Travel insurance can protect you from most things while you're travelling but there are general exclusions that most Australian travel insurers won't cover. It's no secret, and they will always be outlined in the product disclosure statement (PDS).
When am I not covered by travel insurance?
This can be a bit hard to answer since claims can be denied and approved based on specific circumstances. Here are some examples of where you might not be covered.
If you can get your money back from another entity.
Travel insurance won't reimburse money that can be refunded. As an example, if you had to cancel your flights, the airline might only charge a 50% cancellation fee and refund the rest, so your policy will only cover the other half that you lost.
If you've drunk alcohol or are under the influence of drugs.
When it comes to alcohol, there are some insurers who will straight up deny any related claims, other insurers may assess your level of intoxication before they agree to cover you. Either way, the ball is in their court if you have a few too many drinks and end up suffering a loss. As for recreational drugs, you're definitely not covered.
The purpose of travel insurance is to protect you financially from the unexpected while you're travelling. If an insurer finds that your claim had arose from something avoidable your claim can be denied. Did you know that your claim can be denied if you don't store your valuables in a safe when you stay in a hotel and they are stolen? This would be considered a loss that was avoidable.
If you don't disclose pre-existing conditions.
Getting cover for a pre-existing medical condition can be costly (depending on your condition), which is why some people can be tempted to not add on the extra cover to their policy. Whether this was done intentionally or not, if anything happened to you or your travel companion that is traced back to a pre-existing condition, your policy can be made void.
With this one, you really want to check your PDS to make sure you follow the rules stipulated by the insurer. Travel insurance companies vary quite a lot when it comes to when they will cover you if you suffer a loss associated with riding a motorcycle or scooter. Almost all insurers will only cover you if you have an Australian motorcycle license or the correct local permits. Policies will also have a limit on engine sizes and insist that drivers and pillions wear helmets.
If you take part in extreme sports and activities.
Snowsports and trekking are often not included when taking out travel insurance because they are high risk activities. You can usually take out extra cover while applying online, you'll just have to pay more for it. If you don't do this, you obviously won't be covered if you get hurt.
When it comes to your luggage there are a few scenarios. If your luggage is lost by an airline, it will be their responsibility to reimburse you. If you leave your luggage unattended, that's considered avoidable and your claim might be denied.
Terrorism is on the minds of many travellers when they head overseas. Whether or not you'll have a claim honoured that is the result of a terrorist act will depend on your insurer. Many insurers will cover you for medical claims, while some will cover evacuation and less still will cover loss of income or cancellation as a result of terrorist actions. Similarly, you won't have cover if you've travelled to a country against a governmental warning or advisory.
If your trip is affected by a natural disaster or known event.
If a natural disaster occurs and you haven't bought your travel insurance policy, unfortunately you won't be covered for any related claims since you purchased the policy after it has become a known event. Also, most insurers will not cover expenses if you choose to cancel your trip because you're worried about a natural disaster happening. You will only be covered if there is a government-issued warning and you have bought your policy before it became a known event.
General benefits have exclusions as well, these exclusions protect insurers from those who are intentionally adding risk to their trip.
This portion of your policy provides cover for 24-hour emergency medical assistance, ambulance, hospital guarantees, messages to family, medical evacuations and funeral arrangements.
Common exclusions include the following:
No cover if you do not promptly follow the medical advice of the insurer's emergency medical assistance provider.
No cover for medical evacuation, funeral services, cremation or bringing your remains back to Australia if you do not get prior approval from the insurer before incurring expenses.
No cover for subsequent medical, hospital or evacuation expenses .
No cover for medical evacuation or the transportation of your remains from Australia to an overseas country.
This portion of your policy covers emergency medical or dental treatment and hospital expenses incurred on the advice of a medical adviser.
Common exclusions include the following:
No cover if you fail to follow the advice of the insurer's emergency medical assistance provider.
No cover for incurred expenses without getting prior approval.
No cover if you receive treatment under a Reciprocal Health Care Agreement
No cover if the expenses you incurred are the result of an undisclosed pre-existing medical condition.
No cover for damage to bridges, crowns dentures and dental prostheses.
No cover for dental treatment involving the use of precious metals or for cosmetic dentistry.
This portion of your policy covers additional expenses incurred if you are injured on your trip and a medical adviser either certifies you unfit to travel or advises you to return to Australia. It also covers disrupted journeys due to strikes, riots, hijackings, accidents, weather, natural disasters, loss of travel documents and destruction of your home in Australia.
Common exclusions include the following:
No cover if you had prior knowledge that your journey would be disrupted.
No cover if your additional travel and accommodation expenses are recoverable by other means.
No cover if your transport or accommodation provider becomes insolvent.
No cover if you or your travel partner simply change travel plans.
No cover for cancellations, delays, rescheduling or diversions to your scheduled or connecting transport except for situations listed in your PDS, such as strikes.
No cover if you're in breach of the rental agreement when driving a rental vehicle.
This portion of your policy reimburses you for expenses incurred by you if your travelling companion or a relative dies unexpectedly during your journey or becomes hospitalised due to illness or injury.
Common exclusions include the following:
No cover if you had prior knowledge that such an incident would occur.
No cover if the illness, injury or death was the result of a pre-existing medical condition.
No cover if you are able to seek compensation from any other source.
No cover if the claim arises as a result of you or your travelling companion changing travel plans.
This portion of your policy reimburses you for additional expenses incurred as a result of you or your travelling companion becoming ill or injured during your trip and being certified unfit to travel by a medical adviser.
Common exclusions include the following:
No cover if you had prior knowledge of such an event.
No cover if you are able to claim compensation from another source.
No cover for reckless use of a rental vehicle.
No cover if your travel companion changes travel plans.
This portion of your policy reimburses you for airfares so you can return to the place where your trip was disrupted and resume your journey following the death or hospitalisation of a relative.
Common exclusions include the following:
No cover if you resume your journey more than 12 months after returning to Australia.
No cover if you had prior knowledge of the likely disruption.
No cover if you are able to claim your journey resumption expenses from another source.
No cover if the cause of the disruption was the death, injury or sickness of a relative with a pre-existing condition not covered by the policy.
This portion of your policy pays you a daily benefit to cover incidentals while you are hospitalised overseas.
Common exclusions include the following:
No payment for a predetermined period of time at the beginning of your hospitalisation.
No payment if you are ineligible to claim for overseas emergency and hospital expenses.
This portion of your policy pays a benefit to your estate if you are injured during your journey and die because of that injury or if you are presumed dead as a result of an accident involving your transport carrier.
Common exclusions include the following:
No payment if you die more than 12 months after being injured on your journey.
This portion of your policy pays you a benefit if you are injured during your journey and you become permanently disabled (lose the sight of an eye or use of a limb) because of that injury.
Common exclusions include the following:
No payment if you become disabled more than 12 months after receiving your injury.
No payment if your disability is not deemed to be permanent by your insurer's medical advisers.
This portion of your policy provides a weekly benefit for a specified period if you are disabled due to an injury sustained on your journey and lose all your income because you are unable to work.
Common exclusions include the following:
No payment for the first 30 days of disablement.
No payment for the loss of income of your dependents.
This portion of your policy reimburses you for the costs associated with replacing your credit cards if they are lost, stolen or fraudulently used.
Common exclusions include the following:
No cover if you don't report the incident within 24 hours and obtain a written statement from the police and your bank.
Payment will only include the amount not covered by your bank or credit card provider.
This portion of your policy reimburses you for the cost of replacing lost or stolen travel documents, including passports and traveller's cheques.
Common exclusions include the following:
No payment unless you report the incident within 24 hours and obtain statements from police and your bank.
Payment only for losses not covered by your bank or issuing company.
Theft Of Cash, Bank Notes, Currency Notes, Postal Orders or Money Orders
This portion of your policy pays you for stolen cash, bank notes, currency notes, postal orders or money orders.
Common exclusions include the following:
No payment if not reported within 24 hours and statements obtained.
No payment if the items were not on your person when stolen.
This portion of your policy pays the calculated value or cost of repairs of lost, stolen or accidentally damaged luggage and personal items.
Common exclusions include the following:
No cover for items left unattended in a motor vehicle outside of daylight hours or not in a concealed storage compartment.
No cover for losses unless reported within 24 hours and statements obtained from police or transport authorities.
No cover for items checked in as cargo rather than as carry-on luggage.
No cover for items of a negotiable nature such as cash, bank notes, currency notes and cheques.
No cover for loss, theft or damage to bicycles.
No cover for items left behind in accommodation or transport.
No cover for loss, theft or damage of watercraft (apart from surfboards).
No cover for items sent unaccompanied or under a freight contract.
No cover for loss or damage resulting from cleaning, repairs or alterations.
No cover for loss or damage due to wear and tear, deterioration, weather, insects or vermin.
No cover for items left unsupervised in a public place.
No cover for loss or damage due to electrical or mechanical breakdown.
No cover for items that are fragile or brittle or have an electronic component that is broken or scratched.
No cover for loss, theft or damage where you are entitled to compensation from another source, such as a transport carrier.
No cover for loss or damage to sporting equipment while in use (including surfboards).
This portion of your policy pays your cancellation fees and lost deposits for prepaid travel and accommodation arrangements due to unforeseen circumstances beyond your control.
Common exclusions include the following:
No cover if for an incident you were aware of before your cover commenced.
No cover for the injury, illness or death of a relative with a pre-existing medical condition.
No cover if uou or your travelling companion change travel plans.
No cover for unforeseen business, financial or contractual obligations.
No cover if a tour operator or wholesaler cancels due to insufficient numbers.
No cover for travel delays or rescheduling by a carrier.
No cover for losses due to the financial collapse of a transport, tour or accommodation provider.
No cover for the mechanical breakdown of your transport.
No cover for an act or threat of terrorism
No cover if your employer cancels your pre-arranged leave (unless you are a full-time member of the Australian Defence Force or emergency services).
This portion of your policy reimburses you for the cost of additional meals and accommodation if your journey is disrupted for at least six hours due to circumstances beyond your control.
Common exclusions include the following:
No cover for losses due to the insolvency of a transport, tour or accommodation provider.
No cover for losses due to an act or threat of terrorism.
No cover if you are entitled to claim your expenses from another source.
This portion of your policy pays your additional travel expenses so you can attend a special event such as a wedding, funeral, conference, sporting event or prepaid tour if your scheduled transport is cancelled or delayed.
Common exclusions include the following:
No cover if the cancellation or delay is due to the insolvency of a transport, tour or accommodation provider.
No cover if the claim is related to an act or threat of terrorism.
This portion of your policy covers your liability for legal expenses and payment of compensation for accidental death or injury of a third party or loss or damage to their property.
Common exclusions include the following:
No cover for claims related to death, injury or property damage incurred by you, your travelling companion, a relative or employee.
No cover for claims related to the use of a firearm, aerial device, watercraft or motorised vehicle.
No cover for claims related to the operation of a business, profession, trade or occupation.
No cover for loss, damage or expenses covered by an insurance policy or compensation scheme.
No cover for fines, penalties or aggravated, punitive, exemplary or liquidated damages.
No cover for a disease transmitted by you.
No cover for claims that arise due to a contract that imposes an additional liability on you.
No cover for claims that arise due to assault or battery committed by you or at your direction.
No cover for claims that arise due to reckless conduct by you intended to cause injury, property damage or liability.
This portion of your policy reimburses you for housekeeping services that you are unable to perform if you become disabled due to an injury on your journey and the disablement continues after your return to Australia.
Common exclusions include the following:
No payment unless you have a medical certificate confirming your disablement and ongoing need for housekeeping services.
This portion of your policy pays the insurance excess or liability fee you are required to pay if your rental vehicle is stolen or damaged in an accident.
Common exclusions include the following:
No cover if you were operating the rental vehicle in violation of the rental agreement.
No cover if you were under the influence of drugs or alcohol.
No cover if you were driving without an appropriate licence.
Now you know what's not covered, compare travel insurance policies today
Jessica Prasida is a travel insurance expert for Finder. She lives and breathes travel, having worked as a travel agent and branch manager at STA Travel for over 4 years, then writing about travel insurance with Finder for another 5 years. Jess has a Bachelor of Business from the University of Technology, Sydney and a Tier 1 General Insurance qualification.
Guide to high-risk travel insurance: What is and isn't covered.
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