Scoop  Health

8 February 2011

Kiwi Traveller Incurs $1m Medical Bill

One in four Kiwi travellers are putting themselves at risk of incurring “astronomical” medical and transportation bills by failing to take out inexpensive travel insurance cover.

New claims data from Southern Cross Travel Insurance (SCTI) shows that over half of its $15m total claims costs in 2010 related to medical and evacuation expenses.

The most expensive claim came from a traveller to the USA who incurred over one million dollars in medical expenses alone. The top five claims all related to costs associated with a traveller becoming critically ill while overseas.

In 2010, 55% of SCTI claims paid related to medical and evacuation expenses. A further 22% of claims paid related to cancellation and changes to planned journey, and 19% for baggage and personal items.

SCTI research estimates around one in four Kiwis heading overseas do not take out travel insurance.

The company’s CEO Craig Morrison said the cost of travel insurance represented just a tiny fraction of the potential cost of becoming ill or injured abroad, even in countries with reciprocal healthcare arrangements such as the UK and Australia.

“In the US and Europe, medical costs can be astronomical – and that’s before you take into account the cost of evacuation. In many countries around the world, if an accident or health problem strikes you may also be left with a hefty bill for air, boat or ambulance travel.”

For example, in Victoria, Australia, the fee for an ambulance call out starts at $920 and can rise into the thousands while helicopter ambulance fees in the state start at $3,200.

Morrison said the cost of repatriation could also be prohibitive. Depending on the severity and type of injury or illness, travel back to New Zealand may require the purchase of a first-class seat, as well as the travel costs of an accompanying medical professional or family member, or even chartering an air ambulance.

SCTI provides travel insurance to more than 200,000 customers annually in both New Zealand and Australia. Around 92% of all SCTI policies are purchased through its website.

ENDS

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