Thursday, 4 July 2024

As millions of Australians head to warmer countries for the July school holidays, a new survey has provided a timely reminder for holidaymakers to ensure they have the right travel insurance for their plans – particularly when it comes to alcohol consumption.

Travel insurance provides protection against unforeseen accidents, damage or loss, and should be as essential for travellers as their boarding pass and passport.

Travel insurance policies list the exclusions that may apply when a policyholder is under the influence of alcohol when an accident or loss occurs.

Many policies will cover accident or loss that occurs when the policyholder has a blood alcohol reading up to 0.19 per cent – about four times the legal limit to drive in Australia.

Despite this, the survey of 1,007 Australians who travelled overseas in the past year found:

• Of the 87 per cent of Australians who took out travel insurance on their last overseas trip, 69 per cent said they drank alcohol on that trip.
• Forty per cent of travellers were aware that alcohol consumption requirements in travel insurance policies can vary from insurer to insurer.
• Fifty-five per cent of those who took out travel insurance, knew about policy variations, and drank alcohol, were unsure about how their own travel insurance treated alcohol consumption in the event of an accident.
• One in eight Australians (13 per cent) were not covered by travel insurance at all on their most recent overseas trip.
• Younger Australians, those from low-income households, and those from culturally and linguistically diverse backgrounds had higher than average propensity to travel uninsured.

The survey was undertaken by Quantum Market Research for the Insurance Council of Australia (ICA) and the Department of Foreign Affairs and Trade’s Smartraveller.

Quote attributable to ICA CEO Andrew Hall:

When you are planning your overseas holiday travel insurance is a must-have, as is ensuring that you are covered for the activities you have planned.

While enjoying a drink or two is a key part of holidaying for millions of Australians, travellers should be aware of what they are covered for so that a broken bone doesn’t lead to a broken bank account.

Travellers should make sure they read their policy documents so they understand what they’re covered for, whether that involves drinking alcohol, going for a hike or riding a motorcycle.

Shop around, compare options, and ask questions to find the right coverage so the trip of your dreams doesn’t become a nightmare.

Tuesday, 18 June 2024

The Insurance Council of Australia (ICA) has today welcomed the significant funding for resilience in the New South Wales Government’s 2024-25 Budget as a positive step for communities that should support efforts to improve insurance affordability.

The $5.7 billion four-year recovery and resilience package includes $525 million towards the Resilient Homes Fund to be rolled out across the Northern Rivers and Central West regions, which will help reduce the risk of flood damage to homes and help protect lives in some of the most at-risk areas of the country.

$87.4 million for the Resilient Lands Program will address flood recovery and future planning in the Northern Rivers region and unlock new land for development and relocating homeowners in high-risk flood zones.

The commitment to further investment in resilience and mitigation measures to protect communities against extreme weather comes as updated insurance data shows that catastrophic extreme weather events in NSW over the past two years has caused around $4 billion in insured losses.

The ICA also welcomed the Government’s recommitment to remove the Emergency Services Levy (ESL) – an unfair burden on insurance customers amidst a cost-of-living crisis.

New South Wales has the highest rate of insurance taxes in the country with insurance customers hit with both Stamp Duty and the ESL, which means they pay 20 to 40 per cent more for insurance than any other state or territory.

The Budget Papers show that without reform the Government would collect more than $12 billion from insurance customers over the forward estimates – around $5 billion through the ESL and $7.1 billion through stamp duty.

The reforms to ESL currently underway will reduce this burden on insurance customers and bring insurance tax arrangements into line with every other mainland state or territory.

Quote attributable to Insurance Council of Australia CEO Andrew Hall:

Today’s budget announcements are important investments in the future of New South Wales communities and should improve insurance outcomes in the State.

By prioritising resilience initiatives, the Government is taking a proactive approach to safeguarding lives and property from the increasing threat of extreme weather events.

The Government’s recommitment to removing the ESL is welcome and will ease the burden on New South Wales insurance customers.

For years the ESL has unfairly penalised insurance customers in the State, who because of flood risk already pay some of the highest insurance premiums in the country.