Australian schoolies 'abandoned' by insurers

Stranded teens are worried they'll run out of money in a foreign country

Australian schoolies 'abandoned' by insurers

Insurance News

By Mina Martin

Mount Agung finally erupted, spewing an ash cloud which prompted the Indonesian government to cancel inbound and outbound flights. This left thousands of travellers stranded and possibly uninsured for the event.

Many stranded travellers face insurance trouble because of coverage restrictions set by Australian travel insurers. Among the worried travellers are an estimated 6,000 Australian teens, who flocked to the island during Schoolies Week. 

The young Australian school leavers trapped in Bali, where a smoking volcano could produce a full lava eruption at any moment, said they've been abandoned by their insurers, as they see their funds for food and accommodations dwindle, AAP and AP reported.  

“They don’t really tell you that you’re not covered by the insurance for the volcano, you’re just left in the dark,” 19-year-old Emily Martin told AAP

“I cried my eyes out,” said Dannielle Hicks, also 19, who was understandably upset when she realised she would run out of money in a foreign country.

A number of insurers stated that they would only receive claims for policies bought up to nine weeks ago – before a volcano alert was issued. Some insurers set Sept. 22 as the cut-off coverage date, when the alert was raised to level four, suggesting an imminent eruption; and others, including Cover-More, refused to cover travellers whose policies were bought on or after Sept. 18, when the alert was raised from normal to 'vigilance'.

There are also insurers who said they would accept claims for policies bought before Nov. 22. 

“We’ve spoken to a number of school leavers who have concerns about not being able to get home,” Red Frogs locations leader Nickey Bright told AAP. Red Frogs is an Australian support network for post-school partygoers.

“It’s very different when you’re here by choice and when you’re here and you feel like you can’t get home,” Bright said.

Mount Agung continues to spit ash up to 400m high, and according to Indonesia's geological service CVGHM, its potential for a large eruption is increasing, AAP and AP reported.


Related stories:
Insurance trouble for stranded Australian travellers
Insurance confusion over Mount Agung eruption

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