We’ve all been there. One minute you’re opening a Product Disclosure Statement (PDS) for a travel insurance policy that looks as though it meets your needs and then, upon noticing the 34 pages of jargon you have to trawl through, you close it and buy the policy anyway, Surely you’ll be covered for your trip, right?

Here to wag the proverbial finger at you is Andrew Hall, CEO of the Insurance Council of Australia, who insists ‘Australians are putting themselves at risk’. Hall’s statement was made in light of the recent survey conducted by Quantum Market Research on behalf of the Insurance Council of Australia and the Department of Foreign Affairs and Trade’s Smartraveller.gov.au. The survey found that over 80 per cent of Australian travellers did not properly read their policy product disclosure statement and may not have been sufficiently covered. Worse still, the survey also found that one in six Australians (16 per cent of respondents) travelled without any travel insurance on their last overseas trip. Younger travellers under 30 were most likely to travel without insurance (60 per cent), with many citing the eye-watering cost of travel insurance as a key motivator to shout ‘pass, thanks’.

“The findings are concerning,” said Hall, who added travel insurance is as important as your passport. “Things we take for granted in Australia, such as the public health system, are not free or even available to you once you leave the country. Personal responsibility plays a big part in your travel plans and it’s important to read the details of your policy, so you know you are covered.” 

But here’s the thing: even when you think you’ve done the right thing, there are many occasions where an insurance provider may not pay out. The most common issues?

1. Occasions where you’ve been drinking

So you’ve had a few too many and had a nasty accident or woken up to find your handbag and laptop missing? Most policy providers will refuse any claims arising directly or indirectly from something that has occurred while you were under the influence of alcohol (and yes, it will be outlined in the PDS). The specific blood alcohol content varies between policy providers, with Go Insurance specifying 0.05 per cent and Cover-More making it 0.19 per cent official. 

2. Pre-existing conditions 

Got a health issue? Provided you declare your condition for evaluation by your insurance provider, or it appears on the insurer’s list of pre-existing conditions that they do cover under a general policy (asthma, for example, or high cholesterol), you shouldn’t have a problem. For others you may be required to purchase an additional premium to cover your condition, but be sure to comb through the PDS for all the restrictions in place. A failure to disclose a pre-existing condition is one of the most common reasons for a denied claim. 

3. Reckless activity or sport

Participating in an adrenaline sport during your holidays isn’t a problem, but only if you purchase a policy that covers the exact sport or activity. While recreational sports such as kayaking and white water rafting are usually covered by most insurance providers, limitations to high-risk adventures such as abseiling and heli-skiing apply. You will either need to buy an additional adventure package, or book your insurance through an insurer that specialises in high-risk adventures.

4. Flight connection times

Flight delays and cancellations are a common occurrence and unfortunately it’s something you’ll need to factor in when locking in a policy. Generally speaking, airlines must offer compensation any time they’re responsible for the disruption but things go pear-shaped if you’re travelling codeshare and airlines keep passing the buck over who is responsible. Interestingly, most policies will not cover delays that are caused by the airline and providers who do vary when it comes to the conditions in which the connecting flight was missed (for example, refusing to pay out if the scheduled transit time is less than 90 minutes).

5. Cruising

Planning to hit the high seas? General policies rarely cover cruising so you’ll have to take care to buy a policy that either includes cruising, or allows you to tack on a cruising add-on package. If you become unwell or get injured on a ship without the right level of cover, it’s going to be a very expensive order to get you a hospital with no financial recourse in sight. 

6. Unattended luggage

Asking someone you’ve only just met to ‘mind your stuff’ while you run to the bathroom or a bag casually thrown in the backseat of your hire car; both situations where an insurance provider will use their ‘get out jail free’ card to avoid paying your claim. Although the meaning of ‘unattended’ varies between insurance providers (as does item limits for high-value items such as laptops and cameras), you will need to show that your belongings weren’t unattended, and that reasonable force was used (for example, a jimmied lock to get into the car). You will need to file a police report outlining the details of the incident before approaching your insurer. 

Others mistakes that may void your claim

Getting a tattoo (which then becomes infected), travelling overseas for cosmetic surgery, getting on a bike (or moped) without a helmet, and breaking the law in another country are a few more examples of when your claims will be denied. To avoid such a situation, the consumer advocacy group Choice has put together an explainer on how best to read a product disclosure statement properly, insisting travellers focus on the following areas: 

• The table of benefits, which provides an overall summary of your cover
• The policy cover section, which tends to be split into ‘what we will pay for’ and ‘what we won’t pay for’.
• General exclusions 
• Pre-existing conditions 
• The word definition table (the perfect place to double-check their meaning of the word ‘moped’ for example).
• The claims section, which lists the paperwork you may need to collect on your travels
• COVID-19 cover section (because it’s still a thing)
• The 24-hour emergency assistance contact number so you can write it down should you need it.

For further information, you can check their travel insurance guide at smartraveller.gov.au