As a freelancer, how is my loss of income calculated?

For freelancers or self-employed individuals, insurers will typically require proof of your regular income prior to your injury. This might include tax returns, Business Activity Statements (BAS), invoices, or bank statements over a specific period. The benefit amount will be based on a verifiable average of your earnings, often up to a maximum weekly or monthly sum specified in your policy. You should carefully review the Product Disclosure Statement (PDS) for exact requirements.

What if I can only return to work part time after an injury?

Most loss of income benefits are designed for total disablement, preventing you from performing your usual work. If you can return to work part-time or in a reduced capacity, your policy may not provide cover or may offer a reduced benefit. It is essential to check your policy’s PDS for specific details regarding partial disablement and how it impacts your eligibility for benefits.

Is there an excess or waiting period for loss of income benefits?

Yes, most policies include an initial waiting period, known as a deferred period or excess period. This means you will not receive payments for the first specified number of days after your disablement begins or after you were scheduled to return to work. This period can vary between insurers, typically ranging from 15 to 30 days.

Does loss of income cover pre-existing medical conditions?

Generally, no. Travel insurance policies typically exclude claims arising directly or indirectly from pre-existing medical conditions. This means if your inability to work stems from an injury that is a complication of, or related to, a pre-existing condition that was not declared and approved by your insurer, you would likely not be covered. Always disclose all pre-existing conditions when purchasing your policy.

What evidence do I need to provide for a loss of income claim?

To support a loss of income claim, you will typically need to provide extensive documentation. This includes medical reports from treating doctors confirming your disablement, employment details such as a letter from your employer or proof of self-employment income, and potentially Centrelink statements if applicable. You may also need police reports if the injury resulted from an incident, along with any other documents requested by your insurer to verify your claim.

Are mental health conditions covered under the loss of income benefit?

Most travel insurance policies explicitly exclude illness from loss of income cover, and this often extends to mental health conditions. While some comprehensive policies might offer limited cover for mental health–related medical emergencies during travel, this benefit typically does not apply to ongoing loss of income upon your return. Always check your policy’s PDS for specific exclusions regarding mental or psychological conditions.