The subject of travel insurance isn’t the thing that springs instantly to mind when we consider the carnage in Bali. So many Australian lives lost in a terrorist attack has brought home as never before the fact that Australia can no longer pretend terrorism is something that affects other people in other countries.

But Australians are, per capita, the most mobile travellers on the planet, and that’s not likely to change. The awful reality of the Bali bombing will inevitably draw the media’s attention to the usefulness – or not – of the travel insurance purchased by many travellers.

It will take a few days to clarify all the travel insurance issues related to the Bali terrorist attack, and ICA’s Insurance Disaster Response Organisation has been commendably swift in providing some initial guidance to Bali evacuees and those who have cancelled holidays there.

But NIBA Technical Services Manager Warren Turner says many of the predominantly young injured holiday-makers – some of whom have suffered shocking injuries – are unlikely to have travel insurance. After all, Bali was considered a safe destination for careful international travellers, with the main hazards riding motorcycles without helmets and the dreaded “Bali belly”. But that was then.

While IDRO National Co-ordinator Christopher Henri would not speculate on the number of victims covered, he said the scope of cover will vary substantially “depending on whether it’s your basic or Rolls-Royce type of cover”.

“It is not possible to be specific about cover because travel insurance varies widely,” he said. Since the September 11 terrorist attacks reinsurers and insurers have been reviewing terrorism cover in a wide range of policies including travel cover but this has not been applied uniformly.

“In the event that this is confirmed as a terrorist attack, IDRO understands that many travel policies will cover death, disability, repatriation and medical expenses,” he said.  “However, there may be some terrorism exclusions in relation to loss of belongings or cancellation or curtailment of a holiday.”      

But Mr Turner says under any type of insurance policy, including travel insurance, there is a standard terrorism exclusion. The fact that some insurers have indicated they may provide cover for certain losses caused by the attack may have more to do with the possibility of a media backlash if they don’t.

 “An exclusion is an exclusion,” Mr Turner said. “Terrorism is a normal exclusion so you have to alert people to that. If people want a particular benefit paid, the insurer will have to refer that to the individual underwriter to determine whether they will pay or not.”

IDRO is advising travellers affected by the Bali bombings to check with their insurer or travel agent about the scope of their travel insurance.

Mr Henri said people deciding not to travel should also check with their airline regarding cancellation. “All insurers will be endeavouring to provide as much advice and assistance as possible through their 24-hour telephone services centres.”

People who are unable to identify their insurer can contact Insurance Enquiries & Complaints on toll free number 1300 78 08 08.