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So, you've done your research and found the policy you need. You're about to click 'buy'. Then you see that checkbox you need to tick that says, 'I acknowledge I've read the product disclosure statement'.
But wait… before you tick it, have you actually read the product disclosure statement (or PDS)? In the insurance world, that 'fine print' is the product, and it pays to know what product you're buying.
How to read the PDS
There are hundreds of policies out there. If you tried to read all the paperwork and the PDS that comes with each policy, you'd have to extend your holiday just to recover.
If you don't have time to read the whole PDS, at least look for the following:
- Table of benefits gives you an overall summary of your cover.
- Policy cover section is essential reading. It's generally split into 'what we will pay for' and 'what we won't pay for'.
- General exclusions section is essential reading. These are events that aren't covered by any section of your policy.
- Pre-existing conditions can remind you of forgotten ailments. It's essential reading for anyone with any kind of medical condition, no matter how mild.
- Word definition table might contain a few surprises. It's a good place to check on the definition of a 'relative' or a 'scooter', for example.
- Claims section lists some more pointers to be aware of. For example, most insurance policies state that you must not admit any liability in an accident without their consent. Also remember to keep any paperwork, such as police reports, that you might need to make a claim.
- 24-hour emergency assistance contact number – write it down and keep it handy.
The list of travel insurance disputes taken to the Australian Financial Complaints Authority (AFCA) shows many cases of unread or misinterpreted policy terms and conditions. Between 1 July 2024 and 30 June 2025, AFCA received 2,036 travel insurance complaints.
Not all travel insurance policies are the same. The wrong policy can be almost as bad as none.
Tip! Contact AFCA if you feel your declined claim wasn't right.
Case study
Katherine's luggage was stolen from the designated cargo section onboard a bus in Barcelona. The insurer declined her claim for €2500 in losses (over $4000).
According to the insurer, Katherine should have had the bag on her lap or stood beside the bag in the cargo section of the bus, instead of leaving it 'unattended'.
AFCA ruled in Katherine's favour, saying it 'was not reasonably possible for the complainant to avoid leaving her bag unattended in the circumstances'. The insurer was to accept and pay the claim for Katherine's lost luggage in accordance with the policy terms.