In this age of terrorism threats and war-torn
nations, travellers should always heed governmental
advice as to whether or not travel to certain
regions is recommended. If deciding to travel
to a country despite government warnings,
it may be difficult to obtain travel insurance
at all. If it is obtained, it will probably
be very expensive and its cover fairly limited.
It is crucial that you understand exactly
what is and isn't excluded from the policy
before you sign on the dotted line. Indeed,
being aware of the exclusions is, arguably,
even more important than knowing what is covered.
Get clear in your mind the insurer's definition
of claimable and non-claimable events. If
at all possible, endeavour to get those definitions
in writing.
Get the language right. Ask as many questions
as it takes to know exactly where you stand.
Remember, the only dumb questions are ones
that haven't been asked yet and given a voice.
If going through a broker or agent, double
check with the insurer if uncertain of their
answers. It's wise to remember too, that no
insurance policy is going to cover you for
every single thing that could possibly happen
on your holiday. The prudent traveller will
ensure, however, that what he or she needs
to be covered for will be.
For example, does the policy allow you to
participate in "adventure activities"?
If you're going bungee jumping in New Zealand
or white-water rafting in Canada, make sure
your insurer knows about it and will cover
you for accidents occurring during such activities.
Is your luggage excluded if left unattended?
What does "left unattended" mean?
What if you leave it in a taxi? What if you
walk two metres from it to buy a chocolate
bar from a vending machine?
It's a good idea to also familiarise yourself
with claims procedures before departing so
as to avoid the "paper frenzy" in
the event of an accident. Some policies have
a time limit for reporting claims. In some
cases, the incident must be reported to local
authorities within twenty-four hours in order
to claim.
Be aware too that some countries may not
recognise all insurance companies. This could
pose a problem if hospitalisation is required.
If the insurer isn't recognised in that country
you may not get hospital treatment. Make sure
that the insurer has a global reputation.
It's very expensive to be injured overseas.
For instance, medical evacuation from the
United States to Australia can cost anything
from $80,000.00 upwards. If a stay in hospital
is required, the bill could run into hundreds
of thousands of dollars. And you thought shopping
in Beverly Hills would be fun….
It's also dangerous to be injured overseas,
particularly in countries where medical facilities
may not be as well equipped as at home. Again,
the evacuation costs can run into many thousands
of dollars - and no insurance means a lifetime
of debt.
Travelling without the right travel insurance
is like walking a tightrope without a net.
Sure, it can be done, but one tiny slip and
it's too late for "If only"s. And
chances are, it will be your loved ones at
home who will mortgage their houses, cash
in their superannuation and face considerable
financial hardship in order to bring you back
to the fold.
All in all, travel insurance is one thing
you should definitely not leave home without!
