Travel Insurance

Why do you need travel insurance

Travelers who are not covered by insurance are personally liable for covering incurred medical and associated costs. As a result, families have been forced to sell off assets, including their superannuation or family homes, to bring loved ones back to home for treatment.

Read tips on buying travel insurance 

Reasons to buy travel insurance (from MSNBC)
1. Your flight has been canceled.
2. Your bags are lost and your medication is in it. You need to have an emergency prescription filled.
3. Your passport and wallet are stolen, and you need emergency cash and a replacement passport.
4. You're involved in an accident and adequate medical treatment is not available. You need medical evacuation.
5. You need to cancel your trip due to illness.
6. Your cruise line, airline or tour operator goes bankrupt. You need your non-refundable expenses covered and to get to your destination.
7. You have a medical emergency in a foreign country.
8. A terrorist incident occurs in the city where you’re planning to visit and you want to cancel your trip.
9. A hurricane forces you to evacuate your resort, hotel or cruise.

Travel insurance Tips

Take out appropriate travel insurance to cover hospital treatment, medical evacuation and any activities, including adventure sports, in which you plan to participate.

Make sure it covers replacement cost of your personal possessions, including money and documents – your policy will specify limits 

If you have to cut short or cancel your trip, as you may be liable to pay the full cost or part of the cost if you cancel 

Offers 24-hour emergency assistance – some insurance companies offer an around-the-clock helpline in case you have a serious problem 

Tips for Traveling outside of the country

If an American citizen becomes seriously ill or injured abroad, a U. S. consular officer can assist in locating appropriate medical services and informing family or friends. If necessary, a consular officer can also assist in the transfer of funds from the United States. However, payment of hospital and other expenses is the responsibility of the traveler.
Before going abroad, learn what medical services your health insurance will cover overseas.

Make sure you are prepared by reading the travel emergency checklist 

If your health insurance policy provides coverage outside the United States, REMEMBER to carry both your insurance policy identity card as proof of such insurance and a claim form. Although many health insurance companies will pay "customary and reasonable" hospital costs abroad, very few will pay for your medical evacuation back to the United States. Medical evacuation can easily cost $10,000 and up, depending on your location and medical condition.

THE SOCIAL SECURITY MEDICARE PROGRAM DOES NOT PROVIDE COVERAGE FOR HOSPITAL OR MEDICAL COSTS OUTSIDE THE U.S.A.

Senior citizens may wish to contact the American Association of Retired Persons for information about foreign medical care coverage with Medicare supplement plans.

To facilitate identification in case of an accident, complete the information page on the inside of your passport providing the name, address and telephone number of someone to be contacted in an emergency.

A traveler going abroad with any pre-existing medical problems should carry a letter from the attending physician, describing the medical condition and any prescription medications, including the generic name of prescribed drugs. Any medications being carried overseas should be left in their original containers and be clearly labeled. Travelers should check with the foreign embassy of the country they are visiting to make sure any required medications are not considered to be illegal narcotics.

More travel advice available here 

The Centers for Disease Control and Prevention (CDC) maintains a travelers' health web page at http://wwwn.cdc.gov/travel/default.aspx .  For information about outbreaks of infectious diseases abroad, consult the World Health Organization’s (WHO) web site at http://www.who.int/en. 

U.S. embassies and consulates abroad maintain lists of hospitals and physicians. You can visit U.S. Embassy and Consulate web sites around the world at http://usembassy.state.gov/.

Some countries require foreign visitors to have inoculations or medical tests before entering. Before traveling, check the latest entry requirements with the foreign embassy of the country to be visited.

Click here for Emergency Information
Click here for lists of Doctors/Hospitals abroad.
Click here for the Avian Flu Fact Sheet.
Click here for Foot and Mouth Disease Fact Sheet
Click here for the Chemical/Biological Agents Fact Sheet
Click here for information on Responding to Radiological and Nuclear Incidents.
Centers for Disease Control and Prevention – General
Centers for Disease Control and Prevention – Traveler's Health
World Health Organization

Travel Insurance Case studies

Following are some examples of the kind of cases handled by the Department:

  1. In Bangkok a man was hit by a car while riding a motorcycle. He sustained a badly fractured leg and was admitted to the nearest local hospital. His wife was with him. He did not have any travel insurance, and so had no choice as to hospital or treatment. The hospital did not have the expertise to do anything for him except clean the wound. After 3 weeks his wife asked the Embassy for assistance as parts of the shin bone had died and the fractured ends were not healing. The Embassy assisted in having the man medically evacuated to Australia for admission to hospital, at very considerable expense to his family.

  2. In Bali, 5 Australians were injured in a mini-van accident. Consular assistance was limited to support and routine contact with next-of-kin (NOK), as all the Australians involved had travel insurance. The travel insurance company paid their hospital bills and arranged their medical evacuation to Australia.

  3. A young man worked in a US ski resort for four months, then took time off to travel around the US. He permitted his 12-month travel insurance policy to expire just a few days before his departure for home. He was hit by a car while crossing a road and suffered serious head injuries. He was admitted unconscious to intensive care and required highly intensive sophisticated care until he was able to be flown back to Australia. He was still unconscious and returned on a stretcher. The cost to the family for the medical evacuation alone was $80,000. They have taken out a second mortgage on their house to raise the funds.

  4. A young Australian surfer went to the United States for a surfing competition. Although an experienced surfer, he unfortunately chose the wrong wave during a practice session. The wave dumped him on a reef and he sustained serious injuries. He was flown to a local hospital and immediately underwent two major operations. The hospital bill was AUD290, 000. Fortunately the young man's parents had insisted he take out travel insurance before he left Australia. The insurance company covered the bill, and the young man and his family were able to focus on his recovery.

All case studies are from www.smartraveller.go.au

Click here for more travel insurance resources