Travellers may be unaware that drinking could result in travel insurance claims being denied. Photo / 123rf
Travellers may be unaware that drinking could result in travel insurance claims being denied. Photo / 123rf
After months of saving and weeks of planning, you’re finally on that long-awaited holiday. First on the list is a vineyard bike tour. A few stops (and a few drinks) later, you’re tipsily pedalling towards the final cellar door when you tumble off the bike.
Thebad news is that you’ve fractured your wrist. Even worse? Your travel insurance won’t cover any of the medical costs.
Like health or contents insurance, travel insurance typically involves exclusions; circumstances that allow the insurer to deny your claim. Some of these are commonsense, such as illegal activities, pre-existing health conditions or travelling against government advisories.
However, one activity Kiwis love is also on the list, and few people are probably aware of it, says insurance expert David Wallace.
“Kiwis need to be aware of their alcohol use while travelling and understand that your insurance may not be the safety net you thought it was when it comes to behaving recklessly,” said Wallace, who is Allianz Partners New Zealand’s chief sales officer.
While it’s obvious that an accident caused by drinking and driving wouldn’t be covered, Wallace said people don’t realise drinking and other, very legal, activities also may not be covered.
“Whether it’s a wine-tasting bike tour in Italy or a boat party off the coast of Europe during your OE - if you are under the influence and have an accident or get injured, you’ll, unfortunately, have to front any medical bills or other associated costs on your own,” he said.
Why alcohol-fuelled accidents are not covered
Considering the purpose of travel insurance, this makes sense, says Southern Cross Travel Insurance chief executive Jo McCauley.
“Travel insurance is largely about helping travellers when they face the unexpected – helping them when things don’t go according to plan,” she said, giving health events, flight cancellations and loss of property as examples.
Insurance is not, according to McCauley, about covering what happens when you have one too many Aperols in Italy or Bintangs in Bali.
“Southern Cross Travel Insurance policies, like most insurance policies, have an exclusion for events that are the result of alcohol consumption,” she said.
There is nothing wrong with enjoying a few drinks on holiday but McCauley said even mild alcohol (or drugs, when legal) can impair judgement, so travellers should understand how this can impact claims.
How does an insurer treat a claim where alcohol is involved?
When insurers assess claims, they must consider all the factors that could have caused the event or accident, and judge whether it was avoidable. Consuming alcohol is one such factor and an avoidable one.
If a customer goes to hospital following an accident, McCauley said Southern Cross will use the patient’s account and the medical information to “establish the basics” of what happened.
“If it is determined that alcohol or drug consumption has impaired someone’s judgement sufficiently enough to result in an accident, there are grounds for us to decline the claim,” she said.
Similarly, at CoverMore, the key question is whether the intentional consumption of alcohol or drugs caused the event or accident.
“Being under the influence does not mean your claim will be denied – most travellers let their hair down while travelling a bit and we are not in the business of being the moral police,” they told Herald Travel.
How much is too much?
So, the question travellers may wonder is, how much is too much?
As McCauley mentioned, that is a question often decided by an expert toxicologist but clarifies that having a drink or two won’t typically cause issues for your travel insurance or claims.
“In most cases, a glass of wine will not be the cause of the injury or illness,” she said. “We understand that people are on holiday and that having a drink is reasonable.”
If you have insurance with CoverMore, it’s almost four times the legal driving limit but only for ‘normal’ holiday activities such as tubing down the Mekong River or going on a bike tour. Driving and other activities that have pre-existing alcohol limits are not included.
Voided claims are rare says insurer
Fortunately, Southern Cross has only denied two claims relating to alcohol consumption in the last 12 months.
“It’s clear most travellers take a cautious approach, while we do decline proven claims for customers who have an accident for these reasons,” McCauley said.
