Southern Cross Travel Insurance (SCTI) has rolled out a new International Medical Only policy, aiming to cater to travelers seeking medical coverage without the additional features of comprehensive insurance.
The launch of this policy aligns with SCTI’s Future of Travel 2024 report, which unveiled that 51% of New Zealanders prioritize travel, yet 10% forego travel insurance to cut costs. The report underscored the financial risks associated with traveling uninsured.
Over the past year, SCTI has handled substantial medical claims, including over NZ$1.2 million for a traveler injured in the USA. From July 1, 2023, to April 30, 2024, the insurer processed over $9 million in total medical claims.
CEO Jo McCauley emphasized the importance of medical coverage, noting that even minor travel incidents can lead to substantial medical bills.
“While a minority of travelers believe they can skip comprehensive insurance, many New Zealand travelers underestimate the potential costs of common travel mishaps. From slips outside a restaurant to injuries during recreational activities, seemingly minor incidents can result in thousands of dollars in medical expenses,” McCauley stated.
SCTI’s new International Medical Only plan, introduced in response to the Future of Travel report findings indicating that 85% of New Zealand travelers seek cost-saving measures, is tailored for budget-conscious travelers in need of essential medical coverage.
“For approximately $12 a day, investing in affordable insurance for health cover is prudent, sparing travelers from the stress of covering hefty hospital bills far from home,” McCauley recommended.
The International Medical Only policy serves as an alternative to SCTI’s flagship International Comprehensive policy, targeting individuals on tighter budgets who prioritize medical protection over other features like cancellation and lost luggage coverage.
McCauley highlighted that younger travelers under 30 often skip insurance to save money, while older travelers (65+) often rely on credit card travel insurance, which may fall short in providing adequate protection.
“Regardless of age, medical costs can quickly spiral out of control when unexpected health issues arise for uninsured travelers,” McCauley cautioned.
McCauley illustrated the potential financial ramifications with examples from SCTI claims over the past two years:
A 10-year-old incurred $406,000 in medical expenses while skiing in the USA.
A 39-year-old faced costs of $107,190 after falling at a skate park in the USA.
A 69-year-old required an emergency air ambulance from Indonesia, costing $256,959.
A 13-year-old incurred $36,000 in medical bills after nearly drowning in Indonesia.
A 31-year-old’s fractured ribs in Indonesia led to expenses of $43,000.
A 15-year-old’s injury in South Africa resulted in $36,000 in medical expenses.
A 56-year-old’s leg fracture in Indonesia cost $39,000.
An 80-year-old’s care after slipping in Italy amounted to $41,500.
Another 80-year-old’s broken ankle in Germany incurred $42,000 in expenses.
An 81-year-old’s coronary event in Thailand resulted in $16,500 in costs.
“When comparing the cost of a policy to actual medical claims, it underscores the value of comprehensive coverage,” McCauley concluded.
