Travel Insurance - why you should take out travel insurance before going overseas
Each year the Department of Foreign Affiars and Trade [DFAT] handles over 25,000 cases involving Australians in difficutly overseas. This includes 1,200 hospitalisations, 900 deaths and 50 evacuations of Australians to another location for medical purposes.
In cases where victims are not covered by travel insurance, such personal tragedies are further compounded by a long-term financial burden. Hospitalisation or medical attention, medical evacuations from overseas, or even the return of a deceased's remains to Australia can be very expensive. Daily hospitialisation costs in the Southeast Asia region regularly exceed $800; return of remains from Europe in excess of $10,000. The cost of medical evacuations from the United States regularly range from $75,000 - $95,000 and sometimes up to $300,000. DFAT has handled medical evacuations from nearby Bali in which costs have exceeded $60,000.
Unfortunately, not all of these cases involved travellers covered by travel insurance. Travellers who are not covered by insurance are personally liable for covering incurred medical and associated costs. As a result, DFAT have know instances where families have been forced to sell off assets, including their superannuation or family homes, to bring loved ones back to Australia for treatment.
DFAT advise, if you can't afford travel insurance, you can't afford to travel. They have produced a postcard which has practical information for you to consider when deciding on travel insurance. One of DFAT's key messages to Australians is that with accidents or illness often unavoidable , proper travel insurance is very important in this context. Of course, the all-too-common occurrence of theft and loss of personal belongings is also something all Australian travellers should insure against.
The above information provided by DFAT is a very important warning of the need for travel insurance when travelling overseas. Travel insurance should also be considered when travelling domestically in Australia as often medcial services etc may not be covered under Medicare or private health insurance and can be a costly end to a business or personal trip. DFAT have made note that when you choose a travel insurance policy, you need to be aware that there is no automatic refund when DFAT raise a travel advcie level to 'do not travel' or where they provide advice on incidents overseas (for example airport closures). Travel insurance is a purely contractual matter and will be subject to the terms and conditions agreed by the parties at the time of purchase. You should ensure that you fully understand the policy.
The Taggart Group can help you with business or personal travel insurance needs. If you are travelling domestically or overseas, you should speak to one of our brokers prior to travelling to seek advice on travel insurance. You can contact our brokers by phone on 02 9894 9155, or by email to general@taggartgroup.com.au.