Thursday, March 3, 2011

TRAVEL INSURANCE - Do I need it?

According to www.smartraveller.gov.au – more then 20,000 cases a year arise involving Australians in difficulty overseas.
Around 1500 of them requiring hospitalisation or evacuation due to medical reasons.


Medical and Healthcare cover

Although travel insurance covers other things arguably the most important is medical cover. You could find that without travel insurance you will be unable to receive medical attention should an emergency arise. Even within the EU you could find yourself liable to foot the bill for some medical expenses. The government recommends taking out a policy with £1 million of healthcare cover within the EU or £2 million when traveling outside the EU.
Some policies include 24 hour emergency service which means that in the case of a medical emergency an assistance company will make all arrangements for you including repatriation as well as giving on the spot help and advice.
Also note that many policies will exclude cover for injuries incurred whilst doing some sports and activities for example jet-skiing and bungee jumping. In most cases insurers will be happy to extend policies for a small increase in premium so if you want to take part in these high-adrenalin activities you need to arrange this before hand with your insurance company.

 

Possessions cover

The next most important thing to check on your insurance cover is how much protection they give you in the event of your possessions being lost stolen or damaged.
Possessions cover normally has an upper limit on the total claim as well as an upper limit per item so if you are taking anything expensive with you make sure that in the event of it being stolen you will be able to claim it on your insurance policy.
Your policy will often include insurance on your money and documents within certain boundaries so it is worth reading your policy carefully to determine what things are covered and what is not.
Another common mistake whilst traveling is to rely on airline compensation schemes for lost luggage. Airlines are only required to reimburse a small amount of money per kilo of luggage lost. In almost all cases this is unlikely to cover the cost of replacing what is in your luggage especially if you are carrying expensive items.

Finally remember that any theft needs to be reported to the police within 24 hours and the insurance company will ask you to provide proof of this before it pays out on any stolen possessions.

 

Personal Liability Cover

Your policy will include a section on personal liability cover. This covers costs incurred by you if you injure someone or damage their property and you are subsequently sued. Although you may think that you would never do something like damage someone's property you should be aware that this cover will protect you should another person sue you for damage that you incurred accidentally or if you are wrongfully accused of causing injury or damage.

 

Cancellation Cover

Some policies will provide you with a level of cover if you need to cancel any of or your entire trip. You should arrange for this part of the cover to start on the date that you book your holiday.

 

Personal Accident Cover

This is hopefully an area of your policy which you will never have to take advantage of. However, in the unlikely event of death or permanent disability whilst traveling abroad your insurance company will pay out a certain amount of money.
Some policies will give you support with legal expenses to pursue compensation for damages and loss of earnings after a personal injury.

 

General Advice

Declare anything which you may think affects the policy for example health conditions. You may think this will raise the premium but if you do not declare everything relevant you could find that you are no longer covered by the insurance.
If you are booking through an agent choose one which is registered with ATOL (Air Travel Organiser's Licensing) or ABTA (Association of British Travel Agents).
If you are traveling in Europe make sure you apply for a free European Health Insurance Card (EHIC) which allows you access to medical treatment at reduced cost or sometimes free.

Always purchase cover from a well known and recognized insurer. In the event of emergency your policy could be the only financial protection you have, ensure you are with a company who will honour valid claims quickly and in full.
Ensure you keep a copy of your insurance policy and any contact numbers when you go abroad. If you are within the EU, make sure your EHIC is still valid and keep it with you at all times.
You may have some degree of travel cover from other sources such as credit-cards or private healthcare insurance. These are rarely enough to give you fully comprehensive cover abroad so be sure to read the policies in question carefully before deciding not to purchase additional travel insurance.

Be aware that your insurance is unlikely to cover you in the case of alcohol or drug related injury or damage.

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