New Zealand travellers preparing for the holiday season are being encouraged to consider comprehensive travel insurance, as recent claims data reveals the financial and logistical difficulties of common travel setbacks.
Southern Cross Travel Insurance (SCTI) has reported significant payouts from last year’s holiday period, emphasising the importance of safeguarding against risks such as medical emergencies, lost baggage, and other unexpected events.
Medical and evacuation-related expenses accounted for a major portion of SCTI’s payouts during the November 2023 to February 2024 holiday period, totalling $2.67 million.
The most expensive claim exceeded $460,000, demonstrating the substantial costs that can arise from unforeseen health issues abroad.
Jess Strange, chief customer officer at SCTI, noted the complexity of navigating foreign healthcare systems.
“Navigating different languages, healthcare systems, and standards of care can be incredibly stressful for travellers and their whānau,” she said.
Respiratory illnesses, including flu and pneumonia, were frequently reported, with many cases requiring extended hospital stays. Regions such as Southeast Asia were highlighted as having a high number of claims from younger travellers experiencing these health issues.
Claims for lost or damaged personal items during the same period exceeded $1 million, covering incidents such as stolen luggage and broken Christmas gifts.
Strange recommended that travellers take precautions to secure their belongings, including locking bags, wrapping luggage, and storing valuables safely during transit.
SCTI revealed that Australia, the US, and Japan are among the most popular destinations for New Zealand travellers this season.
Japan’s appeal as a skiing destination comes with its own risks, with accidents on the slopes leading to significant medical claims. One skiing-related claim earlier this year amounted to over $19,000, emphasising the need for snow sports coverage.
“If you’re planning to hit the snow overseas, consider checking that your policy includes cover for snow sports, or look at purchasing it as an add-on,” Strange said.
Bali continues to be a frequent destination for New Zealanders but is also a source of high travel insurance claims. Foodborne illnesses like Bali Belly, moped accidents, and wildlife encounters are among the top reasons for claims in the region.
Strange advised travellers to take safety measures, including purchasing moped insurance and being cautious with food and drinks.
Incidents involving rental vehicles were another common source of claims. A New Zealand couple traveling in Scotland incurred charges for minor damage to their rental car, which was covered under SCTI’s rental car excess protection.
Strange highlighted the importance of understanding rental agreements and ensuring adequate insurance coverage for such scenarios.
