Stranded in Bali, would your travel insurance cover you?

The choking ash cloud caused by the eruption of Mount Raung drifted toward Ngurah Rai International Airport in Bali, causing visibility issues that forced the closure of the airport. This caused chaos for those without travel insurance as flights were cancelled forcing thousand of travellers to look for last minute accommodation as they waited for alternative flights to get them home after school holidays.

While most comprehensive insurance policies will cover out of pocket expenses caused by the delays, unfortunately many travel insurance policies do not include expenses resulting from natural causes, like a volcano or earthquake. Worse still, it is estimated up to 25 per cent of travellers stranded in Bali did not take out travel insurance policies.

When travelling, you never know when something unforeseen might occur, as was the case in Bali, and one of the most important things you can do when planning a trip, is to purchase a comprehensive travel insurance policy. When you travel it is best to take the hard copy policy and record details of the policy number and emergency assistance number in your phone or better still, download the App or claim form, just in case. It is imperative to check the policy fine print in order to avoid a possible claim being rejected.

But when is the best time to purchase travel insurance I hear you ask? As soon as you have booked and finalised your trip. Make sure the policy covers any high risk activities you are planning, like diving, skiing, full replacement of your luggage, the destinations you will be visiting, pre-existing medical conditions, any valuables, like jewellery, laptops, camera gear.

I have listed some common travel insurance claims and how to minimise them.

Lost, delayed, damaged or stolen luggage

When waiting for your luggage at the airport carousel it is common to feel anxious fearing it may not actually arrive. When travelling there are few things as frustrating as arriving at your destination without your luggage. Firstly, make sure you label your luggage and remove any old destination tags to prevent confusion for the baggage handlers. Take a list of what you have packed, taking a photo of both your list and luggage on your phone. This is the best way to quickly describe your luggage if it goes missing, as they say a photo speaks a thousand words, something I can’t do in any foreign country. To identify your luggage quickly and avoid the confusion of someone taking off with your case, get something unique to quickly identify your case. Better than a bright luggage strap, suitcase covers like Loqi are ideal.  Not only do they look colourful making your luggage easy to identify, they are water resistant and protect your luggage, keeping it clean and reducing damage.

Avoid arriving to check in last minute, if you check your luggage early it reduces the chances of the baggage not making the flight. After landing get to the baggage collection carousel as soon as you can to avoid the chance of it wandering off without you. However, if the inevitable does occur, report it immediately and get a written report as you will need this for an insurance claim. You can claim the loss of your camera, but will never be able to replace the photos you have taken so I advise to always take photo of your name, contact details and email address; if your camera is lost you just may get card returned with all your treasured travel memories.

Medical Claims

It could be from eating the wrong food, or a trip, fall or accident of some kind, but there is a strong chance you might get sick or injure yourself when travelling. This can lead to extremely high medical costs that can eat into your travel budget. To reduce the risk, research the area you are travelling, check what diseases you may be exposing yourself to, check you can drink the water, read about any foods to avoid and check with your Doctor about any vaccinations they recommend for the area you are going to. Smart Traveller has some great information on health risks when travelling. If you have a medical condition ensure you take adequate supply of medication and a letter from your Doctor stating why it is needed. Pack medication in original packaging (I flat pack the packets) and take a prescription with you. I carry half my medication with the prescription in my carry on and the remaining in my checked luggage if a longer trip.

Check the requirements for the country you are travelling, as some have restrictions on quantity and specific medications. For further information for Australians check out the Medicare website. Before you travel check your policy to see what you’re covered for or you could be in for a huge medical bill. Check the process, do you have to pay up front, does the policy cover for prepaid tours you are unable to attend if you get novo virus on a cruiseship, do you have to use an authorised medical centre, do you need prior consent over a certain value? These are all questions you should be confident you know the answers to before you travel.

Lost or stolen money and credit cards

The last place you’d want to be caught without money is in a foreign country and one of the biggest problems for travellers is pick pocketing. Plan how you intend to keep your money safe before you arrive in an area known to be of concern. Never carry your cards and cash together, utilise the hotel safe, have your wits about you or avoid high risk areas, zip up pockets on bags and take a photo of credit cards in case of loss or theft. Some insurance policies offer really good assistance with regard to cash and credit card replacement, so check out the details carefully when purchasing a policy. Also check the requirements of your bank or Credit Card Company before leaving and know the process in case cards are lost or stolen. Have emergency numbers stored in your phone and with your travel documents for use, if required.  Again, read about the risks for the area you area travelling and known location and tricks the pick pockets and scammers might use to distract you.

Travel delays and cancelled flights

Unplanned delays and changes can eat into your travel money when faced with unexpected hotel accommodation and meals. There is not much you can do to prevent flights being cancelled, like those stranded in Bali with the volcanic ash, but you may be able to lessen the inconvenience. Firstly, remember the airlines generally only cancel flights for safety reasons and many are beyond their control. Please be courteous, losing your cool won’t solve the situation and can delay a solution.  Contact the airline a few days prior and then again on the day of departure to check for any last minute changes or cancellations. Arrive for check in early to avoid missing your scheduled flight. Flying midweek can reduce risk of delays as can obeying baggage restrictions to avoid last minute repacking. Keep all receipts for out of pocket expenses like meals and accommodation that may be claimed. Lastly, check the policy before you purchase. Travellers can generally only expect to claim for additional expenses resulting from flight delays and cancellations caused by ash cloud or other natural disasters if a comprehensive policy is purchased. Basic travel insurance does not cover this and is usually priced accordingly. Check any policy that may be included from credit card purchases of air travel as they usually only provide a basic policy and cover is often for the credit card holder, not the entire family.

If you can’t afford the premium, you may be best to reassess your travel budget to ensure you can afford to travel. Insurance is a necessity and I would not suggest you try and save money by doing without, as it is a huge gamble to travel uninsured. When you look at your home, vehicle, etc, generally we insure to cover unexpected losses, but still many tend to overlook the real value in comprehensive travel insurance. Again, I can’t stress enough to think carefully about the activities you plan doing and check that these will be covered in the policy you have purchased. Read the fine print and spend a few dollars more for peace of mind to know if something goes wrong on your diving trip, that you will be covered to fly home in a decompression tank if required.

If you do need to make a travel insurance claim, know the 24 hour helpline phone number, be honest, disclose everything, especially pre-existing conditions, understand the exclusions of your policy, detail your claim as much as possible, be courteous and keep all receipts and police reports to verify your claim.

More than 10,000 Australian travellers were stranded and had their holiday plans in tatters after disruptions due to ash cloud over Bali from the East Javanese Mount Raung eruption on June 24 and again July 2. Denpasar airport, 150km away was closed along with nearby Lombok as the emitting plumes of ash could choke jet engines. Virgin, Jetstar, Garuda and AirAsia axed over 300 flights and as tensions rose amid the closures, some people were advised they may not arrive home for several weeks. Forecasters advise there would be at least 20,000 travel insurance claims worth at least $15 million and airlines are expected to be out of pocket $5 million according to industry insiders.

Can you really afford to travel without comprehensive travel insurance?

Volcano ash causes delayed and cancelled flights more than you realise. In May 2010, January 2011, May and June 2011, June 2014, July and August 2015, September, November and December 2015, July, August and September 2016 there were flights cancelled in Europe, Chile, France, Cape Town, Britain, Iceland, New Zealand and Bali.

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