As Bali grapples with the impacts of a recent volcanic eruption, Australian holidaymakers are facing significant disruptions to their travel plans.
The incident has highlighted the importance of comprehensive travel insurance, especially for natural disasters, with Compare the Market’s Adrian Taylor urging travellers to carefully evaluate their cover.
Not All Travel Insurance is Equal
One crucial point to consider is that not all travel insurance policies automatically cover natural disasters. According to Compare the Market, some policies require additional coverage to include natural disasters, meaning travellers may need to purchase extra protection or upgrade to a premium package. Adrian Taylor, General Manager of General Insurance at Compare the Market, emphasised the importance of securing appropriate cover immediately after booking any travel.
“Whether you’re headed to Bali or any other destination, purchasing travel insurance that includes natural disasters and weather emergencies is essential,” Mr. Taylor advised.
“Travellers may need to add disaster cover as an extra, or opt for a top-level policy where it’s already included. There may also be limits on claims, so it’s wise to consider increasing cover if you’re travelling to high-risk areas.”
Understanding Known Events and Claim Limitations
In light of the Bali eruption, a significant takeaway for travellers is the concept of “known events” in the insurance world. Once an event, such as a volcanic eruption, becomes public knowledge, it is typically no longer considered an unforeseen occurrence by insurers, making it ineligible for new claims. This is why purchasing insurance as soon as a trip is booked is strongly recommended, according to Mr. Taylor.
“Natural disasters can quickly transition to a ‘known event’ status, meaning insurers may not cover any new claims for them,” he said. “Securing travel insurance early is vital, as insurers only cover unforeseen or unexpected events.”
Important Tips for Safe Overseas Travel
To help travellers stay protected, Mr. Taylor offered the following advice for those venturing overseas:
- Monitor Weather and Government Alerts
Familiarise yourself with the weather conditions and natural disaster risks at your destination. Travel insurance premiums may be higher in higher-risk areas, so consider this when budgeting for your trip. - Purchase the Right Cover Promptly
Ensure you obtain suitable cover as soon as you finalise your travel plans. Keep in mind that if you’re visiting multiple destinations, each location may carry distinct risks and may require additional coverage. - Know What to Do in an Emergency
If caught in a natural disaster abroad, contact local emergency services immediately and reach out to your insurer for guidance. Emergency consular assistance is also available 24/7, and travellers should keep both the insurer’s contact details and emergency procedures accessible.
With natural disasters impacting destinations across the globe, travel insurance has become an essential safeguard for Australian travellers. For those visiting Bali and other high-risk areas, comprehensive cover can offer peace of mind—and financial protection—in unpredictable times.
