How travel insurance claims work

Travel insurance, like every other form of insurance, is a safety net we hope we won’t have to use. All we want is to enjoy our holiday with the knowledge that in the unlikely event something goes wrong, we are covered.

But what happens if you have to make a travel insurance claim? Will you automatically get reimbursed? What will the insurer ask you to provide to ensure you get your money back? And what happens if you don’t?

Whatever travel insurance policy you choose, most have a benefit limit, the maximum amount an insurer will pay for each type of claim. For example, the benefit for medical expenses might be capped at a certain amount and if your costs exceed that, you will need to cover the difference.

Many policies also have an overall limit, the maximum the insurer will pay across all claims combined (such as medical expenses and resulting flight and accommodation changes) no matter how many things go wrong.

 

 

What do I need to make a claim?

Keep your policy details handy (ideally in an email you can access anywhere in the world). When you lodge a travel insurance claim, you will need to provide the policy number or certificate of insurance, and evidence to support your claim, including receipts, invoices or quotes.

• • For lost or stolen items, you will usually need a police report, ideally obtained within 24 hours of the incident. Receipts or photos of the item (such as camera or laptop) taken before the trip would also show proof of ownership.
  • For medical claims, you will need a doctor’s certificate or hospital discharge summary, and receipts of payments, including any pharmacy medication. You may also need proof of pre-existing conditions if you are claiming related treatment.
  • For claims related to travel delays, you will need evidence of those delays, such as your flight itinerary and the airline’s notification (via text or email) of that disruption.

How long does a claim take to resolve?

It depends on the insurer or the type of claim. Straightforward claims such as lost luggage can often be paid out within 10 days if you report the issue promptly. Medical claims will usually take longer as the insurer needs to assess your eligibility and review the documentation in detail. They may even ask for further information from your GP.

If you are dealing with an emergency overseas, most reputable insurers will have a 24/7 assistance hotline. Make sure you know that number before you depart and save it somewhere you can access even if your phone is lost or stolen – perhaps share with a family or friend at home. The insurer hotline can provide hospitals with financial guarantees, liaise with your treating doctors, arrange medical transfers or evacuations, and contact family if needed.

 

 

Be sure to file your claim as soon as possible – most insurers will have an online portal where you can upload documentation. If you need help immediately, contact the insurer’s hotline. If you are claiming after your trip is over, make sure it is within the insurer’s window, usually within 30 days of returning home.

Can my claim be rejected?

There can be a range of reasons why you might not get the response you want, including:

• • You didn’t disclose relevant information when you bought the policy
  • The claim falls under the exclusions category of your policy (such as a pre-existing condition the insurer will not cover)
  • You don’t have the necessary documentation to support your claim
  • You made your claim outside the policy period
  • Your expenses exceed the benefit or overall limit on your policy
  • You travelled to a country against government advice

Perhaps you were too focused on getting a good travel insurance deal and didn’t read the fine print properly.

If you get knocked back, however, it is important to remember that insurers don’t always do the right thing. Sometimes the decision is a simple error on their part; others are far more serious.

 

 

In February 2025, Allianz Australia and its travel insurance distributor AWP were fined a combined $16.8 million for making false or misleading statements. The Supreme Court of NSW found that Allianz and AWP had published information online that misrepresented its travel insurance characteristics or level of coverage.

The Australian Securities and Competition Commission Deputy Chair Sarah Court said the ruling “highlighted the critical need for the insurance industry to be transparent and accurate when selling and promoting their products”.

What can I do if my claim is rejected?

The first step is to check the reason why your claim was rejected. If the insurer has not provided this in detail, ask for a written explanation. If you do not agree with that explanation, ask them to review the decision through their internal dispute resolution process. Insurers are required to have one, and to respond within set time frames.

If you are still not satisfied, you can take your complaint to the Australian Financial Complaints Authority (AFCA), a free and independent resolution service. AFCA received more than 111,000 complaints in 2025, a 14 percent increase on the 2024 calendar year, with delays in claim handling the single most-complained-about issue across financial services. Complaints about denied claims were also rising year on year.

In other words, if you feel your insurer is dragging their feet or has unfairly knocked back your claim, you are far from alone.

AFCA can make directives on your behalf. If you are not happy with the authority’s ruling, you could consider legal action against the insurer.