Aussies warned as ’concerning’ travel insurance mistake exposed

A common misunderstanding that can have huge consequences is putting Australian travellers at risk while overseas.

A common misunderstanding about travel insurance is putting Australians at risk while overseas.

While research shows Aussies are good at taking out travel insurance for financial security and peace of mind, their awareness of common policy exclusions is “concerning”.

Almost all (93 per cent) of travellers were unaware or unsure of at least one common travel insurance exclusion, a recent survey commissioned by Smartraveller and Insurance Council of Australia revealed.

One of those common exclusions is cover while drinking alcohol.

Compare the Market’s Chris Ford told news.com.au “even if it’s just a few drinks” any traveller can be affected by this clause – which can have serious ramifications.

Drinking alcohol can make you ineligible to claim on travel insurance if something goes wrong. Picture: istock

It is a common policy exclusion more than half of Aussies are not clear on. Picture: istock

Data from the survey undertaken in May revealed only 40 per cent of travellers knew policies vary in relation to how they cover and exclude alcohol consumption.

Of those who did know policies vary, only 45 per cent were very clear on what they were and weren’t covered for when drinking alcohol during their most recent overseas trip.

What is considered most worrying is that one in five (17 per cent) who knew about policy variations still knowingly drank more alcohol than was covered by their travel insurance and 10 per cent didn’t know whether the amount they drank was covered or not.

Smartraveller, which is run by the department of foreign affairs and trade, urged Aussies to check their coverage last week, which often varies depending on a person’s blood alcohol content.

Mr Ford said the findings were “concerning” given they showed “so many Australians are putting themselves in potential danger overseas”.

He agreed it was essential to read the documents and product disclosure statements that get sent when travellers take out insurance.

“A lot of travel insurance policies can have exclusions relating to alcohol consumption or drug use, especially when it could result in risky behaviour while travelling,” Mr Ford said.

“The exact wording or exclusion can differ between policies and providers, which is why it’s so important to do your research and compare before purchasing cover for your next trip.

“Insurers can have varying wording around incidents that happen to people while under the influence of alcohol.

“They will likely assess whether the incident could have happened if people were not under the influence.

“It’s something that should be considered by all Australians planning to go overseas.

“Even if it’s just a few drinks, this common exclusion can affect any traveller.”

WA Police officer Ella Cutler fell 10 metres down a cliff in Croatia.

Newcastle grandmother Kylee Enwright fell at a hotel in Thailand.

The survey results come after widely shared cases of Aussies who were caught out by alcohol exclusions last year.

Perth police officer Ella Cutler fell 10 metres down a cliff while holidaying in Croatia last August, and despite having travel insurance, Dubrovnik police ruled that she had been drinking, which meant she wasn’t covered.

Three months earlier, NSW mum Kylee Enwright fell at her Phuket hotel and was also not covered by travel insurance because she had been drinking.

Australians raised hundreds of thousands of dollars to bring both women home to Australia. Sadly, Ms Enwright died in August.