Travel Insurance
3. Product Disclosure Statement
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 25 Aug 2015
- A Product Disclosure Statement (PDS) is a document provided to you by the insurer that can assist you in making an informed decision about purchasing travel insurance. The PDS together with your certificate of insurance will make up the terms and conditions of your insurance agreement. You should read the entire document.
- A PDS is generally divided into:
- a table of benefits;
- pre-existing conditions disclaimer;
- word definition table;
- policy cover;
- general exclusions; and
- claims.
- The policy cover section should outline what the insurer will and will not pay for. If you have concerns about a specific item you should discuss this with the insurer prior to purchase and ask them to confirm it in writing.
- The general exclusions outline a list of events that will not be covered under the policy. These can be difficult to understand. Often the way that the policy is set out is unnecessarily confusing. Any specific questions should be directed to the insurance provider and their answers recorded in writing.
- You should note that some of the words used in your policy documents do not necessarily have the same meaning that they would if you were speaking casually with a friend in normal conversation. In a PDS words can have a very specific and sometimes unusual meaning. The word definition table outlines the definition of the word from the insurer's prospective. You should read this carefully.
- Reading the fine print of any PDS is essential. What at first seems simple can become complex when you factor in the many exclusions and restrictions.
- For example it may appear that your policy covers you for injury sustained while riding a motorcycle. The fine print may specify that this is only the case if you were on a motorbike with an engine capacity of less than 150cc, were wearing a helmet at the time and travelling with a licensed motorcycle driver. Scooter and motorcycle accidents are some of the most prevalent accidents while travelling.
- Your policy may cover you for a range of outdoor activities as a rule. However if you are found to have a blood alcohol reading when an accident occurs this may prevent you from being able to claim from your insurance provider.
- Another common misconception is regarding stolen luggage. Although on the face of it your insurance policy will cover your luggage in the event it is stolen the insurance provider might have an interesting opinion on what 'stolen' actually means. For example your travel insurance provider may not cover you for stolen luggage if you have left it unattended in a public place. The term 'unattended' can have a range of different meanings. Some policies say that luggage is unattended even if you can see it but it is not within arms' reach.
- These examples should emphasise the importance of carefully reading your PDS from front to back.
- The claims section provides you with advice on what you should and should not do in the event that something unforeseen occurs. You should read this early because it is too late after the event to say that you did not know that the insurer needed the matter handled in a certain way.
- For example you may need to obtain a range of documentation at the time an event occurs. This could include a police report, doctor’s certificate or witness statement.
- Another common example is the need for non-emergency medical care. You may need to contact the insurer to get their pre-approval first.
- You will also need to check the relevant legislation in your state or territory as the rules can be different in each jurisdiction. Policy wording may vary.
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