Changes to Travel Insurance Activation

[SeaWolf]

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

From 7 February 2024, you will need to spend $500 in a single transaction on your prepaid travel costs using your eligible credit card and activate to receive any cover.

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.

www.commbank.com.au

 

[CaptJCool]

Well kinda sad the easy days are over !

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

 

[theblank]

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.

 

[burmans]

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

 

[Bindibuys]

Just activated for all my 2024 trips.

 

[Airlinedealschris]

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.

 

[Ripcurlgirl]

Just activated for all my 2024 trips.

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

 

[Oubline]

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.

 

[Ripcurlgirl]

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

 

[henrus]

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

 

[shmoozy1]

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

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.

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: Dec 18, 2023

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.

 

[jkbaus]

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 thought wording may have been ambiguous.
I phoned and confirmed no $500 required and current PDS for activate now and travel August.

 

[Tad R J]

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

Looks to me that the changes do not apply if you activate AND depart before 7 Feb 2024. Or you depart before 7 Feb 2024 ... without activating before that date.
The "and depart..." appears to be the key requirement.

 

[shmoozy1]

Looks to me that the changes do not apply if you activate AND depart before 7 Feb 2024. Or you depart before 7 Feb 2024 ... without activating before that date.
The "and depart..." appears to be the key requirement.

I don't think your interpretation of and/or is correct. You either activate (for travel anytime post Feb) before 7 Feb or you activate and depart before 7 Feb and your travel returns you to Aus post 7 Feb. Either way you are covered under the old rules.

 

[amp-qld]

The original statement is clear: either activating and/or travelling will do. It's the article that confuses things by leaving out the "or". I'm not sure yet how badly this will affect me but I've already activated it for five trips from tomorrow to next August.

 

[CaptJCool]

Do CBA use Covermore ?

Most insurers pay healthy commissions because claims are relatively low

 

[henrus]

Do CBA use Covermore ?

Yes they do.

 

[straitman]

Having read the whole thread I have to say that I find the wording ambiguous.
I have several trips booked with insurance activated but am unsure how they are affected.
I will seek an explanation upon returning to Australia from my current trip.

 

[David Bungendore]

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

Not

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

Not necessarily. Just returned from a week touring NZ. Flights on points, car hire only $350 and never spent more than two nights in one hotel and mostly in regional areas. Largest cost I used Accor points for anyway. Wouldn't have qualified for what is a simple legitimate holiday.

 

[garrence]

The ANZ black credit card travel insurance now seems more competitive - $250 pre-paid (flights, hotels, etc) spend for eligibility, and has a lower $350 excess on medical.