Have Cover, Can Travel

The Sunday Age

Sunday April 17, 2005

Lee Mylne

As the saying goes, if you can't afford travel insurance, you can't afford to travel. Those who've been caught by illness or injury can attest to the peace of mind that proper insurance coverage can give.

The Department of Foreign Affairs and Trade advises all Australians to buy travel insurance before going overseas. Each year DFAT helps thousands of Australians in difficulty overseas - including more than 700 hospitalisations, 600 deaths and 100 medical evacuations. And while that's only a tiny fraction of the 4 million Australians who travel overseas each year, it pays to play safe.

Hospital costs in South-East Asia regularly exceed $800 a day, and in the United States, basic hospital treatment can cost 10 to 15 times what you would pay in Australia for private hospital treatment. Medical evacuations from the US usually cost between $75,000 and $95,000 and sometimes up to $300,000, according to department figures. Evacuations from closer places, such as Bali, can run to more than $60,000.

Unlimited cover for hospital and medical costs is vital for travel to the US, Japan and Europe. A brochure listing countries with reciprocal rights with Australia for Medicare-style care is available at airports or through travel agents. But if a public bed is not available, you may still be treated and charged as a private hospital patient.

If you are not covered by insurance, you are liable for medical and associated costs - and that could mean selling your home and other assets such as superannuation to pay for the cost.

What kind of insurance is the best?

"As much as you can afford," says Insurance Council of Australia (ICA) spokesman Rod Frail. Medical expenses, repatriation expenses, lost luggage and trip cancellation are just some of the possible disasters most insurance policies cover.

The ICA advises travellers to:

? Look out for exclusions that may help keep the premium low, but may affect your ability to claim successfully.

? Make sure the policy will be recognised around the world. In some countries, if they don't recognise the insurance underwriter, they may not admit you to a hospital.

"Make sure you are provided with an international emergency contact number, and ask your travel agent who the underwriter is, and where they are based," advises Frail. "Especially if you are travelling to a remote place, where large insurance companies are not likely to have a base."

Most travel insurance policies won't cover luggage that is left unattended in public places or your loss if your tour operator or airline goes broke and leaves you stranded. Travel policies also usually don't cover for war and may not cover for terrorist acts. In most cases a travel insurance policy won't provide cover if you fly home early because of a death in your family.

Some insurance companies base a refusal to cover travel to certain "unsafe" countries. If you cancel your trip in the absence of an official warning, your insurance may not cover the cancellation, so check first.

Travel insurance is usually based on the policy holder's age, destination (it is easier - and cheaper - to get insurance to travel to New Zealand than to countries such as the US, for example), your length of stay, and any pre-existing medical conditions. If you are over 65, you may need to pay a higher premium.

WHERE TO START

www.smarttraveller.gov.au

www.ica.com.au

© 2005 The Sunday Age

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