“What isn’t covered on my travel insurance policy?” This is one of the most important questions to ask yourself as you prepare for a trip abroad. Here’s why:
Imagine you’re departing on a two-week vacation to Thailand. In all the excitement of planning, you don’t bother reading your travel insurance policy’s exclusions. You’re feeling healthy and confident–what are the odds you’ll need to use your benefits, anyway?
You decide to partake in a hang-gliding adventure, and everything goes perfectly. Until you land, that is. You hit the ground hard and end up with broken ankles. You submit a claim for reimbursement for your medical expenses from your travel insurance company, but your claim is denied because your policy specifically prohibits claims resulting from hang-gliding.
In this scenario, you could face hundreds (or even thousands) of dollars of unexpected medical expenses. That’s why it’s so important to understand travel insurance exclusions in order to make informed decisions and avoid financial surprises. In this article, you’ll discover the answer to the question “what isn’t covered on my travel insurance policy?” so you can confidently build your travel itinerary and choose an suitable plan.
Understanding Travel Insurance Exclusions
Why Exclusions Exist
Travel insurance exclusions are designed to help insurers manage risk and keep costs affordable. Insurers exclude certain scenarios from coverage to keep premiums lower for the majority of travellers who are not planning to engage in high-risk activities.
Exclusions can vary among providers and even from policy to policy, so it’s vital that you read your product disclosure statement (PDS) thoroughly. Pay special attention to the general exclusions and contact your insurance provider if you have any questions about what is and isn’t covered.
How to Read Your Policy Documents
Reading and understanding your travel insurance policy documents is crucial. Here are some quick tips to help you confidently navigate your PDS and make informed decisions for your trip:
- Review the Schedule of Benefits: This is a chart that shows a summary of the benefits the policy includes. Beside each benefit, you’ll find the maximum amount payable for each insured person. Make sure these amounts provide adequate cover for your travel plans, and take note of any applicable sub-limits.
- Understand Standard Covers: Familiarise yourself with the standard covers included, such as emergency medical expenses, medical repatriation, and more.
- Read the General Exclusions: Pay close attention to the general exclusions section of your policy documents. This section lists situations or conditions that aren’t covered, such as certain pre-existing medical conditions or high-risk activities.
- Look for Definitions: Many policies include a definitions section that explains key terms. This can clarify any jargon or specific language used throughout the document.
- Know How to Contact Your Insurer in an Emergency: Some insurance companies, like us, provide 24/7 emergency assistance to policyholders in need of urgent help. You’ll find this contact information in your product disclosure statement.
- Understand the Claims Process: Find the section that explains how to lodge a claim. It should outline what documentation you need, and any specific steps you need to follow.
Common Travel Insurance Exclusions
1. Pre-Existing Medical Conditions
A pre-existing condition in travel insurance generally refers to any medical condition, injury, illness, or other health issue that existed in a defined period of time (often 12 or more months) prior to the purchase date of the travel insurance. Every travel insurance policy defines pre-existing conditions a little differently, so it’s important to review your product disclosure statement to see how your policy defines this term.
2. High-Risk Activities and Adventure Sports
There are many adventure sports and high-risk activities not covered by most travel insurance policies, such as snow sports, motor sports, parachuting, and hang-gliding. If you were to get injured while participating in one of these excluded activities, your travel insurance may not cover you.
To ensure you have cover for adventure sports, consider purchasing additional cover (such as a Snow Pack) specifically designed for thrill-seeking pursuits. Always remember to read your policy carefully to see which activities are covered so you can avoid unpleasant surprises during your travels.
3. Travelling Against Government Advice
Travelling against government advice is nearly always excluded, but policies and providers have different interpretations of what exactly this means. For example, our single trip international insurance plan excludes loss from travelling to (or choosing to remain in) a country or region for which the Department of Foreign Affairs and Trade (DFAT) has issued “do not travel” advice.
4. Incidents Involving Alcohol or Drugs
It’s important to know that claims arising from alcohol and drug-related incidents are often excluded from cover. Some policies specify a blood alcohol concentration (BAC) level that voids your coverage. Others may make a claim determination based on available reports, which could be from a relevant medical practitioner, forensic expert, bystander, your own admission, or a description of events documented by a paramedic, doctor, or nurse.
Our advice: review your policy details carefully and practice responsible consumption of alcoholic beverages as you travel and explore new places abroad.
5. Reckless or Illegal Behaviour
Reckless and illegal behaviour generally refers to actions or choices that could increase the risk of injury or loss, or loss due to involvement in criminal activity. Common examples include:
- Engaging in high-risk activities or extreme sports without following proper safety measures
- Trespassing or travelling to an area that is under a “do not travel” travel advisory
- Excessive alcohol consumption to the point of impairment
- Taking part in illegal activities during travel, like using illegal substances
Reckless and illegal behaviour can also be a reason why your claim is denied.
6. Unattended Belongings
Travel insurance policies will not typically cover you for theft or loss of unattended baggage. The definition of “unattended” can vary among policies and providers, but it generally refers to luggage or personal effects left for any length of time:
- in a public place where they can be taken without your knowledge,
- at a distance in a public place where you can’t prevent them from being taken,
- with someone who is not travelling with you, or
- in an unlocked vehicle or unconcealed in a vehicle.
Here are a few preventive measures you can take to safeguard your belongings:
- Use sturdy locks on your luggage.
- Keep valuables like passports, cash, and cards close to your body and out of sight using a money belt or hidden pouch.
- Stay alert in crowded places, avoid distractions, and don’t wear expensive jewellery or flash valuable items in public.
- Store valuables in hotel safes when you’re not using them.
- Don’t keep all your cash, credit cards, and other expensive items in the same place.
7. Pre-Trip Cancellations for Uncovered Reasons
It’s important to know travel insurance policies that include trip cancellation cover will only reimburse you if you cancel or change your travel plans due to a covered reason outlined in your product disclosure documents.
Some common covered reasons include:
- You, someone you’re travelling with, a close family member, or someone you were planning to stay with for a good chunk of your holiday gets seriously ill, injured, or passes away
- The Department of Foreign Affairs and Trade upgrades their travel advice level for the country you’re visiting to “do not travel” after you’ve purchased your policy
- Severe weather causes your airline to cancel your flight
8. Epidemics and Pandemics
Travel insurance typically excludes claims related to pandemics or epidemics, but many policies have made exceptions for expenses resulting from the COVID-19 pandemic. Check your policy details and ensure you have a clear understanding of what is and isn’t covered regarding pandemics and epidemics.
Insurers can change their terms based on global health situations. One way to remain aware of current global affairs is to frequently review the travel alerts at https://www.smartraveller.gov.au/destinations. Subscribe and download the app to receive up-to-date travel advice.
9. Acts of Terrorism or Natural Disasters
Losses due to acts of terrorism or natural disasters may not be covered, or this cover may be limited. Be sure to carefully review your policy language to determine if you have any terrorism or natural disaster coverage. Reach out to your provider if you need further clarification.
10. Financial Default of Travel Suppliers
Financial default refers to bankruptcy or insolvency of travel providers, such as airlines, car rental agencies, hotels, tour operators, and more. Essentially, if your travel insurance plan does not cover the financial default of travel providers, then you won’t be reimbursed for prepaid expenses if a provider goes out of business.
If this is something you’re concerned about, look for a travel insurance policy that includes coverage for expenses resulting from insolvency of travel providers.
Other Exclusions to Be Aware Of
1. Losses Due to Government Confiscation
Items seized by customs or other government authorities are likely not covered. Be sure to comply with all local laws and regulations regarding prohibited items. You can learn more about the local laws of specific destinations using smartraveller.gov.au’s destinations tool.
2. War and Civil Unrest
Claims arising from war, invasion, or revolution are typically excluded. Be cautious when travelling to high-risk areas and regions with known conflicts. Always check smartraveller.gov.au before and during your trip to stay up to date regarding travel advisories.
3. Unapproved Medical Treatments
Travel insurance is designed to cover unexpected injury or illness incurred abroad. Experimental or elective medical procedures are not covered. This could include cosmetic surgeries, alternative therapies, or treatments not approved by medical authorities.
4. Mental Health Conditions
Some policies exclude or have certain limitations regarding cover for mental health issues and related incidents. Be sure to read your product disclosure documents carefully to understand what is excluded. Look for a policy that offers some mental health coverage if this is vital for your health during your trip.
5. Self-Inflicted Injuries and Suicide
Injuries or death resulting from self-harm are generally not covered. If you find yourself struggling with your mental health during travel, you can look up mental health services in your destination, contact a local helpline, seek virtual therapy or reach out to support groups using apps and online services, or contact the nearest embassy or consulate for information on mental health resources. Always visit a local hospital or clinic if you need immediate help,
6. Participation in Professional Sports or Manual Labor
Most travel insurance policies exclude cover for injuries sustained while engaging in professional sports or manual labour jobs. However, they may provide coverage for injuries resulting from amateur sports and recreational activities.
How to Ensure Adequate Cover
1. Purchase Additional Cover for Specific Activities
- Winter Sports: Winter sports may be excluded from cover. If you plan to participate in winter sports such as skiing or snowboarding, you may be able to add a snow sports package during the checkout process.
- Cruise Cover: Ensure you have cruise-specific cover when going on a sea voyage. For example, if you purchase a single trip international insurance plan from us, you can add a cruise package to provide cover for various events that could occur on a multi-night cruise.
2. Review and Understand Policy Terms
- Read the PDS: Thoroughly read the product disclosure statement for any travel insurance policy you’re considering. Pay special attention to the general exclusions.
- Ask Questions: Contact the insurer for clarification on any unclear terms.
3. Keep Documentation
- Receipts: Keep receipts for all valuables and purchases.
- Reports: Always lodge a police report if you experience theft or loss on your trip. You will need these if you lodge a claim.
- Medical Records: Obtain documentation for any medical treatments. This could include medical records, provider communications, receipts, and invoices.
- Benefit: Providing ample documentation of a claim will facilitate the claims process and reduce the likelihood of a claim’s denial due to lack of evidence.
Stay Informed and Stay Protected
In conclusion, being able to answer the question “what isn’t covered on my travel insurance policy?” is just as important as knowing what is covered. By being proactive and familiarising yourself with common exclusions—like certain pre-existing conditions, high-risk activities, and loss of unattended belongings—you can make necessary adjustments to your policy and avoid unexpected costs during your trip.
Before you head out on your next adventure, take time to review your policy and reach out to your insurer with any questions. This will help you stay informed, stay protected, and enjoy your travels with peace of mind.
Ready to get a comprehensive travel insurance quote? You can see a price and buy a single trip international plan in two minutes with our travel insurance cost calculator.
Please note that this blog provides a summary of the available coverage. Refer to the PDS for further information.
