Please Note - If you are cruising around Australia you need to select Pacific.
With Regions, variances can apply for Bali, Indonesia, Japan and Middle East.
You are not required to enter stop-over countries if your stop-over is less than 48 hours.
If you think travel insurance covers insolvency you’re not alone. Most travellers expect their insurance to cover airfares, tour bookings and accommodation if a company collapses – but unfortunately, and to quote the Rolling Stones… you can’t always get what you want.
Most standard policies do not provide protection for insolvency, collapse or default of airlines, travel agents, wholesalers, cruise operators, tour operators, hotels, car hire companies, railways or theme parks.
Trying to get your head around what insurers mean when they say ‘they DO cover for insolvency of a travel service provider’, but DO NOT cover for financial collapse of any transport, tour or accommodation provider is tricky to say the least’.
Don’t worry it’s not all bad news – you can get what you need. You just need to know where to look and that’s where we come in. We’ve put together a table explaining who-covers-what below to make it easier to understand. SCROLL FOR MORE INFORMATION.
|AIG||AIG Australia Limited|| Provides reimbursement of reasonable costs to assist you should there be a Financial Default of Your travel services provider.
This does not include travel agents, tour wholesaler, tour operator or booking agents. Read page 40 of the PDS.
|Aussie Travel Insurance||Allianz Australia Insurance Limited|| You are covered for the financial collapse or Insolvency of any transport, tour or accommodation provider. They will pay the value of the unused arrangements, less any refunds due to you, if you have to cancel any prepaid transport or accommodation arrangements booked for your Journey. They will also pay the travel agent’s cancellation fees with a maximum of $2,000 for Single cover, $2,000 per person for Duo cover, $4,000 for Family cover and $2,000 for Individual cover.
No cover for claims caused by the financial collapse or Insolvency of any transport, tour or accommodation provider. Read page 38 of the PDS.
|Go insurance||Certain underwriters at LLoyd's|| Cover for the cost of travel, accommodation, car hire and excursions paid or contracted to be paid by You to organisations unrelated to the failed Travel Service Provider in respect of the Trip; or the Reasonable cost of alternative arrangements for You to reach Your destination. In the event Your Trip is curtailed, You are covered for the Reasonable cost of alternative arrangements for You to reach Your pre-booked destination or return to Your Normal Country of Residence.
Exclusions: 1. Financial Default of any travel agent, tour wholesaler, tour operator or booking agent. 2. Financial Default of a Travel Service Provider if at the time of booking Your Trip and/or purchasing Your policy, the Financial Default had already occurred or a reasonable person would expect to occur. 3. Any claim excluded by the General Exclusions applicable to this policy. Read page 17 of the PDS.
|Insure4Less||Certain underwriters at LLoyd's|| Travel carrier cover only Up to $5000 on Excel Plus policy only.
Not Travel agents, Tour operators or Booking agents. Read page 9 of the PDS.
|InsureandGo||Mitsui Sumitomo Insurance Company Limited|| They pay up to $1000 in their comprehensive policy for financial default of a travel services provider, which typically refers to claims relating to airfares. They do not cover for financial default of any travel agent, tour wholesaler, tour operator or booking agent. You must get written confirmation from the liquidator or equivalent person or authority that the travel services provider has suffered financial default.
Exclusions apply. Please read page 35 PDS for full details.
|Qantas||Certain underwriters at LLoyd's|| Cover for a member of your travel party is affected by any form of insolvency.
Not covered for insolvency of a Travel agent, hotel or resort operators, cruise liners etc. Read page 18 of the PDS.
|Sure Save||XL Insurance Company SE|| Cover for any unused, pre-booked accommodation, prepaid transport, prepaid tours and prepaid tickets to public events that you can’t use as a result of the insolvency. Cover to rearrange any pre-booked accommodation, prepaid transport, prepaid tours and prepaid tickets to public events, including bookings made with frequent flyer points.
Not cover for insolvency was caused directly or indirectly by war or civil commotion, or that was not unforeseen at the time of purchase. Read page 48 of the PDS.
For more info click here.
|Tick Insurance||Mitsui Sumitomo Insurance Company Limited|| Cover for financial default of a travel service provider up to $1000 for the reasonable costs for you to arrange the same or a similar standard of transport and accommodation.
Not covered for financial default of any travel agent, tour wholesaler, tour operator or booking agents. Read page 37 of the PDS.
|Travel Insurance Saver||Certain underwriters at LLoyd's|| Cover for the value of unused prepaid accommodation, transport or tour; or the reasonable cost of additional expenses you incur in rearranging your accommodation, transport or tour.
Exclusions apply. Read page 65 of the PDS for full details.
|Travel Insuranz||Berkshire Hathaway Speciality Insurance|| Cover for insolvency of a Travel Carrier which typically refers to claims relating to airfares.
You are not covered for the insolvency of any travel agent, tour wholesaler, tour operator or booking agent. Read page 9 of the PDS.
|Webjet||Allianz Australia Insurance Limited|| Cover Travel Service Provider insolvency only, up to $10,000 on Single Comprehensive Policy.
No cover for the financial collapse or insolvency of any service provider; read page 19 of the PDS.
If you’re a do-it-book-it yourself kind of traveller and buy your flights direct with an airline then you’ll be the most vulnerable when it comes to protection. If you use a travel agent to book your holiday and the airline goes bust, you might be able to get a refund through the agent, or they may be able to help get you home if you’re stranded overseas.
Even if you do tend to book your travel arrangements yourself, a good way to ensure protection is to pay using a credit card. The credit card company might be able to recover your money or you might be able to claim under your credit card insurance. Try not to buy your travel arrangements using a debit card as they don’t provide the same level of protection.
In some states and territories programs are in place where you may be able to apply for compensation for insolvent companies. Contact the Australian Competition and Consumer Commission for more information.
We’ve simplified the insurers' policy wording in the table above, but this doesn’t mean you can get away without reading it. We know it’s not a great read but it’s really important to understand the cover you’re purchasing – so give your insurers PDS a read! If you’re not sure that you understand the conditions you can always call the insurer for advice before buying online.
Shop around for insurance to make sure you are getting the right cover for your travel needs. You can use comparetravelinsurance.com.au to compare over 20 Aussie insurers in seconds. Yippee!
An insolvent company is one that is unable to pay its debts when they are due. The three most common insolvency procedures are voluntary administration, liquidation and receivership.
Carolina has been working exclusively in the travel insurance industry for over two years. With a customer consultancy background and currently studying law, she is a fine-print wizard who loves helping travellers find a policy that actually works for them. Speaking two languages and having travelled all over the world, Carolina discovered that she is not cut out for working holidays after a stint on her grandparents’ southern Vietnam farm, and is definitely a lounge-by-the-pool kind of lady.