A traveller who was forced to end his Bali holiday early when his wife became sick will not be paid for his losses after his insurer argued the expenses occurred outside its period of cover.  

The claimant had taken out a single-trip policy for a planned holiday to Europe and Bali between September 2 and October 2 last year. 

The man and his wife returned from Europe to Melbourne on September 22 and went to Bali on September 27 before the holiday was cut short.  

The claimant wanted Tokio Marine & Nichido Fire Insurance to cover his wife’s medical expenses and additional spending on flights to return to Australia early. 

The insurer declined the claim, saying the policy covered a single trip only and that its period of insurance ended when the couple returned from Europe. 

The claimant said he was unaware he had a single-trip policy and would have bought a multi-trip policy if he had known.  

He argued his insurer should have informed him – during a call on January 12 last year to amend the policy – that he would not be fully covered. He also said the insurer’s website was misleading, because its default option was for a single trip. 

In a dispute ruling, the Australian Financial Complaints Authority has challenged the man’s assessment of the conversation, saying the insurer had no reason to believe the man was returning to Australia between the trips. 

“The complainant did not indicate he would be returning home between his travel to Europe and Bali or enquire about cover if he did so,” the authority said. “The insurer’s consultant confirmed twice in this call that the complainant was departing on September 2 2023 and returning on October 2 2023. The complainant confirmed both times this was correct.”  

It says Tokio Marine & Nichido Fire Insurance clearly informed the insured the policy had single-trip and multi-trip options, and it was his responsibility “to ensure the cover he selected suited his needs”. It also notes the website clearly identified which cover option he selected and allowed him to change it. 

“If the complainant had any queries about whether the Bali trip could be covered under the single-trip option, he could have asked the insurer during the January conversation or checked the policy document before commencing his trip to Europe in September,” the authority’s adjudicator said. 

“I am satisfied he had sufficient time to make these enquiries.” 

The authority notes the single-trip policy states cover ends when the insured returns “home”, defined as the permanent residence in Australia, and the insurer was entitled to deny the claim. 

“The trip to Bali started and ended after the Europe trip was completed, making the travel to Bali a separate trip.”  

Click here for the ruling.