What should I look for in a travel insurance policy?
A good comprehensive travel insurance policy should cover the following: medical and additional expenses, cancellation, luggage and personal effects, travel documents, personal liability, return airfare, travel delay, emergency personal items, accidental death, resumption of journey, loss of income and rental vehicle excess. The level of cover for each area depends on the type of policy you choose. Some insurers offer special policies for certain circumstances such as cover for adventure sports, winter travel or long term travel. There are also special policies suited to different traveller types such as backpackers, students, families or corporate groups.

Why is it best to use an Australian Travel Insurance Company?
Medical claims from Australian hospitals can be handled immediately. Often hospitals won’t deal with overseas insurance funds and the insured will have to pay for treatment and services up-front and then arrange to be reimbursed by their overseas insurance company.

My credit card offers free travel insurance – why pay for more?
In many cases, the insurance offered is not comprehensive and may be limited to coverage for accidental death, flight accidents and car rental damage. Other possible expenses such as travel medical costs, evacuation expenses and trip cancellation charges may not be covered. Often only the individual cardholder is covered and not other family members. There may be conditions on the amount of travel that must be purchased on the credit card and limits on the claims that can be made. Travellers must carefully read the credit card travel insurance policy documents to determine the level of cover and conditions attached.

Is there an age limit on travel insurance?
Most travel insurance companies have an upper age limit on their policies. But insurers are aware of the fact that more and more of our older citizens enjoy international travel - and also that many are fitter than travellers half their age. There may be limits placed on travellers over 50, with cover ceasing at age 65, particularly with some of the budget priced travel insurance policies. Some travel insurers can provide cover for travellers aged over 65, subject to completion of a medical questionnaire, which details the customer's state of health.

How soon before my trip should I buy travel insurance?
It is recommended to buy travel insurance as soon as you have paid a deposit for a trip. Most travel insurance policies include cancellation cover. This covers you for loss of deposits and any cancellation fees and non-refundable payments for travel and accommodation, if you have to cancel before you depart on your trip. Check your policy for cancellation reasons covered – usually events such as death of a close relative, illness, accident, jury duty and redundancy.

What is an excess?
This is a set amount you will have to pay on any claim you make. This amount will normally be deducted from the payment the insurer makes to you when you have successfully made a claim. You need to check the policy information when choosing an insurer to determine the excess payable. Some insurers allow you to have the excess waived on payment of an extra fee.

Why is insurance for medical treatment important?
The costs for medical treatment for anyone in a country other than their own can be enormous. In your own country you are likely to be covered by government or private health insurance schemes, however, in a foreign country you will most likely be required to pay for any treatment received. Also, the cost of arranging a medical evacuation to your home country from anywhere in the world is a least $50,000.

What is a pre-existing medical condition?
This is a disease, illness, mental or physical condition that existed in the period before taking out the travel insurance policy. Any chronic or ongoing medical condition is included. You are required to disclose information about any pre-existing condition to the insurer and they will advise on a case by case basis, if they can cover claims arising from the pre-existing condition. Declaring this and any other relevant information is known as your duty of disclosure.

If you have a preexising medical condition, be careful in your choice of insurers. Some policies (including trip cancellation/ interruption) are restrictive in coverage of claims that are related to preexisting medical conditions within various periods prior to your trip. (They may be a good value for someone in good health - because of higher limits, more features and for lower costs). Some companies will cover problems related to preexisting medical conditions if that condition has been controlled during the period preceding the trip.

Look for the carefully worded section of the brochure entitled "Exlusions" or "Preexising conditions." The ground rules may be different for the health/ accident portion of the coverage and the trip cancellation/ interruption portion. "Controlled" usually is defined as "exhibting no symptoms or not requiring the adjustment of treatment or medication." Look for that word "controlled" in the text, if this is an area of concern for you or your traveling companion.

If you have been taking medications or have been treated by or have even seen a doctor for any medical condition within the previous six months, make sure that you get a policy that uses the "controlled condition" language.

Even then, a change in the prescribed dosage of your medication in the months before your trip would jeopardize your coverage for a related problem.

Don't be intimidated by "fine print"; most brochures clearly describe the principal details and exclusions. Take the time to read carefully before you sign up.

Does travel insurance cover pregnant travellers?
Most insurers can provide cover, however, you would need to check the policy wording for each insurer to determine that cover is available and what exclusions or limits there are for pregnant travellers.

Will my ipod, digital camera and video equipment be covered by travel insurance?
Yes, comprehensive insurance policies cover this equipment, however there is usually a maximum single amount allowed per item and a total valuables limit also. Some insurers may include these items of equipment under general personal belongings and so claims will be subject to maximum limits set for personal effects. You need to carefully check the policy wording and choose an insurer or plan with a level of cover appropriate to your needs. It is also worthwhile checking if valuable items such as these are covered under your existing home and contents insurance, even while being used overseas.

Am I covered in the event of an act of terrorism?
Most travel insurers have a general exclusion covering terrorist activity, however any cover for medical expenses or emergency repatriation may still be available if necessary. Some insurers will allow cancellation of a trip if a terrorist incident occurs in your home city or at your destination. The policy wording documents for each insurer will detail the availability of coverage for these events and the limits and exclusions applicable.

Can I take out a travel insurance policy once I am outside my home country?
This varies between insurance companies. Some require the insurance to be purchased in the traveller’s home country before departure and you may only be allowed to depart from and return to your own country. Others insurers allow you to purchase insurance during travel and you don’t even need to start and finish your travel in your country of residence.

What is an annual travel insurance policy?
This is a policy for frequent travellers such as backpackers or business travellers, where you can pay for a twelve month or longer period and can travel as many times as you wish during this time, to as many different countries as you want.

What is due care and attention?
Insurers may not pay a claim for loss of luggage or personal belongings if you do not pay due care and attention to your goods. This means never leaving your luggage and belongings unattended and never leaving them with someone you don’t know. This can also extend to leaving luggage and belongings in a rented car.

What is duty of disclosure?
The insurer has a right to ask various questions of the insured and the insured has a duty at law to give honest and complete answers and to disclose everything that the insurer may need to know about them before deciding to approve the insurance cover. The answers given by the insured must cover every person being included in the policy. If the insured is found to have breached the duty, the insurer may refuse to pay a claim, pay a reduced amount for a claim or cancel the policy.

How do I get help from my insurer while on my trip?
Your insurance company will provide you with a phone number to call from anywhere in the world when requiring assistance or making a claim. You must ensure you are familiar with this phone number and the procedure required to request assistance from your insurer.

What happens if I change my mind about the policy I have purchased?
Most insurance companies have a cooling off period of between 7 and 14 days after the issue of the policy. If you have not started your journey and do not need to make a claim, you will be refunded the full amount you have paid for the policy.

Does travel insurance cover me for adventure activities?
This varies from company to company. Some insurers don’t cover any kind of adventure activities, some cover certain activities at an extra cost and some specialist insurance companies cover many adventure activities under their standard policy. It is very important to carefully read policy information to determine what activities are covered and if planning to engage in adventure activities, ensure that you choose an appropriate insurer.