SCTI highlights high costs of skipping travel insurance

SCTI highlights high costs of skipping travel insurance | Insurance Business Australia

Travel

Report reveals consequences of minor mishaps

Travel

By
Roxanne Libatique

As living expenses soar, some Australians may consider skipping travel insurance to cut costs, but Southern Cross Travel Insurance (SCTI) warns against such decisions, pointing out the steep financial risks of mishaps while traveling.

The SCTI Future of Travel 2024 report revealed that around 2.4 million Australians may opt out of travel insurance as a financial compromise.

However, SCTI cautions that minor accidents, such as slips and falls, could result in massive medical bills, particularly in countries where healthcare is costly. Moreover, losing luggage can lead to substantial unexpected expenses.

Minor mishaps that could cost thousands in travel insurance claims

SCTI records showed that minor mishaps can lead to significant financial losses. For instance, a 14-year-old’s slip by a hot tub in the USA led to a claim of $120,000, and another case saw a traveller incur $160,000 in costs for a hip injury in Fiji.

SCTI CEO Jo McCauley (pictured) highlighted the underestimated risks associated with travel incidents.

“Many Australian travellers underestimate the potential costs associated with common travel mishaps. From minor medical incidents to lost luggage, the expenses can quickly add up, leaving travellers in a precarious financial situation. Investing in travel insurance is a simple yet crucial step in safeguarding against these unforeseen expenses,” she said.

Claims from SCTI include diverse incidents: a 94-year-old needed an air ambulance from Fiji costing $160,000, and a surfing accident in Mexico led to medical costs of $79,500 for a 36-year-old. A severe accident in Indonesia involving a moped taxi resulted in a $73,000 claim.

Additionally, SCTI documented significant claims for baggage loss and trip cancellations, such as a $7,000 payout for a trip cancelled due to a medical emergency and a $5,000 claim for stolen luggage.