Many of us take out travel insurance policies without ever checking what is actually covered, only to be unpleasantly surprised when a scooter accident in Bali is not covered for those who don’t hold an appropriate driving licence or who aren’t wearing helmets.
Similarly, many people assume that their comprehensive, and often expensive travel insurance, will compensate for insolvency.
As a letter writer to the ‘Tip-o-meter’ in Traveller on Sunday explained, it can be a costly oversight.
“I agree with ‘Bitter pills’ (Tip-o-meter January) regarding travel insurance and have a recent experience that everyone should be aware of. A year ago we booked a ‘Voyages of Discovery’ Singapore to Cape Town cruise and flights package.
“Concurrently we booked travel insurance with NRMA – our long-time insurers for travel, home, contents and two vehicles. After lengthy discussions and several calls with two NRMA representatives about the appropriate and highest level plans – the ‘International Comprehensive Plan’ was recommended.
“We agreed and paid the required total of $1700 over the phone. Confirmation documents, receipt and product disclosure were emailed subsequently, so we though all was good with ‘unlimited cancellation’ policy.
“Then the shock a month ago – the parent company Swan Hellenic – had gone into administration.
“Our subsequent claim for compensation for the $32,000 paid has been knocked back by NRMA and Cover-More Insurance because ‘insolvency’ was not covered (second last clause on page 45 of a 46 page document) – which we hadn’t picked up.
“ They are still refusing to refund anything. Lucky British citizens are covered by their government and member associations – not so in Australia.
“Our advice is to only insure with those companies that are open and upfront about the insolvency cover offered.”
– Dru Daly, Surfers Paradise, QLD