Common traps

Insurance often contains nasty little surprises in the exclusions. Here are some issues that could trip you up:

• Declare relatives’ illnesses: Although you’re covered for curtailment or cancellation of travel due to the death or illness of a close relative, you need to declare a relative’s illness when you take out a policy.  Some insurance policies even exclude cover for the death or illness of someone who lives outside New Zealand.
• Contact your insurer immediately: Even if you are seriously ill or injured, it’s essential to contact your insurer immediately if you need to make a claim while you are abroad.  
• Repatriation: If you’re travelling to a country in which advanced health care might not be available in a local hospital, make sure your policy covers repatriation.  To get repatriated privately in an air ambulance can cost up to $100,000 – money you’ll have to pay yourself, because the New Zealand Government won’t.
• Vaccinations: We were surprised to learn from the Insurance Council that even if you ignore advice to get vaccinated against diseases such as yellow fever, you’re still covered if you fall ill. However, we strongly recommend that you follow all vaccination guidelines.
• Winter sports: You may think of skiing or snowboarding as pretty regular activities – but insurers don’t. Make sure you’ve told your insurer before you hit the slopes. If you break a leg or worse and your insurer declines the claim you could be hit with expensive medical bills – especially if you’ve chosen to ski or snowboard in the US.
• Hazardous pursuits: Scuba diving, bungee-jumping, hang-gliding, water skiing and motorcycling are often automatically excluded from cover.  Again, check with your insurer if you’re planning adventure sports of any kind while on holiday.
• Loss of deposit: Most travel insurers won’t cover you for loss of deposits if your travel agent, airline, car rental or accommodation provider goes bust. However,  you may have some protection from the Travel Agents Association New Zealand protection bond.
• Multi-trip traps: Annual multi-trip policies cover you for a year, but each trip within that time is usually limited to trips of 30 to 90 days. So you can’t use annual travel insurance for a long trip or a working holiday.