A recent study has found that one in six Australians plan to participate in risky outdoor activities this year, reminding brokers to inform their clients that adding adrenaline to their holidays could cost them their insurance cover.
Finding the right travel insurance that would cover outdoor activities and adventure sports has always been tricky business, said comparison website Finder.com.au.
“Thrill seeking can void your ability to make a claim if something goes wrong,” Finder spokeswoman Bessie Hassan told News Corp Australia. “Often exclusions can be hidden in the fine print, so it’s important for policyholders to get clear on the product disclosure statement to ensure there’s no confusion if it comes time to claim. If still confused, contact the insurer directly.”
Finder’s survey, with more than 2,000 respondents, found that women were just as adventurous as men, and that this year’s most popular sports were snow sports, skydiving, and scuba diving.
As such, brokers need to advise their clients to check their policy in advance as some forms of income protection, illness, and accident insurance will not pay out claims if the injury occurs due to a risky sport. Another sign that injuries due to a risky sport are not covered by a policy is when an insurer actually offers separate adventure sports cover, the report said.
According to travel insurer Cover-More, its standard policies cover many adventure sports, including bungee jumping, white water rafting, and skydiving; but it charges extra for snow sports or motorcycle or moped riding; and excludes hang gliding, rodeo riding, BASE jumping, freestyle BMX riding, and running with bulls, the news agency reported.
Life insurer TAL, meanwhile, said adventure sports could mean an increased premium or exclusion, or a decline of any cover.
“It will depend on the type of sport, level of participation, and the types of insurance benefits applied for,” a spokesperson for TAL told News Corp. “Income protection outcomes are more likely to be exclusions. Evidence indicates that adventure sports tend to have a higher risk of injury or death. As with all insurance policies, the level of risk impacts the nature of the insurance policy.”
Simon Wotherspoon, director at SA wealth management firm Wotherspoon Wealth, said consumers should always check first what they were covered for, and urged them to work together with their adviser and insurer to be certain.
“You would rather know upfront if something is not going to pay you if you need it,” Wotherspoon told News Corp. “When you put in a claim they’re going to dig deep… without being too cynical, insurers will try to find ways of not paying if they can.”
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