer the whole truth.

Case study: Karthik's camera

Karthik is a keen photographer and recently purchased an expensive professional camera to take on a backpacking trip to Europe. He decided to get travel insurance that itemised the camera so he was covered if something happened to it.

Seeking a review of your claim

If you disagree with a decision about your insurance claim, your first step should always be to raise this directly with the insurer by using their dispute resolution system.

How to complain
If an insurer rejects your claim, it's not necessarily the end of the story. You can go to court or you can take your case to a complaints resolution scheme.

Guide to making a complaint

Independent complaints schemes

Travelling the world can be a great experience. Spending a little extra time to select the right travel insurance can make it easier and quicker to sort out problems if something goes wrong. Then you can get back to enjoying your trip!

More information

General insurance

Insurance and terrorism

Product disclosure statements

FIDO Website: Printed 09/07/2010