29 January 2016
CHOICE is warning consumers to think carefully before purchasing pre-ticked travel insurance following an ASIC investigation that found Tigerair misled customers into thinking they were covered for flight delays when they weren't.
The ASIC investigation found customers who purchased pre-ticked travel insurance online through Tigerair were not covered for expenses in the case of flight cancellations or delays, contrary to the airline's claims.
"While it's important to have international travel insurance, purchasing the wrong policy can leave you high and dry and thousands of dollars out of pocket," says CHOICE spokesperson Tom Godfrey.
The ASIC findings come in the wake of a recent CHOICE investigation that found Virgin, Tigerair and Jetstar were the worst offenders when it comes to forcing pre-ticked travel insurance on customers during the checkout process.
"Don't let yourself be tricked by the airlines' one-size-fits-all travel insurance. Buying travel insurance is not like dropping a bag of flour into your online shopping trolley," says Mr Godfrey.
"Given it would take the average reader over an hour to digest a 15,000 word travel insurance Product Disclosure Statement (PDS), it's impossible to know where you stand before an airline's 10 minute flight payment screen times out."
"It's particularly important for consumers with pre-existing medical conditions to take their time to read the detail of the policy and if in doubt contact their insurer to find out what is, and isn't covered."
"This latest incident with Tigerair is yet another example of why the airlines' should ditch pre-ticked extras," Mr Godfrey says.
Tigerinsure's current and previous policy holders can contact ACE Insurance on 1800 803 548 for a full refund.
Top tips for travel insurance:
- Take the time to read the PDS (Product Disclosure Statement) to see if it works for you
- Check you're covered for any extra activities you plan to do, like jumping out of a plane or jumping on a motorbike
- Going to party hard? You probably won't be covered after that second or third margarita
- Beware of sneaky exclusions like non-payment for mental illnesses or other pre-existing health conditions
- Check the per-item sub-limits, like the amount you can claim on a laptop or camera
- Find the right insurance for your with CHOICE's travel insurance buying guide: https://www.choice.com.au/travel/money/travel-insurance/buying-guides/insurance
Tigerinsure international PDS 20141017.pdf
Speed Reading Test Online.pdf