Written by Roxanne Libatique for Insurance Business magazine
Reproduced with permission
Dec 14, 2024

With school holidays approaching, the Insurance Council of Australia (ICA) has encouraged Australians traveling abroad this summer to secure comprehensive travel insurance.
The organisation emphasised that travel insurance is as vital as a passport when planning an overseas trip.

A 2024 survey conducted by the ICA and the Department of Foreign Affairs and Trade (DFAT) revealed that one in eight Australians did not have travel insurance for their most recent overseas trip. The findings also indicated widespread gaps in coverage awareness, leaving many travellers exposed to potential financial risks.

Areas to review in travel insurance policies
The ICA highlighted several critical aspects travellers should examine when choosing a policy, which insurers and brokers could relay to their clients.
Prescription medications
Some destinations require documented proof of prescriptions. The survey found that 45% of Australians travelled with prescription medications during their last trip.
Alcohol-related coverage
Insurance policies may vary in their handling of alcohol-related incidents. Travellers aged 18 to 29 were identified as more likely to encounter risks linked to alcohol use.
Lost or damaged belongings
Policies typically cover replacement costs for common items, such as smartphones, but limits may apply. Travellers should verify coverage for high-value possessions and ensure they understand the circumstances under which claims can be made.
Medical treatment costs
Healthcare abroad can be expensive. Travellers are urged to confirm that their insurance covers the medical treatments they might require, particularly for activities such as adventure sports or motorbike use.
Exclusions
Travellers should review exclusions carefully, as policies often do not cover incidents such as unlicensed motorcycle use, pre-existing medical conditions, or losses caused by natural disasters. Many survey respondents were unaware of at least one standard exclusion in their policy.
Travellers are advised to review the Product Disclosure Statement (PDS) of their policy in detail to fully understand its terms.

Expert advice for travellers
The Insurance Council of Australia - ICA - recommends consulting travel providers and resources such as Smartraveller to stay informed about travel requirements and risks.
Andrew Hall, CEO of the ICA, emphasised the importance of preparation, stating that having travel insurance ensures that travellers are protected financially when things do not go as planned.
“While we can do all we can to prepare for an overseas trip, sometimes the unplanned and unexpected can happen. That’s why having travel insurance is so important,” he said.
He also reminded Australians to purchase insurance before departure and tailor their policy to their planned activities, such as cruises or high-adventure travel.

Rising need for consular support
The reminder comes as Dept of Foreign Affairs and Trade – DFAT - reports a surge in consular assistance requests. The 2023-24 State of Play report revealed that over 15,000 Australians required help abroad in the past year.
Common issues included illness, theft, and passport problems, with lost and stolen passports increasing by 28% and incidents of theft rising by 26%