Kiwis leaving themselves exposed on trips to Australia

News release
23 December 2011

Kiwis leaving themselves exposed on trips to Australia

With airports filling up for the Christmas break, a new survey has found that some Kiwis believe travel insurance is not necessary for trips over the ditch.

An online survey of 2300 Kiwi travellers found that of those who travelled without insurance 55% did not believe it was necessary for the trip they were taking.

Travellers without insurance were more likely to be travelling to Australia, visiting friends or family, or be on journeys of a week or less.

Southern Cross Travel Insurance (SCTI) CEO Craig Morrison said the potential costs of becoming ill or injured abroad meant insurance should be a travel essential for every journey.

In the last year, the highest claim paid by SCTI for a New Zealand traveller in the Australia/South Pacific region was $85,000 for medical and evacuation expenses.

“Accidents do happen, and every year we see examples of the huge costs that can be clocked up. Even in countries with reciprocal healthcare arrangements such as the UK and Australia, you will still be liable for the cost of repatriation. So if you need to be flown home in a first class seat with medical assistance, or have a family member fly over to accompany you, the costs can quickly reach into the tens of thousands - not to mention any costs, such as air ambulance travel, that are not covered by those countries’ public health systems.”

Morrison said it was also essential that travellers declare any pre-existing conditions when taking out a policy, and obtain extra policy cover for them if necessary.

“If you’re ill, especially away from home, the absolute last thing you want to be worrying about is whether your policy covers you for the treatment or not”

The survey showed that of those that did purchase travel insurance, 44% waited until after booking travel. Morrison said a key piece of travel advice for the summer season was to always book insurance at the time of making the travel booking – or as soon as possible afterwards.

“More and more we are seeing travellers caught out when an unexpected weather or political event develops in the country they plan on travelling to. The basic principle behind travel insurance is to cover for the unexpected. This means you cannot get travel insurance to cover cancellation costs for an event that is already happening - so it’s important to buy travel cover as soon as you book your tickets.”

The survey was conducted by Colmar Brunton in October.

About Southern Cross Travel Insurance:
SCTI is a wholly-owned subsidiary of the Southern Cross Health Trust, which is part of the Southern Cross Healthcare Group family of businesses. Its web address is www.scti.co.nz.