SCTI introduces cost-effective medical coverage for travelers

Southern Cross Travel Insurance (SCTI) has introduced a new international medical-only policy, targeting travelers who want medical coverage without the added features of comprehensive insurance.

This initiative follows The ITCS Future of Travel Report 2024, which found that while 51% of New Zealanders prioritize travel, 10% forgo travel insurance to save money. The report highlights the financial risks associated with uninsured travel.

Importance of medical coverage while traveling

Over the past year, SCTI has handled significant medical claims, including more than NZ$1.2 million for an injured traveler in the United States. Between July 1, 2023 and April 30, 2024, the insurer processed more than $9 million in total medical claims.

Jo McCauley, CEO of SCTI (pictured), highlighted the need for medical coverage, pointing out that even minor travel mishaps can result in significant medical bills.

“While a small number of travelers believe they can get away without taking out comprehensive insurance, many New Zealand travelers underestimate the potential costs associated with common travel accidents. “Whether it's tripping and slipping outside a restaurant or puncturing your foot while playing a quick game of football, what seems like a small thing can end up costing thousands of dollars in medical bills.” she declared.

International medical plan only

The Future of Travel report found 85 per cent of New Zealand travelers are looking for ways to reduce their spending this year.

SCTI's new International Medical Only plan is designed for budget-conscious travelers looking for essential medical coverage.

“For about $12 a day, it's definitely worth investing in affordable health insurance rather than panicking thinking about how you're going to pay for hospitalization costs away from home,” McCauley said.

She said the international medical-only policy offers an alternative to the global SCTI policy.

“International Medical Only is an alternative to our flagship International Global policy; aimed at those on a tighter budget who still want medical protection but without the other usual elements of travel insurance policies, such as cancellation and lost baggage cover,” a- she declared.

McCauley said younger travelers under 30 are more likely to skip insurance to save money, while older travelers (65 and older) often rely on credit card travel insurance , which may not provide adequate protection.

“In our experience, for both young and old people, medical costs can exceed what most people can afford when unexpected health problems arise among uninsured travelers,” she said. declared.

Travel insurance claims resulting from simple incidents

McCauley pointed out that medical costs can quickly add up, citing examples of SCTI claims over the past two years:

• In the United States, a 10-year-old child spent $406,000 on medical expenses.
• A 39-year-old man fell at a skate park in the United States, resulting in charges of $107,190.
• A 69-year-old required an emergency air ambulance from Indonesia, costing a total of $256,959.
• A 13-year-old boy had to be hospitalized after nearly drowning in Indonesia, costing $36,000.
• A 31-year-old man suffered rib fractures in Indonesia, with expenses reaching $43,000.
• A 15-year-old boy injured in South Africa had to pay $36,000 in medical bills.
• A 56-year-old man broke his leg in Indonesia, costing $39,000.
• An 80-year-old man needed treatment after a slip in Italy, costing a total of $41,500.
• Another 80-year-old woman broke her ankle in Germany, costing $42,000.
• An 81-year-old man suffered a coronary accident in Thailand, costing $16,500.

“When you look at the cost of a policy versus the actual medical costs claimed by Southern Cross members, it puts everything into perspective,” McCauley said.