Don’t Travel Without Insurance for Business or Leisure

As spring arrives, Australians are eager to embark on their travel adventures, both domestically and abroad; for business, leisure or both – often known as ‘bleisure’.

According to the Australian Bureau of Statistics, Aussies made 12% more trips in May 2024, compared to the same time last year. While figures haven’t returned to pre-pandemic levels, Skyscanner says we plan to take the same number or more trips abroad this year compared to 2023.

With this surge in travel, ensuring adequate protection against unforeseen accidents, damage, or loss is essential. This is where travel insurance comes into play, offering peace of mind and financial security.

Importance of Travel Insurance

Travel insurance offers vital protection for medical emergencies, trip cancellations, and lost belongings. It’s as essential as a passport for any journey, safeguarding against significant financial burdens and complications.

For instance, as recent ABC News Online report highlighted a traveller’s 18-month ordeal recovering his lost luggage and secure compensation. Travel insurance could have alleviated much of this stress and hassle.

Alcohol Consumption and Travel Insurance

Recent insurance industry survey findings shed light on the relationships between alcohol consumption and travel insurance among Australians:

69% of those who took out travel insurance consumed alcohol during their trip

40% were aware that alcohol consumption requirements vary between insurers, and

55% of those who drank and had insurance were unsure how their policy treated alcohol-related incidents.

Many travel insurance policies exclude claims involving high blood alcohol levels, often exceeding 0.19%. Understanding these exclusions is vital.

But, even if you’re thinking to minimise your alcoholic drinking, being in the cabin of a plane can amplify the effects of the alcohol. That’s partly due to cabin pressure lowering  your blood oxygen level, so even though your BAL may not be high, you could feel intoxicated. Another study suggests cabin pressure and alcohol consumption can strain the cardiac system.

Survey Findings on Travel Insurance Coverage

While 87% of Australians purchased travel insurance for their last trip, 13% travelled without it.

Common misconceptions preventing insurance purchases include:

• Belief that safe countries don’t require having insurance
• Assumption the Australian government will cover overseas cover medical expenses abroad
• Thinking that insurance is only needed for extreme sports
• Perceiving travel insurance as too expensive or only for international trips, or
• Assuming household insurance provides sufficient coverage.

Younger Australians, low-income households, and those from culturally and linguistically diverse backgrounds were more likely to opt to be uninsured. This underscores the need for increased awareness and education about the importance of travel insurance.

Quotes and Expert Opinions

Andrew Hall, CEO of the Insurance Council of Australia (ICA), highlights the need for travel insurance and understanding policy coverage. He advises ensuring coverage for planned activities and stresses the importance of reading policy documents thoroughly.

Tips for Choosing the Right Travel Insurance

Travellers should:

Appreciate there are many options for coverage

Ask questions, such as of us, your broker or adviser, to find suitable coverage

Consider your specific needs, such as coverage for alcohol-related incidents and adventure activities, and

Pay attention to specific exclusions in policies.

We can help demystify the fine print and customise policies to you needs and time frames. Sometimes your industry or professional association offers an insurance policy, but make sure you’re not compromising on exactly what you need.

Practical Steps for Travellers

To ensure proper insurance coverage, travellers should:

• Read and understand policy documents – we can help with that
• Verify coverage for planned activities, including alcohol consumption
• Compare the policy options we tailor to your needs
• Ask questions to clarify any doubts about coverage, and
• Ensure the policy aligns with personal travel plans and risk factors.

Be sure to reach out to us as your broker or adviser to discuss specific needs and concerns. We can help travellers make informed decisions.

123 Insurance Pty Ltd ABN 67 621 727 722 ATF for 123 Insurance Unit Trust ABN 46 332 885 229 trading as Bell Partners Insurance is an authorised representative 1259573 of Insurance House Pty Ltd ABN 33 006 500 072 AFSL 240954.
This advice has been prepared without taking into account your personal objectives, financial situation or needs. You should therefore consider the appropriateness of the advice, in light of your objectives, financial situation or needs before following the advice. Please obtain a copy of, and consider the Product Disclosure Statement applicable to the general insurance product before making any decision.