One of the benefits promoted by premier (read: gold and platinum) charge or credit cards is free traveller insurance. You feel as though you are getting something for nothing and getting special treatment because of your status as a premier card holder. But how comprehensive is it?
The Australian Consumer Association's publication Choice has surveyed the cover on offer and has come up with some interesting findings. That survey assessed travel insurance attached to the gold cards offered by the big four banks and the American Express Platinum charge card.
Choice found that while the banks' policies provide reasonable cover for the US, Europe and New Zealand, the Amex platinum card didn't score well for travel to the US or Europe because of cover limitations and restrictions. Choice recommends unlimited medical cover for these destinations and the Amex policy cover is limited to $1 million. Choice points out that medical evacuation alone from the US can cost up to $300,000. A stint in hospital can set a person back tens of thousands of dollars a day, and intensive medical treatment is quite near to being unaffordable.
The fact that $1 million is not considered enough if you have an accident or fall ill in the US or Europe says heaps for how out of control the cost of medical treatment is in those continents, in comparison to Australia. One can only hope that the gradual dismantling of Medicare does not leave us facing a similar situation here down the track.
Choice looked at 83 international travel insurance policies and five policies attached to premier cards and found that conditions, exclusions, amounts of cover and premiums vary greatly from policy to policy.
Following September 11, 2001, terrorism exclusions were added and cancellation cover due to acts of terrorism is no longer available with any of the policies.
Because of the many differences in policy covers and conditions, Choice advises travellers to get a copy of the policy on offer to check the small print for conditions and restrictions to ensure that the policy meets all their needs.
It is not enough to assume that the cover is deluxe quality and comprehensive because it is attached to a premium card.
American Express's travel accident insurance covers green and gold charge cardholders for death or loss of a limb in an accident during transport, such as on a flight. Cover is up to $250,000 for gold and $150,000 for green cardholders. There is no travel cover with Amex credit cards as opposed to charge cards.
Among Choice's recommendation for best deals for bought travel policies are health fund HBF's gold policy, RACV's Plan A+ (available only to RACV members in Victoria), Superannuation Trust of Australia Policy A+, Australian Unity Plan A, Columbus Direct Worldwide for US cover, and Suresave Holiday Europe.
Existing conditions can be a major pitfall for travellers taking out insurance. Travellers are only covered for existing medical conditions if the insurer is notified of that condition and agrees to cover it, usually for an additional premium.
Some policies have age limits for medical cover or charge an additional premiums for travellers aged over 65.
Non-disclosure of existing conditions, such as heart irregularities, cancer or diabetes, can render the policy void if a claim is made.
If travellers plan to engage in dangerous sports such as scuba diving, rock climbing, hot air ballooning and white water rafting, there may be restrictions for any claims arising from these activities or payment of an additional premium may be required.
Pregnancy is usually regarded as a pre-existing medical condition and must be declared (if known), and there is usually a cut-off date after which the policy won't cover a woman in advanced pregnancy.
