While overseas travel is an exciting experience for all Australians, the Australian consular office deals with human tragedies every day – approximately 25,000 cases every year! This has included 1,200 hospitalisations, 900 deaths and 50 evacuations of Australians to other locations for medical reasons.
For victims with no travel insurance, such tragedies are a long-term financial burden. Whether it’s hospitalisation, a medical evacuation or return of a deceased body it can be very expensive. A daily hospital visit in Asia can cost up to $800, a medical evacuation depending on the country can range from $60,000 to $95,000 in some cases.
There is no doubt that travel insurance should become a compulsory part of holiday planning for all Australians. These are just some questions we’ve handled at eChoice which may be of assistance to you.
Question: If the government issues a travel warning to my destination, will travel insurance cover me?
Answer: The Department of Foreign Affairs and Trade (DFAT) issues travel warnings and it is worthwhile registering on their website for these email alerts. Insurance will depend on the policy that you and the insurer have agreed upon. Since there are different advisory levels, this could affect whether or not you get a complete refund. Every policy is different, so it is worthwhile reading the terms and conditions of your policy to find out the extent of the cover.
Question: Will travel insurance cover terrorism?
Answer: Generally, insurance policies will not refund the expenses for trip cancellations due to terrorism in your destination. If you returned to Australia earlier than scheduled after a terrorist act, there is a good possibility that your insurance policy will not cover these expenses. Again, discuss the terms and conditions with whoever your insurer is and investigate the different possibilities.
Question: Will I have enough coverage using a credit card?
Answer: The Insurance Ombudsman Service has warned consumers about free travel insurance that comes with credit cards. There have been cases where the insurer will reject claims where the consumer has paid for the trip and expenses with cash.
To ensure you’re covered, you must check with your credit card company that it provides enough travel insurance. Some credit cards provide insurance if you were injured at the point of departure and arrival of your trip but actually when you’re at the destination. There are some credit card travel insurances that do not cover domestic trips sets a time limit to your trip.
If you do have credit card travel insurance, make sure that you know what you are covered for, as in some cases you must spend a minimum amount of money for the card to activate the insurance policy.
You must also check whether your family members that are travelling with you are also included in the insurance. And ensure that you receive written confirmation prior to departing on your holiday.
Question: Are all companies that provide emergency assistance the same?
Answer: No. Although insurance policies indicate a free or reverse-charge phone number, the quality of the medical services that you can contact may vary. There are some emergency assistance companies that have a presence in many countries while there are others who have offices in Australia only and outsource emergency services to other emergency assistance companies overseas. It would be wise to ask your insurer about the emergency services that are provided at the place that you will be going.
Question: What would happen if I do not buy the preferred insurance of the tour operator?
Answer: No one can be forced to buy the insurance that is offered by the tour operator even if they claim it’s the best option. Before agreeing, check out other insurance deals and compare their coverage, exclusions and price with other policies.
If you would like to find out more about trave insurance, feel free to contact eChoice Insurance – we’re here to help!
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