Terrorism and Travel Insurance

What you need to know about about terror events and how they may affect your travel insurance.

Terrorism and Travel Insurance

If you’re reading this, there’s a good chance you’re probably concerned about the threat of terrorist attacks while travelling overseas and if so, you’re not alone.

Since the September 11 attacks in New York City in the United States, the threat of terrorism has sadly become one of the leading fears for many travellers planning an international holiday.

Targeted attacks on popular tourist destinations like the Bastille Day tragedy in Nice, multiple shootings and stabbings in the United Kingdom, and the infamous Bali bombings as far back as 2002 have understandably made many Australians think twice about taking a trip overseas.

Just like natural disasters or accidents, we can never be certain when or where the next attack might happen. However, knowing what to do in the event of a terror attack and understanding how travel insurance may assist you in an emergency situation can help you stay safe overseas, and to know what you can be covered for if a terrorist attack does unfortunately occur.

Read on for the answers to the most frequently asked questions when it comes to terrorist attacks and how travel insurance fits into the picture.

It’s important to understand what is and isn’t covered when it comes to your travel insurance policy. One subject you may be confused about is terrorism – does travel insurance provide cover if your travel destination is affected?

Terrorist attacks have taken place in various popular travel destinations in recent years – including in Paris, Bangkok, Indonesia, Turkey, Barcelona, and London.

It’s important to be aware of these risks, and follow government advice when considering your next travel destination.

Travel insurance can provide cover for a range of unexpected emergencies, including becoming injured or sick overseas or having to suddenly return home due to the death or sickness of a close relative. The Product Disclosure Statement (PDS) for your travel insurance policy will provide in-depth information about what situations are covered, and any exceptions that may apply.

But these can be complex – to help make it simple, we’ve pulled out some of the key information you need to know to better understand how terrorism, and travel warnings about terrorism, affect your travel insurance coverage.

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Travel tips to prepare for a safe and happy holiday

There are a few things you can do to prepare before leaving home to help your future self if something does go wrong on your holiday:

Check current travel warnings

Check that the countries you’re travelling to are not listed as ‘Reconsider your need to travel’ or ‘Do not travel’ or words to that effect by Smartraveller.

Get the right advice

Purchase a travel insurance policy directly with the travel insurance company to make sure you get the correct information (and avoid paying travel agent fees!).

Make digital copies

Scan, print and keep digital copies of all your travel documents handy.

Save important contacts

Save the address and phone number of the nearest Australian Embassy or Consulate as well as the Australian Government 24 hour consular assistance number: +61 2 6261 3305

Subscribe to Smart Traveller

Download the app or subscribe to Smart Traveller email bulletins for up-to-date travel alerts and warnings.

Stay connected on social media

Follow your travel insurance provider on Facebook and Twitter.

Is it still safe to travel overseas with the threat of terrorism?

With recent tragedies in international travel destinations like Paris, Istanbul, London and Brussels, it’s no wonder many travellers are hesitant to leave home these days.

Countless publicised bombings in airports, train and bus stations by extremist groups like ISIS, Al-Qaeda and the Taliban have also made the act of travelling itself seem more dangerous than ever.

However, the threat of terrorism shouldn’t necessarily deter you from overseas travel if you want to see the world. There are still millions of Australian travellers that head overseas every year and have a wonderful time without any incidents.

Illness is still by far the leading cause of death for Australian travellers overseas. In fact, a report from the Australian Department of Foreign Affairs and Trade indicated that illnesses were responsible for 25 per cent of all overseas deaths in 2013.

This means that poor traveller health has been the cause of more deaths than anything else including natural disasters, violent crime, transport accidents and terrorism.

So if you suffer from any pre-existing medical conditions, it might be worth checking that your travel insurance policy covers that condition before purchasing the policy and heading off on your overseas trip.

What does travel insurance cover in the event of a terror attack?

A travel insurance policy may cover expenses such as:

  • Overseas emergency medical treatment and hospitalisation
  • Medical evacuation and repatriation
  • Emergency medical transport
  • Loss or damage to luggage and personal effects
  • Theft of travel documents, credit cards and travellers cheques

It may also include other benefits such as:

  • 24 hour emergency medical assistance
  • Rental vehicle excess insurance
  • Personal liability insurance
  • Permanent disability insurance
  • Loss of income insurance
  • Accidental death insurance

Every insurance company will have a different set of inclusions and exclusions, so remember to read the Product Disclosure Statement (PDS) carefully before you buy travel insurance.

Are medical expenses from terrorism covered by travel insurance?

A number of insurers do provide cover for overseas medical and hospital expenses caused by an act of terrorism, including the cost of emergency medical evacuation.

Cover for unexpected medical emergencies is vital. It ensures you are not left with a huge amount of debt after receiving overseas medical care.

Regardless of whether your travel insurance policy provides cover for terrorism, it’s important to consider a policy with adequate medical coverage in case you become sick or injured for any reason.

Are cancellations and travel delays caused by terrorism covered?

Most travel insurance policies exclude cover for cancellation fees and lost deposits, travel delays, or special event transport expenses if the cause for this is terrorism.

What is considered terrorism by travel insurance?

In relation to terrorism, travel insurance often refers to:

  • An act or threat of terrorism.
  • A terrorist act or use of military force or other intervention by a government or official authority to intercept, prevent, or mitigate a terrorist act.
  • An event which is verified or recognised by the government as an act of terrorism, or defined as such by any relevant legislation.

Travel insurers may have a different definition of terrorism. Check the 'Words with Special Meanings' section of the PDS before purchasing a policy.

Is terrorism covered by travel insurance?

Not all travel insurance policies provide cover for terrorism-related incidents.

You may find that travel insurance has either:

  • A blanket ‘General Exclusion’ in relation to any threat or act of terrorism.
  • Limited cover with restrictions on benefits such as cancellation fees, lost deposits, and travel delays.

If terrorism is excluded entirely, this means you will not have cover for any expenses related to a threat of terrorist attack or incident.

If you have limited cover, you may still have cover for overseas medical expenses and emergency evacuation if you are injured in a terrorist incident.

Why do I need to purchase travel insurance?

Accidents, natural disasters and even terror attacks can happen anywhere in the world, including on home soil, as evidenced by the Sydney Hostage Crisis at the Lindt Café in 2014.

In Australia, we’re fortunate to have a public health care system and private health insurance companies to assist with emergency medical costs and hospital bills. However, while overseas, you may not be covered for medical costs unless you’ve purchased a travel insurance policy.

Travel insurance includes 24 hour emergency assistance as well as cover for the cost of medical treatment and hospital expenses that arise overseas. It may also cover the cost of emergency transport if you need to be medically evacuated or even repatriated home.

Depending on your cover type, some travel insurers may also provide other financial benefits such as cancellation cover for lost deposits and tour operator fees if you have to cancel your trip or return directly home for an unexpected reason.

Keep in mind that most insurance companies may exclude some benefits for terrorism-related incidents, so it’s important to always read the PDS if you're unsure.

It’s also generally better to buy travel insurance direct from the insurer so you can ask questions and get the correct information, not to mention save on travel agent or tour operator fees!

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Important points:

  • Your travel insurance policy may still cover medical and evacuation expenses resulting from terrorism.
  • Travel insurance may not cover travel to various destinations which the Australian Government identifies as posing a high risk to travellers.
  • Terrorism may be a General Exclusion which means there is no cover whatsoever for any claims which arise from an act or threat of terrorism.

How does having travel insurance help me in a terrorist attack?

Although statistically you’re far more likely to make an insurance claim for petty theft or lost luggage than you are for any terrorism-related events, one of the many benefits of purchasing travel insurance is that it may also provide cover for emergency evacuation and overseas medical expenses that arise as a result of a terrorist attack overseas.

This may include medical evacuation and emergency transport, or even funeral or cremation expenses and the cost of returning your remains home to Australia if the worst should happen and you are killed overseas.

Travel insurance can also connect travellers with a direct 24 Hour Emergency Assistance helpline which you can contact for travel advice or medical assistance anywhere in the world.

If you’re nervous about travelling overseas on holidays or a working holiday visa, knowing you’ll have 24 hour access to the right advice and assistance in an emergency situation can also help to set your mind at ease.

Do all travel insurance policies cover terrorism?

If cover for terror attacks is your main priority when comparing travel insurance policies, keep in mind that some insurers may list acts or threats of terrorism in their General Exclusions section. This means no claims that arise from any terrorism-related events would be paid.

Other travel insurers may still provide overseas medical cover if you’re injured in an attack or need to be medically evacuated for treatment, but may not pay cancellation or special event transport expenses if you voluntarily choose to cancel, change, or delay your travel plans because of a terrorist threat.

You can use insurance comparison websites to get a snapshot of the benefits offered, but you should always read the Product Disclosure Statement so you know exactly what is and isn’t covered before you buy travel insurance.

Read our Compare Travel Insurance guide for more tips.

How do I know if my travel insurance policy covers terrorism?

Each travel insurance policy will have a different set of exclusions and benefits, so it’s always best to carefully consider the Product Disclosure Statement (including policy wording) to decide if a policy is right for you. You can read it online or request a hard copy to be mailed out to you.

Familiarise yourself with the list of General Exclusions and check the fine print for any specific terrorism-related exclusions or limits relating to:

  • Emergency overseas medical and hospital expenses
  • Cancellation cover
  • Travel delay expenses
  • Special event transport expenses
  • Evacuation and repatriation expenses
  • Accidental death and disability insurance

Keep in mind insurance companies may also take into account any advisories issued by the Australian Government and exclude cover if you ignore the Smartraveller travel warnings.

What are travel alerts and advisories?

The Australian Government website Smartraveller uses four levels to assess the threats that a traveller may face in different destinations:

LEVEL 1

Exercise normal safety precautions

This advisory indicates that the destination is similar with regards to risk as any other regular city in Australia. Normal safety precautions should be observed.

LEVEL 2

Exercise a high degree of caution

This advisory does not suggest you reconsider your travel plans. However, there may be a reason to be more vigilant than you would at other travel destinations. This means ensuring you are alert and take care for your personal safety.

LEVEL 3

Reconsider your need to travel

This advisory means the Australian Government considers the destination to be unsafe for the majority of travellers, and recommends cancelling or deferring your trip if possible. If you are already at the destination, you should try to leave as soon as possible. There are dangerous and potentially life-threatening risks in these regions which could include:

  • An ongoing threat of terrorism, current civil unrest, kidnapping or a high occurrence of violent crime,
  • A serious health and safety concern, including the COVID-19 pandemic,
  • A significant but temporary event such as a natural disaster, including an earthquake or tsunami.

If you still choose to travel to these destinations, you need to make sure that you take reasonable measures to stay safe and reduce your risks.

Your travel insurer may may provide limited cover for instances unrelated to the reasons the destination is considered a high risk. However, some travel insurers will not provide any cover at all for destinations with a ‘Reconsider Your Need To Travel’ advisory.

LEVEL 4

Do not travel

This advisory means you should not travel to this destination.

The destinations are likely to be highly dangerous, possibly due to a high threat of terrorism, ongoing armed conflict, violent political unrest, or critical levels of violent crime. You travel to this destination at your own risk, and should not expect consular assistance or travel insurance to cover you if you run into an emergency.

Your policy may exclude cover for countries or regions that have a ‘Do not travel’ rating, which could be due to the high risk of terror attack. This means that if you decide to visit a level four listed country, you may not be covered under your policy.

Visit Smartraveller.gov.au to check the advisory level of the country you intend to travel to, then check the PDS or ask your travel insurer what level is covered under their policies.

If a warning is issued or a region is upgraded to level four when you’re already overseas, you may have provision to claim for cancellation costs or fees involved in changing your travel plans to evacuate the area immediately.

If you’ve already purchased travel insurance but haven’t yet left home when a new warning is issued, you may also be covered under your policy for cancelling or delaying your trip until it’s safe to travel again.

If something does go wrong, find the latest updates and what you’re covered for in our Travel Alerts page.

Read our guide: 'What Are Smartraveller Travel Advisories?' for more information about what each of the different travel alert levels mean.

How do I choose a safe travel destination?

The Australian Government website Smart Traveller posts the latest travel warnings and security status updates. It also has a wealth of travel advice you should read before venturing overseas, including the most common risks in different regions and how to avoid or minimise them.

If you’re still feeling a bit anxious and want to opt for the safest possible destination for your next overseas holiday, check out the table below to compare the 10 safest countries to visit with the 10 most dangerous countries to avoid.

Nordic countries consistently top the list as some of the safest travel destinations in the world, but if you’re looking for a travel destination that’s closer to home, why not pop over and visit our friendly neighbours in New Zealand?

At the opposite end of the scale, if you’re concerned about safety you may wish to avoid parts of Africa and Middle Eastern regions which have a much higher threat of terrorism.

 

The 10 safest countries in the world*

1. Iceland
2. Denmark
3. Austria
4. New Zealand
5. Portugal
6. Czech Republic
7. Switzerland
8. Canada
9. Japan
10. Slovenia

The 10 deadliest destinations for terror attacks*

1. Iraq
2. Syria
3. Nigeria
4. Afghanistan
5, Yemen
6. Pakistan
7. Libya
8. Egypt
9. Somalia 
 10. Ukraine

What are travel warnings?

The Australian government issues travel warnings as advisories from the Department of Foreign Affairs and Trade (DFAT). The purpose of this travel advice is to provide Australian travellers, and Australians living overseas, with information about the potential threat and risks they might come across.

The types of information included in these travel warnings cover include threats to security, safety, health or natural disasters.

Before you travel, you should check the travel advice on the Australian government’s website smartraveller.gov.au. This way, you will be aware of the risks you may be taking and can make informed decisions about where and when you travel.​

How do travel warnings affect travel insurance?

The information on Smart Traveller has a major impact on your travel insurance policy coverage.

Insurers will generally not provide cover if you visit destinations that have a travel warning in place of ‘Do Not Travel’.

It is important that you read your Product Disclosure Statement (PDS) and ensure your travel insurer provides cover for the destination you are travelling to. Not all destinations will be covered.

For more information about the different travel warning levels, read our article Smartraveller Travel Advisories and Advice Explained.

Know what you are and aren’t covered for before you travel

Travel insurance can provide cover for a range of emergencies. Unfortunately, terrorism may not be covered by various travel insurers.

It’s important to know what risks you face while travelling, and how this will affect your travel insurance coverage.

Check smartraveller.gov.au to ensure your travel insurance will provide cover at your chosen destination and always read your insurer’s Product Disclosure Statement (PDS).

 

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^ Price as at 20/03/2024 compared to the price calculated today for this policy.

* See Product Disclosure Statement for full terms and conditions and exclusions and limits that apply.