Love of the great outdoors and adventure sports puts insurance cover at risk for millions of Australians.
A LOVE of the great outdoors and adventure sports is putting insurance cover at risk for millions of Australians.
EXCLUSIVE
A love of the great outdoors and adventure sports is putting insurance cover at risk for millions of Australians.
One in six of us plan to participate in risky outdoor activities this year, new research by comparison website Finder.com.au has found, and many people don’t realise that this can potentially stop an insurance payout.
From snow sports to dirt biking, getting travel insurance has always been tricky for those wanting to add adrenaline to their holidays, but Finder said it had also discovered loopholes within income protection and other life insurance policies.
“Thrill seeking can void your ability to make a claim if something goes wrong,” said Finder spokeswoman Bessie Hassan.
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“Often exclusions can be hidden in the fine print, so it’s important for policyholders to get clear on the Product Disclosure Statement to ensure there’s no confusion if it comes time to claim,” she said.
“If still confused, contact the insurer directly.”
Finder’s survey of more than 2000 people found women were equally as adventurous as men, and the most popular adventure sports to be undertaken this year were snow sports, skydiving and scuba diving.
It said some policies would not pay up for income protection or accident cover if injuries were caused by dangerous activities.
Travel insurer Cover-More says its standard policies cover many adventure sports including bungee jumping, white water rafting and skydiving. However, people wanting to do snow sports or motorcycle or moped riding must pay an extra charge.
Hang gliding, rodeo riding, BASE jumping, freestyle BMX riding and running with the bulls are among the activities excluded from its cover.
A spokeswoman for life insurer TAL said adventure sports could attract an increased premium or exclusion, or potentially a decline of any cover.
“It will depend on the type of sport, level of participation and the types of insurance benefits applied for. Income protection outcomes are more likely to be exclusions,” she said.
“Evidence indicates that adventure sports tend to have a higher risk of injury or death. As with all insurance policies, the level of risk impacts the nature of the insurance policy.”
Wotherspoon Wealth director Simon Wotherspoon said consumers should always check in advance what they were covered for.
“You would rather know upfront if something is not going to pay you if you need it. When you put in a claim they’re going to dig deep … without being too cynical, insurers will try to find ways of not paying if they can,” he said.
Mr Wotherspoon said people should work with an adviser and an insurer to give themselves certainty.
WHAT TO DO TO KEEP YOUR INSURANCE
* If you plan to add adventure sports to a holiday, check your travel insurance product disclosure statement (PDS), which will outline what is and isn’t covered.
* Speak to your travel agent or the insurance company directly if you are still unsure about the policy wording. For example, if quad-biking you may be covered if injured yourself but not for any damage you do to others.
* As some forms of income protection, illness and accident insurance will not pay out if you are hurt in a risky sport, understand clearly in advance what is covered before you participate.
* If an insurer offers separate adventure sports cover, that’s a good sign that your standard insurance won’t cover these injuries.
* Check all policy documents, with help from a financial adviser if needed, to ensure you’re not wasting money on insurance that won’t pay up if you need to claim.
Originally published as Love of the great outdoors and adventure sports puts insurance cover at risk for millions of Australians.