An alarming number of Australians are heading overseas without travel insurance or inadequate policies, according to a survey.

The survey of 1000 travellers, commissioned by the Insurance Council of Australia, found 16 per cent of Australians had no travel insurance the last time they headed off on a jaunt.

ICA chief executive Andrew Hall said that number was too high,

“We hear horror stories of people on their dream holiday, basking in the sun on a pristine beach and suddenly falling ill and having to spend a night or two in hospital,” he said.

“Without travel insurance, these people are faced with the daunting reality of having to cover the potentially exorbitant costs of medical care in a foreign country.”

In all, 60 per cent of travellers under the age of 30 said they were likely to travel without insurance. In a far less surprising trend, only 19 per cent said they were likely to read the entire policy.

A travel insurance policy may not cover every activity or incident. Photo: AP

More than a third of those surveyed offered the spiralling cost of living as a key reason why they’d choose to travel without insurance or take risks that weren’t covered.

Despite that, Hall said the choice could be a gamble.

“Even a short trip can be disrupted by unexpected events, such as illness, accidents, or lost luggage,” he said.

“Without insurance, you could be left facing significant financial burdens.”

The cost factor

Advocates and travel advice sites such as Choice and SmartTraveller agree that insurance is an essential part of travelling because of the worst-case scenario. Nonetheless, 15 per cent of recent travellers said they’d gone without insurance because they couldn’t afford it.

According to Choice, 68 per cent of Australians mistakenly believe the government will ensure they get medical treatment if they need it overseas and 43 per cent believe it will foot their medical bills in an emergency.

Another pitfall for travellers is that providers offer different cover for geographical regions.

An incident can derail a holiday even in countries with reciprocal healthcare agreements. Photo: Getty

Some countries, such as Singapore, the UAE and most European nations, block people without travel insurance from entering.

Others with reciprocal healthcare agreements with Australia – which include New Zealand, the Republic of Ireland, Britain and Finland – will cover healthcare costs in an emergency that can’t wait until you return home. But travel insurance goes further – and will also cover such things as a medical escort back to Australia, delays and stolen items.

According to Choice, the most common insurable events are cancelled flights or tours, delayed travel, medical treatment, lost, damaged or stolen luggage, missed connection flights or being forced to cancel a trip before departure from Australia.

Hall said the ICA encouraged travellers to prioritise safety and financial wellbeing.

Plan ahead, buy early

“Buy travel insurance ahead of time and read the product details, conditions, exclusions, and inclusions,” he said.

“Not all policies are the same, so it’s important travellers find a policy that best meets their travel plans and has the policy inclusions.”

Information such as cancellation costs, medical bills and reparation because of COVID-19 can differ between policies.

There are a wide variety of places to buy travel insurance, including travel agents, banks and insurance brokers.

Also worth bearing in mind is that there are circumstances in which a claim might be declined by the provider. According to Choice, the four most common are policy exclusions or event not included in the conditions, the claim amount being below the excess, the claim being due to a pre-existing medical condition or if it is for an item stolen while unattended.