Travel Insurance companies are reiterating the need for travel insurance after a US man launched an $80,000 case against his consultant.
Matthew Goldstein filed a suit against Manhattan-based Bond Street Travel Inc. CEO Richard Nigosian after losing thousands when he cancelled his African safari honeymoon for fear of Ebola, New York Post reported.
In the lawsuit, Goldstein faulted the agent for not advising the couple to take out insurance that would cover cancellations.
Goldstein paid $41,300 upfront in July last year, but Goldstein didn’t advise him to take out a $4,000 travel policy that could have protected him until Ebola has started to spread in West Africa – and it was too late.
Nigosian said he ‘knowingly and intentionally’ didn’t inform the client of the right cover earlier because “the trip was a honeymoon and it would be bad karma”.
Goldstein is now seeking up to $30,000, plus $50,000 in punitive damages.
While Goldstein and Nigosian may be one US case, new figures by Fast Cover Travel Insurance show here in Australia more than 40 percent of travellers are gambling with their finances by not taking out a travel insurance policy or forgetting to buy one.
There’s also over one third of Aussies who are waiting until last minute to buy insurance – which is leaving them exposes them to potential financial losses should they choose to cancel.
To ensure travellers aren’t losing out financial companies are stressing the importance of insurance. Image: Syda Productions/Shutterstock
Fast Cover Travel Insurance’s MD said the figures were alarming and echoed Foreign Minister Julie Bishop by stressing that ‘if you can’t afford travel insurance, perhaps you should rethink your travel’.
Late last year, Phil Sylvester from Travel Insurance Direct told KarryOn that one of the biggest mistakes travellers can make is not taking out the right cover.
“Taking out travel insurance is wise, there’s a number of people that aren’t and that’s one of the biggest mistakes they could make.”
Phil Sylvester, Travel Insurance Direct Safety Expert
And Comparetravelinsurance.com.au’s Natalie Ball told KarryOn that travel insurance is as important as a passport and should be purchased alongside flights and accommodation.
“Whether it be through a travel agent, or independently, travel insurance should be next on the list.”
Natalie Ball, comparetravelinsurance.com.au Director
“Many Australians assess their requirement for travel insurance by the perceived danger of the country they are visiting. But the truth is that the unexpected can happen to anyone, anywhere, anytime.”