Australian traveller’s $447k holiday shock

AN Aussie traveller on a US trip wound up with an unexpected bill of almost half a million dollars — and it wasn’t for a fancy hotel.

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ACCIDENT-PRONE Australian travellers are regularly making six-figure insurance claims after coming to grief on overseas holidays.

Figures released by Southern Cross Travel Insurance show the biggest claim made by an Australian holiday maker last year was $447,000 for medical care needed after falling down stairs in the US.

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Insurer Cover-More also paid out close to $1 million for two separate medical claims from the US, involving a kidney condition and a bowel obstruction.

Other big sums paid out to travellers included $176,000 for a patient who suffered pneumonia and epileptic seizures in China, and $137,000 for bypass surgery in the US following a heart attack.

Another Australian holiday-maker was reimbursed $82,000 in medical bills after being hospitalised for sand fly bites on a tropical island.

A list compiled by Cover-More found the US was the most expensive country for claims lodged by Australian travellers, followed by Thailand, England, France and China.

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Cover-More spokesman Zac Brookes said something as simple as a minor cut needing stitches could result in a $7000 bill somewhere like New York.

And holiday-makers enjoying a “cheap” vacation in Bali could face a $40,000 bill if they needed to be medevaced out as the result of scooter crash or surfing accident.

Mitchell Watson from financial research firm Canstar said with travel insurance starting at about $50 for singles, it was a “no-brainer”.

“Small accidents can result in big claims,” said Mr Watson.

“For example a cruise ship passenger who, while suffering terrible sea sickness fell and broke their glasses, claimed and received over $30,000 in medical, cancellation and property losses.”

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Canstar’s research found medical claims outnumbered those made for lost or stolen baggage and personal items.

The third most common claim was for cancellation of flights, or a claim resulting from someone needing to return to Australia early due to an emergency at home.

Mr Watson said it was imperative people checked what their policy covered them for, before they went on holiday.

“This is especially important if what you’ve got planned is a little more thrillseeking than a walking tour of Jane Austen’s favourite tea shops,” he said.

“Going diving? Check your policy. Does it say you need a PADI or similar certificate to be covered? Don’t assume automatic coverage.”

Bureau of Statistics data for the year to June 30, showed Australians took nearly 9 million short-term overseas trips.

Research undertaken by the Insurance Council of Australia found as many as one in five Australians who travelled overseas regularly did not take out travel insurance.