ICA alerts Australians to review travel insurance for alcohol coverage
ICA alerts Australians to review travel insurance for alcohol coverage | Insurance Business Australia
Travel
ICA alerts Australians to review travel insurance for alcohol coverage
Warning issued amid school holiday period
Travel
By
Roxanne Libatique
With millions of Australians travelling to warmer climates during the July school holidays, the Insurance Council of Australia (ICA) has highlighted the importance of securing adequate travel insurance, particularly in relation to alcohol consumption.
The ICA emphasised that travel insurance is crucial for protecting against unexpected accidents, losses, or damages and should be considered as essential as boarding passes and passports. These policies often include exclusions for incidents occurring under the influence of alcohol.
It noted that many policies cover accidents or losses if the policyholder’s blood alcohol level is up to 0.19%, approximately four times Australia’s legal driving limit.
Data on travel insurance with alcohol coverage in Australia
A survey conducted by Quantum Market Research for the ICA and the Department of Foreign Affairs and Trade’s Smartraveller revealed the following:
87% of Australians had travel insurance on their last overseas trip, and 69% of them consumed alcohol.
40% of travellers knew that alcohol consumption requirements vary by insurer.
55% of insured travellers who were aware of policy variations and drank alcohol were unsure of their coverage regarding alcohol consumption in case of an incident.
13% of Australians were uninsured on their most recent overseas trip.
Younger Australians, those from low-income households, and those from culturally and linguistically diverse backgrounds were more likely to travel without insurance.
Australian travellers urged to read policy documents
ICA CEO Andrew Hall has advised Australians to read their policy documents to fully understand their coverage, preventing financial strain from unexpected incidents.
“When you are planning your overseas holiday travel insurance is a must-have, as is ensuring that you are covered for the activities you have planned,” he said. “While enjoying a drink or two is a key part of holidaying for millions of Australians, travellers should be aware of what they are covered for so that a broken bone doesn’t lead to a broken bank account.
“Travellers should make sure they read their policy documents so they understand what they’re covered for, whether that involves drinking alcohol, going for a hike, or riding a motorcycle. Shop around, compare options, and ask questions to find the right coverage so the trip of your dreams doesn’t become a nightmare.”
Natalie Ball, managing director of Comparetravelinsurance.com.au, emphasised the importance of being aware of heatwave risks.
“Travellers should be mindful when planning vacations during the hottest months of the year. While a European summer is undeniably appealing, it’s crucial for travellers to understand the seriousness of heatstroke and its potential dangers,” she said.
She advised insurance professionals to ensure clients with pre-existing conditions declare them to their insurers.
“If a medical condition flares up unexpectedly while you’re travelling, it may not be covered if you have not declared it to your travel insurer. It is important to consider your insurer’s definition of a pre-existing medical condition and pay any additional premium required to ensure you’re adequately covered,” she said.
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