The hidden insurance danger catching Aussies out when travelling overseas and costing them thousands
Australians could be at risk of missing out on valuable insurance payouts while travelling overseas, a legal expert warns.
A spate of Australians have been involved in major accidents or incidents overseas recently, including narrowly escaping a sinking boat in Bali that killed three people.
Whilst most Australians do purchase travel insurance before venturing overseas, they have been urged to check the fine print of their plan.
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Five Aussies were on board a boat that capsized in Bali earlier this month. Liam Kerr/Supplied
"Insurers often conceal ambiguous policy exclusions in the fine print and in many cases the fine print is not made obvious to customers," Peter Carter from Carter Capner Law said.
"Keep in mind that insurers are in the business of claim denial. It's part of their business model."
He also said companies will categorise activities such as drinking alcohol and riding a motorbike or jet ski as "high-risk" to help deny claims.
Carter said there is one surprise strategy travellers can employ before leaving to avoid being stung by insurance companies.
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Aussies are being warned to look carefully at their travel insurance to avoid missing out on crucial funds if an accident befalls them on holiday. Getty Images/iStockphoto
"To receive the compensation needed to cover serious injury and the ongoing expenses, you may have to seek legal compensation upon your return, and you will have better prospects if this involves an Australian company," he said.
"It's more difficult if you booked through a small, local outlet in a far-away country."
He reminded Australians of the consequences that could befall them if they don't do their homework.
"When they return, life may not be the same if the injury affects their employment or way of life," he said.
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