Bali—just the mention of it conjures up images of stunning beaches and vibrant markets. It’s no wonder a grand total of 856,979 Australians travelled to Bali in the first half of 2024 alone, making Australia the leading source of visitors to this island province of Indonesia. Whether you’re excited to trek through the jungle or dive into the island’s rich culture, there’s something about Bali that keeps Aussies coming back year after year. But before you book a beachfront villa and start packing your bags, there’s one essential step you don’t want to skip: travel insurance for Bali.
You’re probably wondering, “Do I need travel insurance for Bali?” The answer is a resounding yes. While Bali offers an idyllic escape, it comes with the same risks of any international destination—from unpredictable weather and natural disasters to accidents and illness. Travel insurance provides cover in case things go awry so you can enjoy your time away with peace of mind.
In this article, we’ll break down why Australians should seriously consider purchasing travel insurance cover when planning to visit Bali.
Travel Insurance Basics
What Is Travel Insurance?
Let’s first make sure you understand what travel insurance is and how it can help. Simply put, travel insurance is a type of short-term cover designed for domestic or international trips. It provides reimbursement in case things don’t go according to plan while you’re away from home. (For instance, if you need overseas medical treatment or your airline loses your luggage.)
Asking yourself, “Why do I need travel insurance for Bali?” Here’s why: imagine you’ve planned the perfect island getaway. You’re all set for sun, surf, and adventure. But then, a few days before your flight, you get sick and can’t travel. Or maybe you end up breaking your ankle while going for a run on the beach. International travel insurance can help cover the costs of these types of unforeseen circumstances, like medical bills, trip cancellations, lost luggage, or even medical evacuation back to Australia.
There are different types of travel insurance, but most policies will offer cover for a mix of things like:
- Overseas Medical Emergencies: If you get sick or injured, overseas medical costs can add up quickly. A travel policy can compensate you for all covered overseas medical expenses.
- Trip Cancellation or Interruption: If you need to cancel your trip unexpectedly due to a covered reason, travel insurance can reimburse your prepaid, nonrefundable trip expenses, like flights and accommodations.
- Lost or Stolen Personal Effects: Whether it’s a missing suitcase or a stolen phone, insurance can help you recover some of the costs of replacing essential items.
- Emergency Assistance: A high-quality travel plan will provide 24/7 support for emergencies so you can travel fearlessly knowing your provider has your back.
In a nutshell, travel insurance is your backup plan for the unpredictable.
How Travel Insurance Works: A Quick Overview
Here’s a basic rundown of how travel insurance works. You get a free quote from a reputable travel insurer online. This is a simple process that typically takes only a minute and involves inputting some details about yourself and your Bali trip. You adjust your cover as necessary (look for a plan that is customisable, like our international single trip plan), finalise the traveller details, and then add your payment details to purchase.
The amount you pay for your plan is your premium. This is typically a one-time fee that you pay to protect your trip against unexpected expenses. If something goes wrong while you’re on holiday or on a work trip, like you have an accident while hiking, you will have peace of mind knowing you’ll be reimbursed up to the amount outlined in your PDS (product disclosure statement) for all eligible expenses.
You might need to provide documentation for situations like hospital visits, trip cancellations, or lost baggage in order to receive reimbursement. How does reimbursement work? As soon as you are able, you will lodge a claim following the procedures outlined in your PDS. Once your insurer has reviewed and approved your claim, you will receive reimbursement through wire transfer or other means of payment.
Essentially, travel insurance works by providing financial protection for unexpected events. You pay for it upfront, and if something goes wrong—whether it’s a cancelled flight, an overseas medical emergency, or lost baggage—you’re not left in the lurch.
Key Benefits of Travel Insurance for Australians Visiting Bali
Overseas Medical Emergencies and Hospitalisation Costs
Travel insurance can cover unexpected medical costs resulting from a sudden injury or illness abroad, such as hospital expenses, physician fees, medical treatment, and more.
Coverage for Trip Cancellations or Interruptions
If you need to cancel your trip or return home early due to a covered reason listed in your PDS, your travel insurance policy can cover your prepaid, nonrefundable expenses, such as flights, accommodations, and planned activities.
Covered reasons vary from policy to policy, but some common, unexpected, eligible events include illness that prevents you from travelling, a family emergency (like the death of a loved one), or severe weather that grounds your flight.
Lost, Stolen, or Damaged Belongings
No cover would be complete without benefits for accidentally lost, stolen, damaged, or delayed baggage and personal effects. When lodging a claim for luggage cover, be sure to include proof of ownership of the items as well as a copy of a report showing that you reported the loss, theft, or damage to the proper authorities.
Natural Disasters and Weather-Related Incidents
Travel insurance can cover trip cancellations, interruptions, and delays due to natural disasters or severe weather that prevent you from travelling or staying in your planned accommodations. This type of cover is especially important for travel to Bali, as weather conditions in Bali are unpredictable and can change in an instant.
Furthermore, Bali has a significant potential for volcanic activity that could severely impact your trip. The province’s Mount Agung volcano has experienced eruptions in recent years and is currently considered a threat to the island.
Emergency Evacuation and Repatriation
Did you know emergency air transportation via helicopter can cost Australians up to $29,635? And that’s just within Australia. Medical evacuation from Bali to Australia could be an even larger expense.
According to Smartraveller.com, “Critical care for Australians who become seriously ill, including in Bali, is significantly below the standard available in Australia.” That’s why it’s so essential to look for travel insurance for Bali that includes medical repatriation coverage. This benefit can pay travelling costs to transport you back to Australia if this is medically necessary.
Understanding Risks in Bali
Health Risks Unique to Bali
Bali can pose some health risks to travellers, including Mpox, dengue fever, zika virus, malaria, Japanese encephalitis and filariasis, Legionnaires’ disease, polio, and more. Traveller’s diarrhoea (caused by consuming contaminated food or drinking tap water) is so common in Bali that it’s even been given a nickname: Bali Belly.
Fortunately, there are several safety tips you can follow to prevent the risk of diseases and other illnesses like Bali Belly before and during your holiday:
- Get all recommended vaccinations
- Use insect repellent
- Boil drinking water or drink bottled water (and be sure to avoid ice cubes!)
- Only eat meat from reputable vendors
- Drink alcohol only at licensed locations
- Don’t feed or touch animals (unfortunately, this includes monkeys, even in areas where you’re encouraged to interact with them)
- Avoid henna tattoos that can cause skin reactions
- Get international travel insurance to mitigate the costs of seeking health care in Bali, as urgent treatment could be vital in certain emergency scenarios
Environmental and Natural Disaster Risks
Bali frequently experiences severe weather that escalates without advanced warning, as well as natural disasters such as:
- Floods
- Landslides and mudslides
- Earthquakes
- Storms
- Tsunamis
Another environmental risk unique to Bali is the island province’s two active volcanoes: Mount Agung and Mount Batur. Volcanic eruptions can cause suffocation, while volcanic ash can cause breathing difficulties and infectious diseases.
That’s why the Australian government recommends having comprehensive cover if you’re planning to travel to an area near an active volcano, like Bali. Bali travel insurance can provide cover for a holiday that is cancelled, interrupted, or delayed due to an unforeseen natural disaster or inclement weather that prevents you from travelling or destroys your planned accommodations.
Common Travel Incidents for Australians in Bali
Common risks for Australian travellers in Bali include theft of valuables, like purses and phones, credit card and ATM fraud, motor vehicle accidents, and injury resulting from adventure activities. Travel insurance cover can safeguard your trip against common incidents by providing emergency assistance and reimbursement for the cost of seeking necessary overseas medical care or replacing lost or stolen items.
Choosing the Right Travel Insurance Policy
Essential Cover to Look For in a Policy for Bali
Look for an insurance policy that includes cover for unexpected overseas medical care, trip cancellation, trip interruption, travel delays, lost or stolen luggage or personal effects, and personal liability.
Consider adding optional cover for specific planned activities, such as a trip cancellation and interruption package, a travel delay package, personal accident package, personal liability package, and more.
Comparing Travel Insurance Providers in Australia
When comparing travel insurance plans, here is what to consider:
- Cover: Make sure the policy provides cover for the essentials, like unexpected overseas medical expenses and evacuations, trip cancellations, and baggage that’s accidentally lost, stolen, damaged, or delayed. You’ll also want to make sure the insured sums for each benefit are adequate.
- Personalisation: No two travellers and no two trips are the same. That’s why there’s no excuse for a lack of customisation. The policy you choose should allow you to tailor your cover limits, benefits, and excess to your specific needs.
- Cost: We’d be lying if we said cost wasn’t important, but you don’t want to choose the cheapest cover and call it a day. Look for a travel insurance policy that balances cover with cost so you have cover for essential benefits without breaking the bank.
- Customer Service: Travel complications and medical emergencies don’t follow a 9-5 schedule, and you never know when you might need help–whether it’s the middle of the night, during a weekend, or on a public holiday. That’s why it’s important to choose a provider that offers 24/7 customer assistance. Whether you need to report a claim, get help replacing lost travel documents, or find a nearby hospital, you’ll get peace of mind knowing help is just a phone call away.
Potential Insurance Needs for Bali Activities
Insurance for Water Sports and Adventure Activities
If you’re planning to take in the sights and relax on the beach, then you’ll probably be secure with standard travel insurance cover. But if water and adventure sports like snorkelling, surfing, and scuba diving are on the agenda, you’ll need to look for a plan that provides adequate cover for these types of activities. Be sure to read the PDS as there may be terms, conditions, limits and sub-limits associated with certain activities.
We recommend that you only participate in activities that are covered under your Bali travel insurance. That way, you won’t be left alone with large expenses in case of an accidental injury during your holiday.
Motorbike and Scooter Accidents
Some insurance plans for Aussies, like our international single trip plan, offer optional add-on cover for travellers planning to rent a moped or motorcycle during their time in Bali. This ensures cover for eligible injuries that could occur while riding a moped or motorcycle during your trip. Always read the conditions for any add-on benefits so you don’t unintentionally void your cover.
High-Risk Activities and Coverage Exclusions
Travel insurers often exclude high-risk activities (parachuting, hang-gliding, etc.) to keep premiums lower for the majority of travellers who are not planning to engage in these types of activities (our international single trip plan is one such example). However, like with motorcycle/moped cover, you may have the option to add cover for certain excluded activities through an optional package with some other insurance providers in the market.
Always read your PDS carefully, paying special attention to the exclusions. If your travel insurance does not cover a certain activity, you may want to remove it from your travel itinerary.
Tips for Australians Buying Travel Insurance for Bali
Assessing Personal Health and Risk Factors
It’s always a good idea to assess your physical and mental health before you travel–especially if you have an existing medical condition. The Australian government recommends scheduling a basic health check-up to ask your doctor whether your travel plans may impact your health, as well as getting any recommended vaccinations at least 8 weeks before you depart for Bali.
When you’re asking yourself, “Do I need travel insurance for Bali?” be sure to consider your specific health needs. For example, if you have a pre-existing condition for which you may need to seek medical treatment during your holiday, look for a plan that provides pre-existing condition cover. Our international single trip plan includes a list of automatically covered pre-existing medical conditions. Please read the PDS to assess whether the terms and conditions are suitable for you.
Understanding Policy Limits and Exclusions
All travel insurance plans have specific policy limits and exclusions. Your policy limit is the maximum amount your insurer will pay for a covered claim. Think of it as the cap on how much protection you get. For example, if you choose a sum insured of $5,000 for baggage cover, that is the maximum amount you would get for baggage loss, theft, or damage. These limits can vary by type of coverage (e.g. trip cancellation), so it’s important to read the fine print and choose limits that suit your needs.
Also carefully read all policy exclusions. These are the situations and expenses your plan won’t cover. It’s like the fine print that says, “Nope, we won’t pay for this.” Common exclusions include things like extreme sports and travelling against government advice.
Comparing Costs vs. Benefits
When planning a trip to Bali, it’s tempting to cut costs on travel insurance. But remember, while you want to stick to your budget, you don’t want to skimp on cover that could save you from major headaches down the road. Focus on finding a policy that offers good value—not just the cheapest price. Prioritise essentials like overseas medical cover (Bali’s healthcare can be pricey for tourists), trip cancellation, and coverage for theft, which can happen in busy tourist areas.
What Travel Insurance Doesn’t Cover
Common Exclusions in Travel Insurance Policies
Travel insurance exclusions help insurance providers manage risk and keep costs affordable. Exclusions can vary among providers and even among policies, so it’s vital that you read your PDS thoroughly and pay special attention to the general exclusions.
In the meantime, here’s a quick overview of some common travel situations that many travel insurance plans do not cover:
- Pre-Existing Conditions: These generally refer to medical conditions, injuries, illnesses, or other health issues that existed in a defined period of time (often 12 months or more) before the start of your trip. Some travel insurance plans exclude pre-existing medical conditions entirely, some waive the exclusion if travellers meet certain requirements, and others cover pre-existing conditions only in specific circumstances.
- Reckless or Illegal Behaviour: Nearly all travel policies exclude cover for expenses resulting from reckless or illegal behaviour, such as trespassing, excessive alcohol consumption to the point of impairment, use of illegal substances, or anything else that is illegal or could increase the risk of injury or loss.
- Travelling Against Government Advice: Travelling against government advice is nearly always excluded from travel insurance, but different policies and providers have different interpretations of what this means.
(Pro tip: always check travel advisories on smartraveller.gov.au before and during travel.)
Wondering what else might be excluded from your Bali travel insurance? Check out our article titled “Travel Insurance Exclusions: What You Must Know.”
How to Ensure Your Insurance Cover Remains in Tact
No one wants to think about their travel insurance claim getting denied, but it’s always good to know the potential pitfalls. Here are a few simple steps you can take to make sure your cover remains intact in case things go sideways during your trip:
- Insure the entirety of your holiday, including all prepaid, nonrefundable travel expenses
- Purchase additional cover packages for specific planned activities
- Read your PDS and make sure you understand all exclusions
- Check gov.au before your trip and do not travel against government advice
- Follow all local laws and do not engage in risky or illegal activity
- Only participate in covered activities
- Ensure your belongings are never unattended
- Seek medical attention immediately if necessary
- Obtain and keep all documentation, like health records if you visit a hospital, police reports if your bags are stolen, and receipts for items purchased
- Reach out to your insurance provider if you experience a travel or medical emergency or have questions about your cover
- Be thorough when lodging your claim form and attach all supporting documents
- Check in during the claims process and respond swiftly if your insurance company requests more information
Budget-Friendly Travel Insurance Options for Australians
Finding Affordable Travel Insurance
Some travel insurance plans will allow you to customise your policy to your specific wants and needs so you only pay for the cover you really need. For example, our international single trip plan lets you personalise your quote by adding or removing packages such as trip cancellation and interruption, travel delay, personal accident, personal liability, baggage, and more.
Our international single trip plan allows you to further tailor your cover to your budget by choosing your sum insured for certain benefits, such as your trip cancellation and interruption benefits.
While choosing Bali travel insurance that fits your budget is important, so is having enough cover in case you face an unexpected travel hiccup or emergency abroad. Try to balance cover and cost, and always reach out to any potential insurer if you need help choosing the best cover for your trip to Indonesia. Our experts are always available to assist you.
Final Thoughts on Travel Insurance for Australians Visiting Bali
Bali’s effortless blend of adventure, relaxation, and spirituality makes it the perfect destination for Australians on holiday, but it’s always better to be safe than sorry when it comes to travel. Whether you face an unexpected emergency, trip cancellation, or luggage theft, travel insurance for Bali ensures you’re not left alone with hefty bills for certain expenses during your dream holiday. If you’re ready to check rates or purchase a plan, visit our quick and easy quote generator now.
Please note that this blog provides a summary of the available coverage. Refer to the PDS for further information.
