What Does Travel Insurance Cover (and What It Doesn't)?
Medical, cancellation, luggage, delay — and the exclusions that catch people out every year.
Travel insurance is not a single product — it's a bundle of coverages, and what's included varies significantly between policies and providers. Here's what the main components actually cover.
Overseas medical and hospital
The most important component. Covers emergency medical treatment, hospitalisation, surgery, and ambulance costs while overseas. Look for 'unlimited' medical cover — a medical evacuation from Asia or the US can cost $50,000–$500,000.
Medicare does not cover you overseas. This is the one cover you should never skip on international travel.
Trip cancellation and amendment
Covers pre-paid, non-refundable costs if you have to cancel or shorten your trip due to a covered reason (illness, death in family, natural disaster). Not all reasons are covered — 'I changed my mind' is not a covered reason.
- •Covered: Your or a travelling companion's illness or injury; death of a close relative; natural disaster making your destination uninhabitable
- •Not covered: Change of mind; work obligations (usually); pandemics (check your specific policy)
Luggage and personal effects
Covers loss, theft, or damage to baggage. Most policies have an overall limit ($3,000–$10,000) plus sub-limits per item (often $300–$750 for electronics, jewellery, or cameras). Valuable electronics and cameras usually need to be scheduled separately.
Tip
Always report theft to local police within 24 hours and get a written report. Without it, luggage claims are almost always denied.
Travel delay and missed connections
Covers accommodation and meal costs if your flight is delayed beyond a threshold (usually 6–12 hours). Missed connection cover kicks in if a delay causes you to miss a connecting flight.
Common exclusions that catch people out
- •Adventure activities — bungee jumping, skiing, scuba diving may require add-ons
- •Alcohol-related incidents — many policies exclude claims where intoxication is a factor
- •Unattended luggage — luggage left unsupervised in a public place is typically excluded
- •Pre-existing conditions — unless declared and accepted (or covered under an 'any condition' policy)
- •Travelling against government advice — DFAT travel advisories matter; 'Do Not Travel' destinations void most cover
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