Top Reasons Travel Insurance Claims Get Denied (And How to Avoid Them)
Nobody likes having a claim declined. Understanding the top reasons claims get held up or denied will help you protect your holiday and your wallet.
1. Unattended Luggage
If your backpack or phone was stolen while left unattended on a beach towel, train seat, or cafe chair, insurers will likely reject the claim due to the "failure to take reasonable care" clause.
- ✓Keep valuables on your person or locked in a hotel safe.
- ✓Always file a local police report within 24 hours of any theft.
2. Buying Insurance Too Late ("Known Events")
Insurers do not cover events that were already in the public domain or widely reported in the media before you bought your policy (e.g., announced strikes or active cyclones).
- ✓Buy cover as soon as you book non-refundable travel.
3. Alcohol and Drugs
Almost every Australian PDS excludes incidents, injuries, or losses that occur while the policyholder is under the influence of alcohol or non-prescribed drugs.
- ✓Be aware that hospital blood tests will be reviewed by claims assessors.
Frequently Asked Questions
What should I do if my claim is unfairly rejected?
You can request an internal dispute review with your insurer. If unresolved, you can escalate the matter to the Australian Financial Complaints Authority (AFCA) for free independent review.
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General advice only. Please read your insurer's Product Disclosure Statement (PDS) to ensure a policy meets your personal needs before purchasing.