NEW CODE WILL COVER TRAVEL INSURANCE POLICIES

The new General Insurance Code of Practice, which comes into force in July this year, will provide a new deal for consumers of travel insurance, the Insurance Council of Australia (ICA) said today.

As many people start to decide where they are going to go for their upcoming holiday, domestic and overseas travel and travel insurance are high on the agenda.

ICA Deputy Chief Executive, Philip Maguire, said the new General Insurance Code of Practice will meet higher, measurable performance standards for dealing with customers, including travel policyholders, should they make a claim, including settling claims in specific time periods and providing clearer information about policies.

"The new Code has received strong support from Government, as well as consumer and business groups," Mr Maguire said.

"The Code means insurers will meet agreed timeframes for handling claims or responding to complaints, generally within 10 days.

"Insurers can also fast-track claims or make advance payments when customers show they are in financial hardship as a result of the damage or loss leading to their claim.

"The Code enshrines a commitment to a better deal for customers across all types of general insurance? not currently covered by specific statute.

 "With more than 41 million insurance policies in force and $55 million in claims paid each business day in Australia, the improved service standards the Code promotes will have a genuine impact on travellers.

"The Code is written in plain language to ensure ease of understanding and not only sets concrete standards that customers will be able to expect of their insurer, but encourages insurers to exceed them.

"As an industry, we are conscious that consumers have high expectations about service delivery. Consumers want to know their claim will be dealt with fairly, honestly and efficiently. These expectations have been addressed in the Code," he said.

The Code is the result of more than a year of extensive consultations with the Consumers' Federation of Australia, the Australian Chamber of Commerce and Industry, the Federal Government's Office of Small Business, the Insurance Ombudsman Service and other groups.

"All ICA members, who represent approximately 90 per cent of the market, will adopt the Code, and all other general insurance industry representatives also encouraged to do so. Insurers will be implementing the Code in the most appropriate way for their businesses by July 18 this year," Mr Maguire said.

While the Code is being implemented, the ICA is encouraging overseas travellers this holiday period to take some time to ensure the travel policy they purchase best suits their needs.

 They should consider the following:

* When choosing a cover for overseas travel, make sure the policy will be recognised around the world. If some countries don't recognise the insurance underwriter they may not admit you to hospital;

* Make sure you are aware of who your emergency assistance provider is and how you can contact them;

* Be aware of exclusions. Most travel insurance policies won't cover luggage that is left unattended in public places or airline insolvency. Travel policies generally don't cover  war and may not cover the impact of acts of terrorism;

* You must declare any pre-existing medical conditions before you travel;

* Duty free or other goods bought overseas are covered, subject to policy limits, but you must have receipts as proof of purchase;

* If you become ill or are injured, contact your travel assistance provider and collect all the medical and other related documentation required for your claim. Make sure you get a signed statement from the Registrar of the hospital where you were treated.

* For the USA, Japan and Europe, make sure you have unlimited cover for hospital and medical costs - $500,000 is not uncommon for medical expenses in the United States. Please note that beds may not be available in a public hospital and you may end up being treated and charged as a private patient.

* Most policies include full medical evacuation. However, don't book early travel home before checking with your policy provider.

* Travel insurers rely on warnings and bulletins issued by the Department of Foreign Affairs and Trade. If you decide to cancel your trip in the absence of an official warning against travel, your insurance may not cover the cancellation.

* Travel, like other insurance, is highly competitive, so if you are not happy with the terms and conditions offered by a policy, shop around.

Compliance with the Code will be monitored by the independent Insurance Ombudsman Service, who consumers will be encouraged to contact if they feel their insurer has breached the Code.

For full details on the new Code of Practice, go to www.codeofpractice.com.au.