Tag: travel insurance estimate

Can you mix alcohol with travel insurance?

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Can you mix alcohol with travel insurance?


Can you mix alcohol with travel insurance? | Insurance Business Australia















Insurance boss addresses queries on consumption limits

Can you mix alcohol with travel insurance?

Travel

By Roxanne Libatique

The majority of Australian travellers, approximately 70%, have expressed uncertainty about the extent to which travel insurance covers incidents associated with drinking alcohol while overseas, according to a study by Compare Travel Insurance.

This ambiguity has come into sharper focus following a year in which several Australians encountered denials on their insurance claims due to incidents linked to alcohol consumption.

Denial of travel insurance claim related to alcohol consumption

The survey’s backdrop includes high-profile cases such as that of Ella Cutler, who faced a denial of her travel insurance claim following an accident in Croatia that resulted in medical and air ambulance expenses surpassing $400,000.

Another example comes from Kylee Enwright, from New South Wales, who suffered head injuries after a fall in Thailand. Her claim was similarly denied due to her intoxication levels; Enwright tragically died a few weeks after her return to Australia.

Why it’s important to familiarize with insurance policy’s fine print

Natalie Ball, director at Comparetravelinsurance.com.au, highlighted the need for travelers to familiarize themselves with their insurance policy’s fine print, particularly clauses relating to alcohol consumption.

“It’s devastating to hear of these accidents happening to Australians overseas. And shocking that our survey results show that so many Australians are unclear as to whether travel insurance covers you when you are intoxicated,” she said. “It’s important for travelers to understand that having a glass of wine with dinner or a Pina Colada by the pool is unlikely to be seen in the same light as consuming seven beers or several cocktails. It is the intoxication levels that may have an impact on your cover.”

Alcohol consumption limits within context of insurance coverage

Addressing queries on alcohol consumption limits within the context of insurance coverage, Ball stated that it hinges on whether alcohol consumption is deemed a contributing factor to the incident.

“The number of drinks you can safely consume is subjective due to factors such as the size of the pour, the percentage of alcohol, and your individual tolerance,” she said. “Insurers usually consider your individual circumstances and whether alcohol is a contributing factor to the event. If alcohol is found to have impaired your judgment, coverage is likely to be impacted. On the other hand, if you were intoxicated, but your blood alcohol levels were not found to contribute to your claim, you would likely be covered.”

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Air Vanuatu liquidation exposes insurance coverage gaps

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Air Vanuatu liquidation exposes insurance coverage gaps


Air Vanuatu liquidation exposes insurance coverage gaps | Insurance Business Australia















Thousands of travelers left stranded, facing financial losses

Air Vanuatu liquidation exposes insurance coverage gaps

Travel

By Roxanne Libatique

Air Vanuatu’s unexpected decision to enter voluntary liquidation has left thousands of travelers stranded and facing significant financial losses due to widespread flight cancellations.

A spokesperson from the Department of Foreign Affairs and Trade (DFAT) has advised Australians to reach out to their travel agents or travel insurance providers. Consumer experts, however, warn that only a few travel insurance policies cover such insolvency events.

Australian travel insurers that cover airline insolvency

Natalie Ball, director of Compare Travel Insurance, indicated that travelers impacted by Air Vanuatu’s liquidation might be able to claim expenses through their travel insurance.

“In the event that an airline has entered voluntary administration, only a handful of travel insurers provide reimbursement for lost trip costs. This benefit usually only applies to comprehensive policies and claims would be assessed on an individual basis,” she said.

She highlighted that not all travel insurers provide coverage for insolvency or financial collapse, stressing that customers need an active policy before the event to be eligible for claims.

Compare Travel Insurance highlighted insurers that cover airline insolvency:

  • Cover-More offers up to $10,000 for rearrangement or cancellation due to insolvency of a travel services provider (applicable to comprehensive policies only);

  • Go Insurance providers up to $1,500 for trip cancellation or amendment due to financial default of a travel service provider (for Go Plus policies only);

  • Travel Insurance covers up to $5,000 for the insolvency of a booked travel carrier (applicable to Deluxe policies only); and

  • World2Cover assists up to $3,000 per adult if the travel services provider, excluding agents and operators, suffers financial default.

How to mitigate travel insolvency risks

Ball advised travelers to thoroughly research travel insurance providers to avoid potential risks.

“Make sure you know what you’re covered for and ensure you’re up to date on what you’re entitled to as a consumer. Always choose reputable travel providers and consider booking your trip through a travel agent – ​​they may be able to issue you with a refund under these circumstances,” she said.

Using a credit card for travel bookings might also offer additional protection, according to Ball.

“If you aren’t covered by insurance, you could be entitled to a ‘chargeback’ through your credit card company if you pay for a service and don’t end up receiving the product or service. Keep in mind that you would have to have paid for most of your trip via your credit card to be eligible,” she said.

She further emphasized that travel insurance generally excludes coverage for the insolvency of travel agents but can be crucial for airline insolvency.

“Travel insurance generally excludes coverage for the collapse of a travel agent. However, in the case of airline insolvency, travel insurance can be a life saver. “We highly recommend securing travel insurance before any trip as a preventive measure,” she said.

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