Drinking and Your Travel Insurance: What You Need to Know
If alcohol consumption affects travel insurance coverage.
Let's face it, going on holiday often means enjoying a few drinks. But what happens if you have a little too much to drink and something goes wrong? Will your travel insurance still cover you? Let's find out.
Does Travel Insurance Cover Booze?
Here's the deal: having a couple of drinks won't invalidate your entire travel insurance policy. But travel insurance won't cover you for events that occur when you're under the influence. So if you break your leg after sliding down some stairs after a few drinks at a wedding, your insurer could deny your claim for medical expenses.
When Travel Insurance Holds Back
So when does travel insurance hold back on covering you? It's all about the alcohol exclusion. Here are some examples:
- Example 1: Let's say you're enjoying a wedding in Phuket, Thailand, and after a few alcoholic drinks, you fall down some stairs and break your leg and several ribs. Your insurer may refuse your claim for medical expenses because of your intoxication.
- Example 2: Some insurers specify a blood alcohol limit over which they won't cover you. For instance, GoInsurance uses a 0.10% limit, which is double the legal driving limit. Others, like Cover-More, specify a 0.19% limit. Needless to say, walking straight might be a challenge at those levels.
- Example 3: Many insurers don't specify a limit, but if they think the amount you drank contributed to your claim, they might try to deny it, using their own definition of impairment.
How Insurers Determine Your Consumption
Crafty, huh? How do insurers determine how much you drank? Some policies require you to agree to a blood alcohol or breath analysis if they suspect you've had a few drinks. If they can't get a BAC test in time, they might use other methods – like bar receipts, witness testimony, medical reports, or even how you describe the events to them.
When the Drink is Spiked or It's Drugs
Drink spiking is a concern, and there's also the issue of some drinks containing methanol – a toxic substance used as a cheap substitute for alcohol. But if you're heavily intoxicated, it can be difficult to prove that your drink was spiked. Be vigilant, though – Smartraveller offers some handy tips on avoiding drink spiking.
Recreational drug use is still often excluded from cover, so check local laws where you're traveling and steer clear.
Disputing a Claim Denial
If your insurer denies your claim because they believe you were drunk, don't throw in the towel. First, lodge an internal dispute with your insurer. Check their website or policy for their complaints procedure. If they still deny your claim, take it up with the Australian Financial Complaints Authority (AFCA).
The Financial Ombudsman Service, AFCA's predecessor, once ruled that an insurer couldn't rely on the alcohol exclusion to deny a claim for a woman who left a backpack in a taxi after a few drinks. The ruling stated that there was no evidence to suggest the woman was under the influence of alcohol when she lost her belongings.
In Conclusion
Travel insurance protects you from unforeseen events, but they expect you to use common sense and avoid risky behavior. Overindulging in alcohol can make you vulnerable and risk losing your coverage. It's crucial to read the fine print and understand your policy to avoid tricky situations on your holiday.
- Your choice to indulge in alcohol while traveling should be made thoughtfully, as some lifestyle decisions can affect your travel insurance coverage; for instance, if you break a bone after being intoxicated, your insurer may not cover the medical expenses.
- Travel insurance policies may have specific exclusions for incidents related to alcohol consumption, such as falling down stairs or participating in reckless activities, which could lead to a denied claim if the insurer believes you were under the influence.
