Changes to CommBank Card Travel Insurance Activation

Matt Graham
BRISBANE, AUSTRALIA - MAY 19, 2020: Banner of Commonwealth Bank of Australia (CBA) flagship headquarters office in Brisbane Central Business District on Queen Street. There are people standing on the street.
CommBank is making changes to the travel insurance on its credit cards. Photo: Adobe Stock.

CommBank is making it harder for customers to access the complimentary travel insurance that comes with its credit cards by adding a new minimum spend requirement.

Like most banks, CommBank offers complimentary international travel insurance with most of its premium credit cards. Currently, cardholders would simply need to activate the cover in NetBank, the CommBank app or by contacting Cover-More before their trip to receive coverage. The cover applies to the cardholder, their spouse and up to 10 children travelling with the primary cardholder.

But from 7 February 2024, simply activating the cover will not be enough. In addition to activating the cover, CommBank will soon require cardholders to pay at least $500 in prepaid travel costs for that trip in a single transaction, using their credit card. For example, this could include flights, accommodation, cruise or tour expenses.

The following notice appears on the CommBank website:

From 7 February 2024, you will need to spend $500 in a single transaction on your prepaid travel costs by charging the cost for that trip using your eligible credit card before leaving Australia and activate to receive any cover#. If you activate and/or depart Australia before 7 February 2024, there is no change to the cover for that trip. If you activate and/or depart on or after 7 February 2024, the new Credit Card Insurances Product Disclosure Statement and Information Booklet will apply. This change will not be applicable to World Debit Mastercards.

From the same date, CommBank is also making a range of other minor changes to certain benefits and excess amounts on its international travel insurance, which is underwritten by Cover-More. For example, the excess on overseas emergency medical expenses is increasing from $250 to $500 upon policy activation.

The new rules don’t apply if you activate your cover and depart Australia for your overseas trip before 7 February 2024.

CommBank provides comprehensive international travel insurance as a benefit with many of its credit cards. These include the CommBank Smart Awards and Diamond Awards products.

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Matt Graham
The editor of Australian Frequent Flyer, Matt's passion for travel has taken him to over 70 countries… with the help of frequent flyer points, of course!
Matt's favourite destinations (so far) are Germany, Brazil & Kazakhstan. His interests include economics, aviation & foreign languages, and he has a soft spot for good food and red wine.

You can connect with Matt by posting on the Australian Frequent Flyer community forum and tagging @AFF Editor.
Matt Graham
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CaptJCool Dec 10, 2023 #1

Well kinda sad the easy days are over !

$500
Eurail Pass
Car hire
Return Flight from UK to Europe
3 nights hotel

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t theblank Dec 12, 2023 #2

This change sucks balls for me. I had decided this card was my keeper and churn others, but its on the dungheap now - for me. CBA has alienated those who transfer their points to FF with this change.

I pay for all my flights with FF points, I rarely if ever have paid for flights that are $500 in a single transaction - same would go for most who usually transfer the bank reward points to an airline. As i usually travel to asia, hotels are never $500 either. Sure this is just me, and I am not everyone.

I have sung the praises of this card both Smart & Ultimate from the highest tower since its implemented, IMO its the best in town for the average joe due to no annual fee (if you cant meet the minimum spend - you should not be reading this)

No other bank requires spend of $500 in a single transaction - all others are $500 in total, (ANZ is $250). Some banks will include cover where flights purchased with FF points, if some points were transferred from the card, eg Citi 15k per annum

I can understand why a bank will reduce or water down benefits on products from time to time, or increase fees. So be it. But to take one feature from the top of the tree in the market segmant to the bottom in one swift move is something else.

Sure. Many people wont be impacted by the change at all. A family will still benefit enormously and for them its still the best product out there, and I wouldnt hesitate to recommend it.

Reply 3 Likes

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b burmans Dec 14, 2023 #3

Pays to plan ahead it seems, I’ve got two planned trips next year in April/May and Sept/Oct but have already activated the Insurance!

  • Note: If you activate and/or depart Australia before 7 February 2024, there is no change to the cover for that trip. If you activate and/or depart on or after 7 February 2024, the new Credit Card Insurances Product Disclosure Statement and Information Booklet will apply

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Bindibuys Dec 18, 2023 #4

Just activated for all my 2024 trips.

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Airlinedealschris Dec 18, 2023 #5

While I’m ok with a pre trip spend obligation on the cardholder of $500 in itself I think the “spend $500 in a single transaction” is harsh. Surely those folk at Covermore Insurance have calculators. Sometimes when making airline bookings for two or more passengers the airline splits the single booking transaction into two or more transactions on the credit card statement. If you are listening CommBank and Covermore I ask that you rethink this one and buy your staff calculators so they can add up a number of smaller transaction.

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Ripcurlgirl Dec 18, 2023 #6

Just activated for all my 2024 trips.

Likewise! Thanks AFF otherwise I would have left it to the last moment.

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O Oubline Dec 18, 2023 #7

Does anyone find the language a bit confusing, about pre- and post- 7 February 2024?

E.g. what happens if you activate before 7 February but for a trip later that year.. would all the current conditions of the insurance apply, including no need to spend $500?

Overall I don't like this change. There was something very clean about activating the policy, getting the certificate and knowing you were covered.

Now it seems less clear as presumably the first question if any claim comes will be proving the $500 was spent and on what, potentially opening up an area for them to wriggle out of a claim.

Reply 1 Like

Ripcurlgirl Dec 18, 2023 #8

Does anyone find the language a bit confusing, about pre- and post- 7 February 2024?

E.g. what happens if you activate before 7 February but for a trip later that year.. would all the current conditions of the insurance apply, including no need to spend $500?

Overall I don't like this change. There was something very clean about activating the policy, getting the certificate and knowing you were covered.

Now it seems less clear as presumably the first question if any claim comes will be proving the $500 was spent and on what, potentially opening up an area for them to wriggle out of a claim.

I think it is fairly clear but, to add a quote from @burmans post above:

  • Note: If you activate and/or depart Australia before 7 February 2024, there is no change to the cover for that trip. If you activate and/or depart on or after 7 February 2024, the new Credit Card Insurances Product Disclosure Statement and Information Booklet will apply

Reply 1 Like

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henrus Dec 18, 2023 #9

$500 is easy enough, the increase in excess is more annoying.

Reply 2 Likes

s shmoozy1 Dec 18, 2023 #10

Looks like changes are coming to the activation requirements for the travel insurance on Commbank cards.

View image at the forums


Travel insurance included - CommBank

Explore international travel insurance benefits included with eligible CommBank credit cards when you activate your insurance in NetBank or the CommBank app.

View image at the forums


www.commbank.com.au

The real sting for me is not the $500 minimum spend. QF taxes on any FF redemption will swallow that whole. The excess increase really sucks and seriously devalues the "complementary cover". I had always figured that if insurance was going to cost $500 to buy with a $100 excess I was better off using CC coverage because even if I had one or even two claims the total cost was no more than $500 ($250 per).
The one claim calculation is now $500 so on a risk reward basis spending the money on a paid policy with a lower excess starts to make more economic sense. At two claims per trip its a total no brainer.
I have little doubt that other companies will follow suit if they say the change hasn't cost the CBA any customers.

Post automatically merged:

Does anyone find the language a bit confusing, about pre- and post- 7 February 2024?

E.g. what happens if you activate before 7 February but for a trip later that year.. would all the current conditions of the insurance apply, including no need to spend $500?

Overall I don't like this change. There was something very clean about activating the policy, getting the certificate and knowing you were covered.

Now it seems less clear as presumably the first question if any claim comes will be proving the $500 was spent and on what, potentially opening up an area for them to wriggle out of a claim.

Lots of sand traps that could leave you uncovered. $500 spend, activation, $500 excess - starts to sound like junk insurance.

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