There are many things to consider when travelling overseas including passport, tickets, exchange rates, accommodation and what to pack. While overseas travel can be an exciting prospect, there can be situations where things may go wrong and travellers find themselves needing urgent medical assistance, help with replacing lost luggage and/or assistance with making an urgent trip home. This is where Travel Insurance can help along with providing peace of mind for travellers who may find themselves in any of these situations. Travellers should thoroughly read the policy before they purchase travel insurance to ensure it meets all their needs and provides the appropriate level of cover. To help you decide on what type of travel insurance you need, the Insurance Council of Australia advises that travellers consider the following prior to taking out a travel insurance policy:
General information
Travel policies cover a wide range of possible claims which include overseas medical expenses, repatriation expenses, lost luggage, trip cancellation and liability. This makes them different to many other policies in that for a relatively small premium of a few hundred dollars, there could be a potential payout of hundreds of thousands of dollars in medical fees/evacuation. Accordingly, the policy wording needs to be precise and certain risks may be excluded from the cover in order to keep the premium affordable.
When choosing a 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.
If you are travelling overseas, make sure that you are aware of who your emergency assistance provider is and how you can contact them. In the event of a travel emergency, you will need to contact them to faciliate the provision of emergency medical treatment and/or other required services. Details of the provider and contact numbers are shown on the assistance card provided with or within your policy document.
Exclusions
Be aware of exclusions. Most travel insurance policies won't cover luggage that is left unattended in public places and the insolvency of the service provider, such as an airline, may be excluded. Travel policies generally don't cover for war and warlike activities and may not cover for terrorism.
Pre-existing Conditions
Declare any pre-existing conditions both for you and any relatives at home. 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. In many policies, a pre-existing medical condition is regarded as any condition for which you have been to see a doctor or taken medication in the previous month before you buy travel insurance. Some policies may not provide cover if the relative is over a certain age. Travelling companions (eg not a family member) are normally covered for breaking their trip if you get sick or vice versa but again you must declare if your companion has a pre-existing illness at the time of taking out the policy. Disinclination to travel is not covered.
Duty Free
Duty free or other goods bought overseas are covered subject to policy limits, but you must have receipts as proof of purchase.
Medical
If you become ill or are injured, contact your travel assistance provider and collect all the medical and other related documentation required for your claim. Make sure you get a signed statement from the Registrar of the hospital where you were treated.
For the USA, Japan and Europe, make sure you have unlimited cover for hospital and medical costs - $500,000 is not uncommon for medical expenses in the United States. Australia does have reciprocal rights with some countries for Medicare-type cover (eg UK). A brochure which lists these countries is usually available at airports or through travel agents. PLEASE NOTE: Beds may not be available in a public hospital and you may still end up being treated and charged as a private patient.
Most quality policies include full medical evacuation. However, don't assume anything until you have checked with your insurer or agent. Don't book a first class seat so you can stretch out your broken leg before checking with your assistance provider.
Safety
With regard to cancellations due to safety concerns or decisions to boycott countries (eg the Middle East in light of recent events), travel insurers rely on warnings and bulletins issued by the Department of Foreign Affairs and Trade. If you are concerned, or just decide to cancel your trip in the absence of an official warning against travel, your insurance may not cover the cancellation.
Travel Insurance related to age:
Travel insurance is moving more toward 'preferred risk-rating' rather than 'community-rated' ie due to the ageing population it is becoming increasingly difficult for the young, fit and healthy to support the growing higher risk area associated with older people. In some cases, this may impact on someone who is considered a high risk when attempting to obtain travel insurance.
The assessment of travel cover is based on four main factors:
- Age
- Destination (eg it is much easier to obtain insurance when travelling to New Zealand than countries such as the USA). A rough guide is that whatever you pay in Australia for treatment in a private hospital situation could be multiplied 10-15 times for basic hospital treatment in the United States.
- Length of stay overseas
- Any pre-existing conditions
Age may impact on the availability of travel insurance from about 65 years upward but it also depends on:
- the premium that the traveller is willing to pay (there may be access to insurance for some areas at a higher premium),
- the country they intend to travel to (USA and Canada is much more difficult to obtain cover because of high medical costs),
- the time they intend to spend away, and
- any pre-existing ailments.
Travel, like other insurance is highly competitive, so if you are not happy with the terms and conditions offered by a policy, shop around.
source:Insurance Council of Australia
