A recent survey revealed that 70 per cent of Australian travelers are unsure whether their travel insurance will cover them if they have an accident overseas while intoxicated.
The survey came after several Australian travelers had their travel insurance claims denied due to intoxication.
The recent case which saw off-duty police officer Ella Cutler suffer a disastrous fall while on holiday in Croatia made the news here in Western Australia.
Ella Cutler suffered terrible injuries, including fractures to her head, spine, limbs and ribs when she fell from the Pile Gate in Dubrovnik. The crash resulted in more than $400,000 in medical treatment and air ambulance fees, but, although she had travel insurance, her claim was denied because she was intoxicated when the accident occurred.
He finally returned home after his family raised money via a GoFundMe page to cover the medical bills and air evacuation to get him home.
Natalie Ball, director of Comparetravelinsurance.com.au who conducted the survey, says it is vital for travelers to understand any relevant clauses that could affect their claims.
“It’s devastating to hear of these accidents happening to Australians overseas. It’s shocking that our survey results show that so many Australians aren’t clear about whether travel insurance covers you when you’re intoxicated.”
Ball emphasizes that insurers won’t deny a claim just because you consumed alcohol, but insurers can deny claims that result from your judgment being impaired due to intoxication.
“It is important for travelers to understand that having a glass of wine with dinner or a Pina Colada at the pool is unlikely to be seen in the same light as consuming seven beers or several cocktails. They are the levels of intoxication that can have a impact on your coverage”.
How much is too much?
Some insurers provide specific blood alcohol levels at which they will limit coverage while others are more general in their definition.
However, if alcohol is found to be a contributing factor in a claim, you may not be covered.
Ball says exclusions and clauses surrounding alcohol consumption differ between insurers.
“The number of drinks you can safely consume is subjective due to factors such as the size of the pour, the percentage of alcohol and your individual tolerance. Insurers usually consider your individual circumstances and whether the alcohol is a contributing factor to the event. If it is found that alcohol has impaired your judgment, coverage is likely to be affected.”
“On the other hand, if you were intoxicated, but your blood alcohol levels were not found to contribute to your claim, you may still be covered.”
Insurers have varying limits on what they consider acceptable. Some list a specific blood alcohol concentration (BAC) at which they limit coverage. For example, Cover-More, NRMA and Budget Direct define impairment at a blood alcohol concentration level of 0.19 percent or above.
Ball says that while understanding these different exclusions can be helpful, the key thing to remember is common sense.
“Clearly, consuming alcohol can impair your judgment, increasing your susceptibility to risk. While a few drinks may not affect your claim in the event of a flight delay or cancellation due to weather, you may face denial of coverage in the event of a medical emergency if you’re tripping drunk.
Useful tips for responsible alcohol consumption
Know your limits: Be aware of your alcohol tolerance and understand the potential impact on your judgment.
Stay hydrated: Alternate alcoholic beverages with water or low-alcohol beverages to stay hydrated and reduce the risk of overconsumption.
Plan your transportation: Prearrange transportation or use rideshare services to ensure a safe trip back to accommodation.
Understand local laws: Familiarize yourself with local alcohol regulations and legal limits to avoid unintentional violations.
