Travellers urged to check travel insurance policy wording

MEDIA RELEASE

11 July 2012


Travellers urged to check travel insurance policy wording

The Insurance Council is urging Kiwi’s travelling abroad to check the wording of their travel insurance so they fully understand what their travel insurance covers and what it doesn’t cover.

Most travel insurance companies have some kind of general exclusion clause in their travel policies which apply to certain types of activity, usually high risk and potentially dangerous activities. People needed to be fully aware what these exclusion clauses apply to and avoid exposing themselves to the potential risk, Insurance Council Chief Executive, Chris Ryan says.

Media reports cited the example of a young New Zealand man living and working in Perth who was recently injured in a motor bike accident in Phuket. Regrettably this young man, on the holiday of a lifetime, discovers that his insurance policy specifically excludes injuries sustained in motor bike accidents only after he’d been hospitalised with severe injuries as a result of a motor bike accident.

Had this young man been fully aware of what his travel insurance policy covered and what it specifically excluded – in this case medical expenses arising from motor bike accidents - he may not be facing huge medical bills, including the cost of repatriation back to New Zealand, which is not coved by his travel insurance policy.

Mr Ryan said the Insurance Council sympathised with the young man’s plight. We wish him well and a full recovery from his injuries. If there is any positive that can be taken from this unfortunate situation it has to be the lesson others can apply, that when taking out travel insurance, people need to be absolutely clear about the terms and conditions of the policy contract.

The Insurance Council urged people to read their travel policies closely and if they were unclear about any aspect or confused by the wording to seek advice, either from their travel agent, insurance company or travel insurance broker.

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