Jenny travelled to Bali for her holiday and was out nightclubbing with friends when she fell ill after drinking a cocktail. Her friends were quick to recognize the symptoms of methanol poising and quickly got her to the hospital.
Thankfully Jenny recovered after spending two weeks in a Bali hospital however, because she had been drinking alcohol and was under the legal age to drink in Bali (the legal age is 21 years old) her insurer refused to pay her claim. Her family had to source money and sold their car to pay the $25,000 in medical expenses.
The last thing on the minds of most people is to consider travel insurance, this one decision can turn holiday heaven into your worst nightmare. Failure to take out travel insurance or selecting the right cover can cost hundreds of thousands of dollars, cause grief to family and loved ones and limit the quality and timing of medical care required. Accidents can impact travellers for the rest of their life.
Some hospitals will insist on upfront payment or proof of travel insurance before treating foreign patients. If you're extremely sick you may be evacuated to Australia or Singapore at a cost of $100,000 or more, so it goes without saying that travel insurance is a must.
Do You Really Need Travel Insurance?
If you are in any doubt about the affirmative answer to this question go back to paragraph one and read it again. Alternatively, Google search travel nightmares and bear witness to the thousands or horror stories of the failure by people to take out travel insurance. Young and old alike.
What Type Of Travel Insurance Do You Need?
Insurance requirements can differ depending on a number of factors including:
- Are you pregnant?
- Tour cancellation?
- Travel provider insolvency?
- What about natural disasters? (Mount Agung Eruptions)
- Are you a young or older traveler?
- Are you considering hiring a motor scooter?
- Are you carrying valuable equipment on your travels?
- Do you require the policy to include loss of baggage?
- What about travel cancellation or interruption to travel?
It may sound complicated however a visit to a few reputable insurance comparison websites, can sort through the cloud of uncertainty around the key items to cover. You probably have a good idea about the type of holiday you will be taking, beach, action or adventure. Insurance companies utilize the method of assumption so by minimizing or eliminating activities you won’t be participating in during your holiday is the key factor to keep costs down.
Consider the policy excess as it may be that it applies for each claim you make. As an example, if you experience a number of recoverable events whilst on holiday your baggage was lost, your wallet was stolen and you required a Doctor visit to your hotel room. These potentially would be three separate claims against your policy, meaning – if your policy excess is $100.00 – in order to claim against each event, you will have to spend a total of $300.00 Ideally keep the excess as low as possible or opt for an excess free policy. It will cost more when purchasing the overall policy.
Generally, there are three types of cover available on any policy – basic, comprehensive and fully comprehensive.
Travel insurance does not give you super powers. Consider the laws of Indonesia take out travel insurance before leaving home.