05-374 Planning an adventure holiday this Christmas? Don’t be left in the white water if your raft takes a tumble
Tuesday 29 November 2005
The Australian Securities and Investments Commission (ASIC) has encouraged Australians planning holidays over the festive season to read the fine print when shopping around for travel insurance.
‘Whether you’re planning to bungee jump in New Zealand, trek in Nepal, take on the legendary surf at Ulu Watu in Bali, or simply lie on the beach on the Sunshine Coast, make sure you’re familiar with the terms and conditions of your insurance policy in case the unexpected happens’, Mr Greg Tanzer, Executive Director of Consumer Protection said.
Mr Tanzer said approximately 15 per cent of all complaints to the Insurance Ombudsman in 2003/2004 were about travel insurance and warned that the most common reasons for denial of claim concerned lost and unattended luggage and pre-existing medical conditions.
‘While a travel insurance policy will usually cover events such as personal injury, loss or theft of your possessions and costs you may incur if your travel plans are disrupted, it will also contain a number of exclusions,’ Mr Tanzer said. ‘It’s important people read the fine detail about policies, and if in doubt, ask their insurer about how these policy exclusions work in practice.’
‘Comparing different travel insurance policies might save you a lot of money as well as some nasty surprises’, he said. ‘Try to allow yourself time to find a policy that suits you and the type of holiday you’re planning. Don’t just chase the cheapest policy without checking exactly what it covers you for.’
According to Mr Tanzer, some policies particularly target younger travellers and will cover a broader range of adventure-type activities. While many include 24-hour medical assistance, a help line and private hospital cover, travellers should be careful of any ‘special circumstances’ that might apply.
‘When you’re in a hurry and putting most of your energy into organising your travel plans, you risk purchasing a product that might not give you the best value for money,’ he said.
‘Worse, you may end up with nowhere near the amount of cover you may need for the kind of holiday you intend to take, especially if your plans include adventure activities like rock climbing or white-water rafting.’
Policies routinely exclude claims for loss or damage suffered because:
- Your airline stops trading and you can no longer travel;
- You travel to certain countries against the advice of the Australian Government. Check the Australian Department of Foreign Affairs & Trade’s website, www.smartraveller.gov.au, for the latest travel warnings;
- You cancel plans because of fear of terrorism;
- You didn’t advise the insurer of a pre-existing medical conditions or you travel against medical advice;
- You join in ‘adventure sports’ or other hazardous activities like bungee jumping, white water rafting, ballooning, snow skiing and scuba diving;
- You leave your luggage unattended in a public place and it is lost or stolen;
- Your cash is lost or stolen. Many insurers don’t cover cash;
- Valuable items such as cameras, sound equipment or mobiles are stolen if left unattended in a hire car;
- You’re over 80 years old. If you’re over 70, you usually need a medical assessment and you’ll probably have to pay a higher premium; or
- You cancel plans because of a change in your financial circumstances or business obligations.
ASIC’s consumer website, FIDO at www.fido.gov.au, provides more information about getting insurance as well a wide variety of savings and investment tips. ASIC also produces a number of free publications about managing your money, getting advice and understanding financial products. These can be downloaded from FIDO and are also available by calling Infoline on 1300 300 630.
FIDO Website: Printed 07/29/2010
