AAMI travel insurance

[overrun]

Two articles in recent press (Dec 2012) have got me concerned about AAMI.

One with a 26 week pregnant woman, got a doctor's certificate to travel, went into premature labour while in Canada, hospital bill was $700,000. AAMI didn’t pay, quoting their fine print about pregnancy not being covered. Ok tough one. I searched AAMI online and the exclusion is there but as an experienced and computer-literate traveller, I would have missed it. Not surprised this couple did. The AAMI story was that pregnancy is not covered to keep premiums low, but I reckon that they should be a lot more upfront about it and put that exclusion on the main part of the website. Something like “we have low premiums by excluding many common conditions like pregnant women”.

Second was much worse. Two young guys went overseas for a gap year – well, 6 months to UK. Got AAMI travel insurance. One came back after 4 months, and the other want to stay longer. Mother of the other rang AAMI and asked if she could extend the insurance to 8 months. AAMI said no, 6 months is our limit which is fair enough and clear on the website. Then they said that overseas son was no longer covered because his companion had gone home. What?

The premium has been paid – 2 people for 6 months. One goes home and so logically the risk reduces for the remaining traveller. In fact the remaining unused premium is now a bit excessive. Far from cancelling the insurance, logic says that AAMI should refund part of the premium and maintain the cover for the remaining person overseas (I am not expecting that of course – gracious is not a term that one usually associates with insurance companies).

But – cancelling the insurance of both people ! I searched the AAMI website and found nothing at all in the finest of fine print that warned about this. Disgusting. A case for the insurance ombudsman I reckon.

And I conclude the following – if AAMI can avoid paying by dragging up clauses which are not disclosed or logical, they will.

Trust AAMI? You are an idiot.

 

[Moopere]

...went into premature labour while in Canada, hospital bill was $700,000.

I'm sorry to immediately take this OT - but honestly .. where is the world going when a pregnancy/birth issue can cost $700K? Seriously, I know things can get complicated, and particularly so with premature births, but 700,000$? Really?

Are women and their families in Canada (or here???) actually paying this? Or is this like the quote you'll get out of a smash repairer once he realises you're there for an insurance job?

 

[overrun]

I'm sorry to immediately take this OT - but honestly .. where is the world going when a pregnancy/birth issue can cost $700K?

I found the article again from the Australian:
Last year John Kan and Rachel Evans, from Willoughby in Sydney, faced a hospital bill of up to $1 million after Ms Evans went into premature labour in Canada at 26 weeks and found her travel insurance didn't cover the labour or the baby Piper's hospital care.
The couple was charged $8120 a day ($730,800) for the 90 days Piper spent in the neonatal ward, not including doctors and specialist fees.


This seems to be pretty consistent with other reports about North American charges. When I was there last month, I heard that Canada has a superb and free health system provided you are Canadian, but if you are from outside Canada then it rivals the USA in the charges.

 

[stewiejp]

The pregnant couple really should have researched insurance for pregnant families. Sorry but it's their fault.

The 2 lads in the UK IMO overrun is right, great case for the Ombudsman, and a really good way to get it sorted quickly unless there is something in the fine print which seems not.

 

[straitman]

The pregnant couple really should have researched insurance for pregnant families. Sorry but it's their fault.

Yes and no.

The couple probably should have researched better but the insurance companies are very good at hiding behind fine print.