Common phrases you may come across in travel insurance policies
When you understand the terms of your insurance policy and the fine print, you may be better prepared when things go wrong during your travels. Good preparation and a clear, understandable travel policy are among the keys to a successful holiday.
Here's some phrases you might come across in your research into travel insurance policies. The phrases and definitions are illustrative only and do not indicate actual wording in Australia Post products. Please carefully consult the Product Disclosure Statement of the individual polices of any product you decide to take up.
Accident or accidental
An unexpected, unforeseeable event causing loss that can happen while you're on a trip covered by your policy.
Any type of lodging in which you stay overnight and pay a fee to do so.
Additional accommodation and transportation expenses as a result of events such as sickness, natural disasters, loss of travel documents and strikes.
Amendment or cancellation costs
Cost of rearranging or cancelling your journey because of unforeseen circumstances outside your control such as illness, accidents and extreme weather conditions.
The person who receives compensation from your insurance policy in the event of your death.
Benefits are what your insurance provider gives you according to the terms of your policy.
A request for payment in accordance with your insurance policy.
Cover or coverage
This is the extent of protection afforded by your policy.
Current Market Value
The amount of money an item would bring if sold in the current local market. This is based on what it could be sold for in its present state, the original cost, and its current condition and age.
Harm or injury to property or a person, resulting in loss of value or the impairment of usefulness.
A physical or mental condition that limits a person's movements, senses or activities. A disadvantage or handicap, especially one imposed or recognised recognised by the law.
Emergency Medical Care
This includes anything that constitutes an emergency. It does not include any type of regular, foreseeable medical care or needs.
An endorsement is any special condition listed on your policy.
If you have an excess on your policy, this is an amount you have to first pay towards a claim.
Existing Medical Condition
Conditions where you've received treatment by a medical practitioner within the past 90 days, are under investigation for, on a treatment waiting list, or have changed medications in the last 60 days.
'Home' means your usual place of residence in Australia.
Costs associated with an event, such as an injury or accident, which are not directly related to the event.
An injury is anything which harms you that occurs by accidental or violent means that is covered by your policy.
'Journey' means the period you're covered for commencing at the time you leave your home and ceasing at the time you return to your home.
Luggage and personal affects
Any personal item owned by you and carried with you on a trip during your period of cover including, but not limited to,: clothing, personal jewellery, personal computer, electrical devices or portable equipment.
Any medical treatment that is needed, is consistent with the symptoms you display, and can safely be provided. It does not include any procedure that's done simply for convenience.
This is any event caused by nature and not by any human activity. This can typically include earthquakes, storms, bushfires and floods.
Overseas medical expenses
Overseas hospital, surgical nursing, ambulance and emergency dental expenses.
Period of cover
The time period during which your policy covers your travel.
Personal Liability meaning the party or parties involved are solely responsible for any debts accumulated.
This is cash or credit that can be given to you as reimbursement according to the terms of your policy.
Rental car insurance excess
Excess charges for damage to or theft of a rental car while in your control.
Resumption of journey benefit
Cost to resume your travels if you had to return to Australia due to a sudden serious injury, sickness, disease or death of a relative or business partner in Australia.
Sudden illness or serious injury
An illness or injury that occurs during your period of cover which necessitates treatment by a health professional.
Scheduled transport that is delayed by over six hours.
The term reasonable when associated with an expense or cost refers to what is usual, needed and lives up to the standards of the travel you reserved.
An unforeseen circumstance is one that was out of your control and can include an illness, an accident, cancelled flights, or a natural disaster.
This advice is general in nature, and doesn't consider your personal situation. You should consider your own needs and the Product Disclosure Statement (PDS) before making a decision to buy the product.