Southern Cross Travel Insurance (SCTI) has highlighted significant financial risks associated with domestic travel in New Zealand.
With an increasing number of New Zealanders embarking on local adventures such as Great Walks and high-profile tours, SCTI’s recent data emphasised the need for travel insurance to protect these investments.
SCTI CEO Jo McCauley noted that the Accident Compensation Corporation (ACC) and Health NZ – Te Whatu Ora cover do not cover the non-refundable expenses incurred from cancelled travel plans due to illness, injury, or other unexpected events.
“It’s true that if you have an injury when travelling around Aotearoa and you have an accident New Zealanders do have ACC to cover medical costs and rehabilitation, and of course you can turn up to any hospital and be treated through our public health system should you fall ill. But ACC and Health NZ – Te Whatu Ora will not pick up the tab for you having to cancel thousands of dollars of travel for a Great Walk you can no longer do or a domestic cruise or adventure you have to cancel thanks to illness, injury, family bereavement, or a host of other reasons,” she said.
From July 2022 to early May this year, SCTI paid out $1,051,603 in claims for domestic travel incidents. Notable claims included $11,000 paid to a traveller who had to cancel the rest of a family trip due to a hiking injury.
“Great Walks, particularly the guided journeys, can cost thousands per person and are non-refundable the closer you get to the date of departure. Note the Milford Track sold out in something like 45 minutes just recently,” McCauley said.
Other recent significant claims include:
Over the past 17 months, SCTI’s data showed that the average domestic claim was 70% of the value of an international claim.
Moreover, the number of claims for domestic policies exceeded those for international comprehensive policies during the same period, with a slightly higher claims paid rate for domestic policies.
“All of our data shows that customers are certainly finding a reason to claim on their domestic travels and illustrates just how much domestic travel insurance can support NZ travellers adventuring at home,” McCauley said.
SCTI’s recent study found that Kiwis continue to hunger for travelling despite economic pressures and the disruptions, with 78% of the respondents travelling domestically in the past year.
