Case Study: Travel Insurance for 1 week in Bali

So I've got a week of leave coming up and I wanted to take a relaxing holiday to Bali, Indonesia. This will be a slightly different holiday than I am used to. I'm usually heading for more adventurous locations and doing the whole backpacker thing but this is a chance to just to have a break and relax in the sun. I've bought some cheap airfares tickets from Jetstar (avoid their travel insurance) and booked my accommodation at Expedia. Got a great deal on a 4 star resort!

 

Now comes the tricky part. Buying travel insurance.

Jetstar offer travel insurance (which was selected by default) but I wanted to shop around so passed on that. There aren't any comparison websites that offer a wide selection of the major brands so I'll need to visit them individually.

 

First, lets work out what I need cover for:

- Medical and hospital is without doubt the most important. There have been many cases of people becoming sick or injured in Bali and it ranks as the most dangerous holiday location for Australians. Ideally I'll look for unlimited medical and repatriation (ie, getting flow home to an Australian hospital).

- Cancellation. I've only got a week for holidays so I don't want to risk it being ruined if the plane or accommodation is cancelled.

- Luggage. I'll be taking my HTC Android Smartphone ($800), iPad ($700) and Laptop ($1200) which I'd like to cover with travel insurance. Plus general cover for all my other baggage.

- Other things? Anything else is really just a bonus. I don't plan on renting a car or riding a scooter or motorcycle. No adventure sports are on the adgenda though I might do some kayaking and snorkeling.

 

Lets look at some travel insurance contenders

My trip details are: 1 week in Bali for a Single aged 30 years old.

Travel Insurance Direct
Cost: $39.00 ($63 with additional item cover)
Medical: Unlimited
Cancellation: Unlimited
Luggage: $12000 with per item limit of $700. Brings the cost to $63 to cover my laptop and phone.
Reviews of Travel Insurance Direct 

Worldcare
Cost: $33.30
Medical: Unlimited
 Cancellation: Unlimited
Luggage: $12000 with per item limit of $3000 for computers, $1000 for phones, and $750 for others.
Reviews of Worldcare Travel Insurance  

InsureandGo (Silver)
Cost: $45.15
Medical: Unlimited
Cancellation: $15,000
Luggage: $6000 with per item limit of $4000.
Reviews of InsureandGo

1Cover
Cost: $45.00
Medical: Unlimited
Cancellation: Unlimited
Luggage: $5000 with per item limit of $3000 for computers, $1000 for phones, and $750 for others. Reviews of 1Cover Travel Insurance  

iTrek Travel Insurance
Cost: $44.94
Medical: Unlimited
Cancellation: Unlimited
Luggage: $5000 with per item limit of $3000 for computers, $1000 for phones, and $750 for others. Reviews of iTrek Travel Insurance

 

Which travel insurance did I pick?

The stand out for me was Worldcare Travel Insurance. It was by far the cheapest and covered everything I could want and more. I was surprised that the item limits were so low on the Travel Insurance Direct policy and it costs a lot more than any other company to cover my laptop, phone, and tablet.

Remember to read the PDS and take your personal circumstances into account when buying travel insurance. This blog post is not financial advice but just my individual story.

No Travel Insurance in Bali - $45,000+ cost

You may have recently read about the Australian Nurse who, while holidaying in Lombok (Bali), drank a poisoned cocktail. She become very sick and had to be flown back to Australia at a cost of over $45,000. She has terrible injuries and may be permanently affected. This is a terrible incident that also highlights the need for travel insurance.

The travellers took all reasonable precautions and certainly weren't expecting to need medical assistance. They went to a reputable restaurant and ordered a local cocktail. Disaster can strike when you least expect and it is best to always be prepared. Travel Insurance doesn't have to be expensive and many companies offer a budget or medial only travel insurance plan that would have been great in this circumstance for paying the medical bills in Bali and medical evacuation back to Australia.

Make sure you take out travel insurance on your next international holiday. An Australian going to Bali for a week can pay as little as $23.54 for Bronze cover with iTrek Travel Insurance which covers unlimited Medical costs. With iTrek Platinum cover costs $46.01 and also has coverage for luggage, cancellations, theft of document or cash. An alternate travel insurance company is Worldcare Travel Insurance whom offer a Budget plan for $28 and comprehensive travel insurance for $47.


*Note - prices correct at time of publishing for 1 adult under 60 travelling to Bali from Australia for 1 week and is an Australian citizen.

Travel Insurance and Civil Unrest in Egypt

The recent troubles in Egypt highlight the need for taking out travel insurance. Thankfully it was rare for tourists to actually be injured and require medical attention as the protests were largely non-violent. However, it was still a potentially unsafe area and not a place you would want to go for holidays. Luckily there were several benefits of travel insurance that would help.

Cancellation - If you were yet to go to Egypt your Travel Insurance provider was more than likely happy to pay your cancellation costs so you weren't out of pocket. Alternately they could pay for the costs associated with moving your travel plans to another date. It is cheaper for them to do this than potentially have to spend a lot more if you get hurt over there or the situation gets even worse. If you were already in Egypt and wanted to fly out you could be reimbursed for cancellation charges of accommodation, flights, tours etc that you hadn't used.

Additional Costs - If you were in Egypt and wanted to get out then your travel insurance should pay for any additional costs that arise from this such as flights, accommodation, and transport.

Medical Costs - And of course if you are injured during an event like this you will be covered for your medical and hospital costs.

Always check with your travel insurance company if you are heading into an area that is potentially dangerous like the Egyptian crisis or it may involve volcano's, cyclones, or other natural disasters. You can also review your travel insurance policy to check what you will be covered for.

Icelandic Volcano and Travel Insurance

Allianz and QBE have said that they will cover all reasonable costs as a results of the Icelandic Volcano: article on SMH

Other insurance companies may provide cover. Check directly with your insurer and find out what they are prepared to cover. Otherwise you may find yourself out of pocket substantial hotel and meal costs.

Remember to keep all receipts, get written proof from the airline that you are affected, and do all you can to minimise the claim.

If you are still looking to take out a travel insurance policy then try Travel Insurance Reviews Australia.

Travel Insurance -- Essential Protection for Everyone

The conventional reasons that individuals purchase travel insurance is to cover their luggage against theft or incase the airlines lose it. What people often neglect is the necessity of having a travel insurance policy that extensively covers them for medical emergencies.

The Australian government travel advisory website, Smartraveller.gov.au, provides some examples of costs: hospital stays in South East Asia have exceeded $800 per day; repatriation of remains from Europe can cost $10,000; medical evacuations from the USA can cost up to $300,000 and from nearby Bali has exceeded $60,000.

These figures are painful because if you had to pay them without travel insurance you may end up financially bankrupt. It is not too difficult to find a good insurance policy that will cover you in case of a medical emergency. In Australia it is required for travel insurance companies to supply you with a Product Disclosure Statement (PDS) prior to purchase. A PDS details what the policy covers including what they will pay for certain incidents and any if there are any specified terms and conditions attached. If you have a pre-existing medical condition then you'll need to check to see if you are still eligible for cover.

In Australia all the major travel insurance companies have websites so it is easy to compare their price and cover. Some of the largest companies are: Insure4Less, iTrek, Travel Insurance Direct, World Nomads, 1 Cover, AAMI, Allianz, and Columbus Direct. Just search for them and others using your favorite search engine.

Look for the PDS once you are at their website. It will usually be on the quote and product pages. Open it up and don't be worried at how confusing it can look, scroll down to the Schedule of Benefits, a large take with lots of dollar values in it. Ensure that the sections labeled Medical Expenses and Medical Evacuation or similar are unlimited or in the millions.

Get a quote for have a policy that covers what you need. Narrow your search down to those that offer the lowest premiums for your requirements. Reading online reviews can be very helpful at this stage to make the final decision.

Need help with Australian Travel Insurance? Go read up at Travel Insurance Reviews and check out the Travel Insurance Direct (TID) Review.