15 things not usually covered by IEC Travel Insurance

1. Breaking the law

Just because you’re on holidays, it doesn’t mean the rules don’t apply. Laws are there for a reason, and if you don’t follow them and behave in a way that gets you into trouble with the police or government, you won’t be covered if a claim arises from it.

Example

If you become injured while breaking the law, you will generally not have your hospital and medical expenses covered by travel insurance. This includes riding a motorcycle without the required helmet or licence, or not obeying the road rules.

2. You’re Intoxicated or have taken illicit drugs

It’s not illegal to have a drink while in Canada, but if you’ve drunk alcohol excessively, your travel insurance will be void. That means if you’re under the influence of alcohol and you stumble and hurt yourself, you won’t have cover for medical expenses. Take illicit drugs and have an accident as a result? Your IEC travel insurance won’t cover you.

3. Your pre-existing medical condition is not covered by your policy

If you have a pre-existing medical condition, you should check to see if the medical condition is covered under your IEC insurance. If it’s not covered and you experience a complication from your pre-existing medical condition, you won’t be able to claim for any out-of-pocket expenses you incur as a result. And we’re not just talking about medical expenses; your trip cancellation or disruption expenses are included here too.

4. If you knew that a family member was going to be hospitalised or die

If a family member is seriously sick or passes away, and you were aware of the likelihood of this happening at the time that you buy your policy, you may not be reimbursed for the costs you've incurred to cancel your trip, or for the costs that you incur to return home to be with them.

5. You participate in an activity that is not covered by your policy

Ensure you understand the IEC insurance that you have taken out for your working holiday, and that you have cover for the activities you plan to do in Canada. If it’s not covered under the policy that you’ve chosen, or if you forget to pay the additional premium to be covered for an activity, you won’t be able to claim for the expenses that arise from it.

Example

If you go skiing and skiing or snowboarding is not covered by your travel insurance policy, you’ll be responsible for paying your medical and hospital expenses if you’re injured in a ski accident.

6. Something you already knew about or has already happened

In insurance terms, we call this a “Known Event”. Your IEC Canada insurance provides cover for unexpected and unforeseen situations, and not for events that have already occurred or you’re aware that it may happen at the time that you bought your policy.

Examples

Some situations where you wouldn’t be covered because at the time that you bought your policy:

• You applied for your dream job in Australia, and if you get the job, you’ll cancel your IEC trip. Your cancellation costs would not be something you’d be able to claim for.
• A family member is seriously sick, and you know there is the likelihood that they may pass away during your trip. Returning home won’t void your IEC insurance, but you wouldn’t be able to claim for the travel costs.
• A blizzard has already hit the area of Canada you plan to travel to which likely means you won't be able to travel to that area, and you then book a tour to that area. You would not be able to claim for your travel plans that are subsequently disrupted when the tour is cancelled or delayed.

7. You get a Sexually Transmitted Infection (STI)

Travel insurance generally excludes cover for medical expenses related to Sexually Transmitted Infections (STI's) or diseases.

8. Regular medical check-ups

We know you may be away from home for up to 2 years, however, regular medical or dental check-ups or filling regular prescriptions are not considered medical emergencies or something “unexpected”. Travel insurance provides cover for unanticipated events for which you were not aware of at the time you purchased your policy.

If you will require regular medication, bring enough of what you’ll need for your working holiday before you leave, consider having any check-ups or routine medical appointments before you go and budget for any costs. If you qualify and register for Canada's universal health-care system, some costs for check-ups or medication may be covered.

Example

Check-ups and buying medication you normally take at home such as ventolin, and prescriptions for contraception are not considered unexpected situations.

9. You ignore official warnings

If the Australian Government or other official body release a warning on smartraveller that certain areas are no longer safe to travel to, and you choose to travel there anyway, your travel insurance may be void.

So don’t put yourself in danger: if you’re planning on doing some travelling outside Canada, check smartraveller to see if it’s safe to do so.

Travel advisories can also affect the cover on your policy and should also be checked before you buy your policy, and before and during your trip.

10. You make a mistake in your travel planning

If you make an error in your travel plans or simply change your mind about travelling, it’s not something you’d be able to claim for.

Examples    

• Applying for the wrong type of visa
• Not satisfying all the IEC visa requirements which results in you being denied entry into Canada
• Your passport has expired or will expire during your trip and you’re denied exit from Australia or entry into Canada
• You’ve booked the wrong flight, or you missed your flight because you slept in

11. You do not look after your belongings

If something of yours is stolen or you lose it because you’ve left it lying around unattended, your insurer is unlikely to reimburse you.

Example

If you leave your bag with your wallet and passport inside it on the beach while you go for a swim, this will be considered leaving your belongings ‘unattended’ or ‘unsupervised’. So, make sure you always keep your belongings with you at all times or keep them in a secure location like your locked hotel room or safe.

12.  Someone else makes a mistake with your travel bookings

If your travel agent, family member or friend makes your travel bookings for you, you should double check what they’ve booked for you.

Someone else booking the wrong destination or getting the dates wrong is not something that your IEC travel insurance would be able to cover.

In the case of your travel agent making a mistake with your booking, you should seek compensation from them. If it’s a family member or friend, you may have to have an awkward conversation with them.

13. Your expenses are far more than what your policy provides cover for

Different policies provide different levels of cover, and there may be caps on how much you can actually claim for each benefit. You won’t be able to submit a claim for more than what you’re covered for.

Some policies may provide unlimited cancellation cover, it may be capped at $25 000, or there may not be cancellation cover at all. Having cancellation cover capped at a certain amount (or having no cancellation cover) may prove expensive if you’re not able to travel due to an unexpected illness and the amount that you’ve paid for your trip is higher than your policy limit.

You should also check if there are any caps for your luggage and personal belongings, especially if you’re bringing valuable items like cameras, laptops, iPhones or jewellery. Some policies provide an option for you to pay an additional premium to increase the cover for items like cameras and phones, however this option may not be available for other items like jewellery.

Example

If your engagement ring is worth $10 000, but the cover for any jewellery item is capped at $750, the most you could claim for the ring would be $750 if it was lost or stolen.

14. General Exclusions

General Exclusions are situations in which your IEC travel insurance will not be able to cover, regardless of what type of policy you’ve bought, and when you purchased it. These will be listed in your IEC travel insurance Product Disclosure Statement (PDS).

Many travellers were caught by surprise when COVID-19 affected travel, as they weren’t aware that pandemics and epidemics were a General Exclusion in their policy. When you make your claim, the Claims team will reference the PDS that was current and applied to your policy at the time you purchased it. Travel insurance companies don’t, and are not legally allowed to make a change to your PDS and bind you to the new updated one. So, whatever applied when you bought your policy is what your claim will be assessed against.

When looking for the best travel insurance for your IEC working holiday, you should read the relevant PDS to understand what you can have cover for.

15. Disappointing holidays

Perhaps the weather wasn't what you expected, your job in Canada wasn’t what you thought it would be, or your accommodation didn’t live up to the pictures online. Whatever the reason you’re unhappy with how your working holiday has shaped up, your travel insurance generally won’t compensate you because you didn’t enjoy your time there.