SCTI reports millions lost to Kiwi travel mishaps

Recurring issues highlighted

SCTI reports millions lost to Kiwi travel mishaps

Travel

By Roxanne Libatique

Southern Cross Travel Insurance (SCTI) has shared insights from 2024, highlighting the financial risks travellers face when unexpected events disrupt their plans.

The company reported payouts amounting to tens of millions of dollars for claims, including medical emergencies, trip cancellations, and property losses.

The most significant travel insurance claims in 2024

SCTI CEO Jo McCauley (pictured) said the most challenging claims in 2024 involved serious health issues requiring urgent medical attention. These included surgeries, air ambulance transfers, and logistical support for family members needing to travel to assist affected loved ones.

“We’ve had so many flus and respiratory illnesses pop up this year, along with multiple trips and falls, but our top claims have been very complex medical claims which can be distressing and challenging for everyone involved, and very, very costly. There are precious few of us who would be able to afford the care we’ve been able to pay for with customer claims,” she said.

She also highlighted the role of SCTI’s emergency assistance team, which is available around the clock to provide advice and coordinate responses during crises.

“I’m very grateful for the mahi from our emergency assistance team, available 24/7 for advice, logistics and coordination, and reassurance that expert help is available,” McCauley said.

Domestic travel insurance on the rise

While international insurance is often prioritised, SCTI noted an increase in domestic travel claims. From July 2022 to the end of 2024, the insurer paid out nearly $1.6 million in domestic claims.

Recent cases included a $26,000 claim after a traveller contracted COVID-19 and had to cancel a South Island tour.

Other domestic claims included:

  • $9,880: A traveller who fell ill before a domestic tour had to cancel their non-refundable trip after being declared unfit to travel
  • $5,740: A couple cancelled their Christchurch cycling tour when one contracted COVID-19
  • $12,000: A severe chest infection requiring hospitalization forced the cancellation of a planned journey

SCTI noted that domestic claims have reached an average of 84% of the value of international claims, with a slightly higher claim rate for domestic policies compared to international comprehensive policies.

Key trends in travel disruptions

The insurer highlighted several recurring issues:

  • Illnesses: Many claims arose from flu, pneumonia, and similar respiratory conditions, with younger travellers more frequently affected.
  • Accidents: Incidents like tripping while sightseeing were common, often resulting in injuries and hospital visits.
  • Unusual claims: The company also reported unusual incidents, such as thefts and injuries involving animals like monkeys in Asian destinations.

Travelers were encouraged to mitigate risks by practicing good hygiene, staying alert during activities, and ensuring they have adequate insurance coverage for all trips.

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