In the event of serious injury or
illness, insurance payouts can run into hundreds of thousands of US
dollars. An uninsured Australian injured in Alabama will end up at the
mercy of the expensive American healthcare system. If you consider a
Canadian bitten by a rabid dog in Rwanda or British backpacker needing
an airlift out of the Himalaya, the benefits of travel insurance are
clear.
High prices don’t always mean the best
coverage. List what aspects of a policy are important to you. It’s
pointless paying a premium to reduce car rental excess if you can’t
drive, or covering your luggage when all you have is a backpack full of
dirty socks and a dodgy mp3 player. Removing options or lessening limits
often reduces the premium you pay.
What needs to be covered by my travel insurance?
We believe emergency medical coverage is
most important. Insurance policies vary, so read the fine print
carefully to see exactly what is covered. Certain pre-existing medical
conditions that increase the likelihood of a claim may be excluded. If
you have a heart condition or terminal illness, you may need to provide
additional information before you can be offered a policy. Sporty
people, off-piste skiers and bungee jumpers should check if their
activities are covered. And injuries occurring during professional
sports are generally not covered.
Insurance premiums are calculated based
on your origin, age, destination and duration of travel, with the world
divided into different zones. When travelling to countries like the USA,
where health insurance is a multi-billion dollar industry, or to less
developed countries with a lower standard of healthcare to which you’re
accustomed, look for a policy with a high level of cover. Some providers
will offer ‘unlimited’ medical coverage for a higher premium, while a
cheaper policy might cover up to US$10 million. The highest claims paid
globally run into millions of dollars, but are very unlikely to run into
the tens of millions.
Other things to consider
Will a provider airlift you home? Do
they have doctors on the staff of their emergency hotline? Will they pay
to fly your family to you if you’re unable to be moved? Read the fine
print and choose what suits your needs.
Reciprocal healthcare agreements
Some countries have reciprocal
healthcare agreements with others, meaning that if you’re from a
participating country and travelling in another, you’ll be entitled to
free or subsidised public healthcare to the same standard enjoyed by
residents. Participating countries include (but are not limited to)
Australia, New Zealand, the UK and Ireland; Sweden, Norway and Finland;
Italy and The Netherlands. Refer to your government’s traveller
information homepage for details, noting that any reciprocal coverage
will not be at the same level as facilitated by travel insurance. And if
you’re an EU citizen, don’t forget to carry a European Health Insurance
Card to entitle you to cut-price or free state-provided healthcare in
EEA countries and Switzerland.
Are your belongings covered?
Next, confirm how your luggage is
covered, particularly for theft or damage. Are there individual item
limits? What are they? Are electronic devices included? Is theft from
inside a car excluded? What if your iPod falls in the Trevi Fountain? If
anything is unclear, phone your provider – insurers are legally obliged
to unravel the fine print in simple terms.
The other essential heavyweight inclusions to investigate are:
- Cancellation. You can often nominate the amount of coverage in the event that something prevents you from travelling – this should equal the full cost of your trip and any extras, but the higher the amount, the more expensive the policy becomes.
- Travel delay. Count on at least US$250 per day, and look for exclusions relating to strikes, natural disasters, war and terrorism. But don’t expect to be showered with cash for a couple of hours spent sweating on a grounded aircraft: you are unlikely to be covered for delays less than 24 hours if it’s the airline’s fault.
- Airline and end supplier insolvency. If the people who took your money go bust, ensured you’re covered by US$10,000 and then some. This is a relatively new addition to some policies, so you might have to shop around for this one.
- Personal liability. In case someone trips on your carelessly placed luggage, injures themselves and sues you for damages, you’ll need to be covered. Look for policies that offer somewhere up to US$2 million in cover. Remember you are up for compensation of medical bills and ongoing treatment, not to mention any medical bills.
- Car rental. Travel insurance usually won’t cover
the full cost if you’re in an accident in a rental car, even if it’s not
your fault. It can help with the excess (the amount you’re liable to
pay), but you will need to take out the compulsory insurances provided
by the car rental company too. Look out for the excess and if you can
reduce it (US$5,000), damage (US$50,000-plus) and liability (US$1
million) in the rental insurance and compare this with the limits and
what’s covered under your travel insurance policy so you won’t be out of
pocket. Something to keep in mind – the travel insurance cover for
personal liability usually excludes motor vehicle usage, so make sure
you’ve got the right cover with your car rental company for third party
liability.
If accidents happen
When travelling, keep the emergency
number close. If you need medical help, seek treatment urgently. If you
can’t call for help, someone will find the number on your person so make
sure you keep a copy of your Certificate of Insurance on you, just in
case. If your situation is not medical in nature, it’s always best to
phone the provider anyway, and they’ll advise their protocol.
Making a claim back home is generally
straightforward – you’ll need to submit some forms, so keep receipts,
get police reports, evidence – everything you can to support your claim.
If the claim is investigated and accepted, you should normally be
reimbursed within a few weeks. If not, an appeals process is always
available.
With some careful investigation, travel
insurance doesn’t need to cost the earth. Shop around, get insured, keep
your details close at hand, and hopefully you’ll never need them. But
if you twist your ankle in a Barcelona ballroom or get bitten by a
Bornean snake, you’ll be very glad to be covered.
