New Insurance Loophole on Credit Cards

[marki]

Terrorism not covered in most credit card travel insurance.
This grabbed my attention as a frequent traveller to Europe. If my leg is injured as a result of any action I will be out of pocket. The sums involved in treatment are not small.

Terrorism not covered in most credit card travel insurance.

The high-end cards of two more institutions, American Express and Macquarie, offer no terrorism cover, except for limited compensation for injuries from terror-related transport accidents. However, these policies also do not offer hospital cover.

CBA does offer Terrorist cover.


There is a graph here showing the common cards.( below)

Below is the link to the Australian article "no cookies"
Sorry it looks weird but isn't ( unfortunately it's paywalled)

Nocookies

 

[MEL_Traveller]

That's a useful table! Easy to choose a card from one of the remaining ones that provide full cover. And something like ANZ only costs $79 a year.

As raised in another thread... I wonder what would happen anyway in the event of a terrorism attack and medical expenses. I imagine the state would cover it in a lot of cases... at least for the medical component. And depending where you were.

 

[Renato1]

Thanks. That is extremely interesting.

I can see why the insurers may want to limit cover on transportation matters. An attack at an airport would cost them a fortune due to delays to thousands of people.

But limiting cover on medical expenses seems very stingy, as it is unlikely that any individual insurance provider would wind up with anything but a minuscule number of victims.
Regards,
Renato

 

[OzEire]

I imagine the state would cover it in a lot of cases... at least for the medical component. And depending where you were.

By "the State" do you mean Medicare for Australians once they get back home, or the government of the country where an attack happened? Of course they will patch up all the victims at the scene but medical bills and transportation can go on.

As for which policy to have and rely on, the fine print will be important.

 

[MEL_Traveller]

By "the State" do you mean Medicare for Australians once they get back home, or the government of the country where an attack happened? Of course they will patch up all the victims at the scene but medical bills and transportation can go on.

As for which policy to have and rely on, the fine print will be important.

The state as in the country you are in. I'm guessing the level of care would depend where you are... Turkey might not give you the same as being in Germany. Would a hospital in the USA bill a terror victim? I'll have to ask my US friends about that.

There would be all sorts of incidentals... the flight for a family member to join you, and their accommodation if you required long-term hospitalisation.

 

[Dr Ralph]

This is NOT a loophole. This is a clearly stated term. Terrorist events or acts of civil unrest or war either authorised or otherwise have usually been excluded from policies. This is not new.

 

[serfty]

It is not just credit card based policies.

Common paid policies also generally exclude cover for "terrorism" events.

 

[kelvedon]

No need for terrorism insurance, Chanel 9 or Chanel 7 will cover your expenses in return for an exclusive.

 

[moa999]

Common paid policies also generally exclude cover for "terrorism" events

That was my next question

 

[UP4014]

It is not just credit card based policies.

Common paid policies also generally exclude cover for "terrorism" events.

A lot do and even cover you during a hijacking and pay a daily rate you're held hostage in a aircraft.

If I want a credit card I'll use a bank, if I want travel insurance I'll use an insurance company (and read the fine print), the worst is there is nearly a get out clause for every occasion.

 

[MEL_Traveller]

A lot do and even cover you during a hijacking and pay a daily rate you're held hostage in a aircraft.

If I want a credit card I'll use a bank, if I want travel insurance I'll use an insurance company (and read the fine print), the worst is there is nearly a get out clause for every occasion.

CC polices are provided by insurance companies. And as outlined by the OP, some credit cards provide better coverage than you can buy through an insurance company as they will cover terrorism. In many cases, much of the policy cost is commission.

Hijack cover is a bit of a legacy inclusion from the 70s. There have been so few of them in recent years, I think the insurance companies are pretty safe on that front.

 

[burmans]

This is NOT a loophole. This is a clearly stated term. Terrorist events or acts of civil unrest or war either authorised or otherwise have usually been excluded from policies. This is not new.

That was exactly my thoughts too, terrorism and civil unrest has been an exclusion on most policies like about forever, it just appears people are starting to look a bit closer at those policies!

 

[lovetravellingoz]

Not just CC Policies, but various paid TI Policies too.

I use the ANZ for this reason, plus that all my long international trips are made using points for flights. Some of the other cards are quite restrictive in that you have to buy the flight on them, or have earnt enough points on that particular card to have redeemed the flight.

Whereas activitating the ANZ is cheap and easy.

 

[lovetravellingoz]

PS: You need to read and understand any TI Policy for what you are covered and not covered. Insurance never covers you for everything, just like with many house insurance policies not covering for floods (from rain) or bushfires unless you pay extra.


With TI for example many people are blissfully unaware that their TI policy may not cover them when they think they are.

For example:

• They hire a motor bike or moped and do not posses an Australian Motorcycle License. In Thailand, Bali etc they will hire you a scooter despite you not having a bike license, but your TI will not cover you
• Have an accident when intoxicated? Check out your policy as it may exclude you
• Go on a Quad Bike Tour which are very popular . Some policies specifically exclude coverage for Quad bikes even if you have a bike license, or are even just the passenger (presumably as quad bikes are very unstable)

Always check the $$$$$ that each item of the TI covers for and decide if that is acceptable to you, including the excess amount.

 

[UP4014]

CC polices are provided by insurance companies. And as outlined by the OP, some credit cards provide better coverage than you can buy through an insurance company as they will cover terrorism. In many cases, much of the policy cost is commission.

Hijack cover is a bit of a legacy inclusion from the 70s. There have been so few of them in recent years, I think the insurance companies are pretty safe on that front.

And the Qantas Cash card is the Heritage Bank Limited but I wouldn't say that it's a faultless system.

 

[serfty]

I use an Travel Insurance Direct Annual policy.

That wont cover cancellation costs, travel delay cost or special event loss for a loss that arises from an act or threat of terrorism.

However, still covered are Medical/Repatriation/trip resumption/retuurn airfare costs as well as Death/Disability compensation.

 

[MEL_Traveller]

And the Qantas Cash card is the Heritage Bank Limited but I wouldn't say that it's a faultless system.

Yeah, but that's Qantas Loyalty... anything they touch you know is 100% driven by profit, and essentially free of competition (due to the shackles of status). So anything that comes from them I automatically assume is a bad deal unless proven otherwise.

The banks don't have a great reputation either, but competition helps keep some competitive products. And then some that just fall through the cracks, like ANZ platinum. Low limit, low annual fee, great insurance product with low trigger. But no points earning.

 

[get me outta here]

I have the same and am reassured by that.

I use an Travel Insurance Direct Annual policy.

That wont cover cancellation costs, travel delay cost or special event loss for a loss that arises from an act or threat of terrorism.

However, still covered are Medical/Repatriation/trip resumption/retuurn airfare costs as well as Death/Disability compensation.

 

[UP4014]

Yeah, but that's Qantas Loyalty... anything they touch you know is 100% driven by profit, and essentially free of competition (due to the shackles of status). So anything that comes from them I automatically assume is a bad deal unless proven otherwise.

The banks don't have a great reputation either, but competition helps keep some competitive products. And then some that just fall through the cracks, like ANZ platinum. Low limit, low annual fee, great insurance product with low trigger. But no points earning.

Yes indeed. But you are suggesting your credit card company who contracts out insurance isn't driven by profit.

 

[MEL_Traveller]

Yes indeed. But you are suggesting your credit card company who contracts out insurance isn't driven by profit.

It still is, but to a degree there's still some competition out there. Qantas loyalty flogs stuff to qantas frequent flyers desperate for points and driven by status. Banks don't have that same loyalty driver? People stick with banks because they're either getting a good deal, or they're lazy. With airlines, once you're in, you're in. Splitting points and spend between airlines isn't a viable option for a lot of people.