SCTI introduces budget-friendly medical coverage for travellers

Southern Cross Travel Insurance (SCTI) has introduced a new International Medical Only policy, targeting travellers who want medical coverage without the additional features of comprehensive insurance.

This initiative follows SCTI’s Future of Travel 2024 report, which found that while 51% of New Zealanders prioritise travel, 10% opt out of travel insurance to save money. The report highlighted the financial risks associated with traveling uninsured.

Importance of medical coverage when travelling

Over the past year, SCTI has processed significant medical claims, including over NZ$1.2 million for a traveller injured in the USA. Between July 1, 2023, and April 30, 2024, the insurer handled over $9 million in total medical claims.

SCTI CEO Jo McCauley (pictured) emphasised the necessity of medical coverage, pointing out that even minor travel incidents can result in large medical bills.

“While a small number of travellers think they can get away without taking out comprehensive insurance, many New Zealand travellers underestimate the potential costs associated with common travel mishaps. From trips and slips outside a restaurant to piercing a foot playing a quick game of football, what seems like something small can end up costing thousands of dollars in medical costs,” she said.

International Medical Only plan

The Future of Travel report revealed that 85% of New Zealand travellers this year are seeking ways to reduce expenses.

SCTI’s new International Medical Only plan is designed for budget-conscious travellers seeking essential medical coverage.

“For around $12 a day, it’s certainly well worth investing in affordable insurance for health cover rather than panicking about how on Earth you’ll meet hospital costs far from home,” McCauley said.

She said the International Medical Only policy offers an alternative to SCTI’s comprehensive policy.

“International Medical Only is an alternative to our flagship International Comprehensive policy; catering to those on a tighter budget who still want medical protection but without other regular features of travel insurance policies, such as cover for cancellations and lost luggage,” she said.

McCauley said that younger travellers under 30 are more inclined to skip insurance to save money, while older travellers (65+) often rely on credit card travel insurance, which may not provide adequate protection.

“In our experience, for both young and old, medical costs can escalate beyond what most people can afford when unexpected health issues occur for uninsured travellers,” she said.

Travel insurance claims that resulted from simple mishaps

McCauley stressed that medical costs can quickly escalate, citing examples from SCTI claims over the past two years:

• A 10-year-old skiing in the USA incurred $406,000 in medical expenses.
• A 39-year-old fell at a skate park in the USA, resulting in costs of $107,190.
• A 69-year-old required an emergency air ambulance from Indonesia, totalling $256,959.
• A 13-year-old needed inpatient care after nearly drowning in Indonesia, costing $36,000.
• A 31-year-old fractured ribs in Indonesia, with expenses reaching $43,000.
• A 15-year-old injured in South Africa incurred $36,000 in medical bills.
• A 56-year-old broke his leg in Indonesia, costing $39,000.
• An 80-year-old needed care after slipping in Italy, totalling $41,500.
• Another 80-year-old broke her ankle in Germany, resulting in $42,000 in expenses.
• An 81-year-old experienced a coronary event in Thailand, with costs amounting to $16,500.

“When you look at the cost of a policy against the actual medical costs Southern Cross members have claimed, it puts everything in perspective,” McCauley said.