Cover-More, you drink and its cover-less..

By Eco Guy 8:47am 23rd February 2010
If you have Cover-More insurance, don't travel and do any drinking if you want to remain insured - thats the finding of a recent Today Tonight special.

The cover-more expensive small print

(yes I know this is meant to be an eco focussed blog - but to be honest this case of lack of moral standards needs to be shared)

According to the Today Tonight coverage tonight, and the local Daily News - it appears that Cover-More in Australia have a rather handy 'get out of being insured' clause in their travel insurance contracts - namely if you have been drinking and are involved in an accident, which is not your cause, you are not insured. Yes, even if it is not your fault, you are not insured - let me repeat again you are not insured even if its not your fault.

This has been brought to light by the case of an unfortunate father of two who happened to fall off the back of a ute when someone drove it off without giving him the chance to get off safely... End result, he has serious brain damage and a half a million dollar bill to pay which is going to bankrupt his family; all because he happened to have a drink prior to the accident!

It also appears that others have been having ongoing problems with this company.

What I recommend

  1. Firstly, do not do any business what so ever with Cover-More; this is an unacceptable business practice and not in anyones best interest of 'fair play';
  2. Secondly, if you do require travel insurance ask up front what the 'no fault' exceptions are and vote with your feet;
  3. Thirdly, contact your local MP or representative in Australia and make your opinion know that this is not acceptable;
  4. Fourthly, if anybody from Cover-More is reading this - pull your finger out and do the right thing by this man and pay his costs in full. The public will forgive you over time, but they will never forget you not paying up. Many a business has thought they could get away with this sort of 'snarf' in the public eye - the record of resultant business failures is probably near 100%. There truly is such a thing as horrifically bad PR.

Related Content Tags: insurance, australia, travel

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Comments left

  • Andrew said:

    Hi Keith, You clearly have absolutely no idea what you are talking about and come across as a completely ignorant idiot. There are two majors problems with you. Firstly you think that Today Tonight is a reputable journalism forum that gives you unbiased reporting. Was this guy really just sitting on the back of a ute before an unknown person got in and drove away? Secondly you know nothing about insurance. Allow me to retort to your 4 recommendations. 1) Your ignorance is showcased by you not realising that all policies have a clause about being drunk. Each case is dealt with individually, further showing that TT only reported certain aspects of the story. 2) Travel insurance companies clearly define what the exceptions are to their cover. 3) Your local MPs have nothing to do with insurance policies so why would I waste their time? 4) If you knew anything about PR you would know that there is no such thing as bad PR.

    Go back to the couch, im presuming youre in a singlet and tracksuit pants, and continue to pretend you know anything about anything. Also, get a copy of the dictionary and learn how to spell properly.

    Kind regards,


    ON Thu, 25 Feb 10, 12:02am probably from Australia  Reply to this comment

    • Eco Guy said:

      Hi Andrew,

      See the link http://www.productreview.com.au/showitem.php?item_id=20236 - Cover-More has been playing hard ball; which to be fair they are entitled to do; but in this case I think they have overstepped the line.

      Also there is such a thing as bad PR, my other half is a marketing researcher and PR specialist - anybody remember the Ratners 'a M&S prawn sandwich would last longer than our jewelery' speech at their AGM; and that is quoted from memory!

      The problem with this particular case is that the individual concerned was a third party to another person's actions, and they still used the 'had drunk' clause to get out paying - that's the real problem here. Yes, fair cop if you had one to many and fell down and hurt yourself; not a fair cop if someone injures you and you had no part in causing that injury.

      As regarding local PM's - the government sets the regulatory and licensing environment in which insurance companies operate. So pressure applied there could prevent this in future.

      Let me repeat, I'm not against business making money; but there are times when a line is crossed and action needs to be taken to re-enforce that line for the good of all. This is looking like one of those times.

      ON Thu, 25 Feb 10, 12:02am probably from Australia  Reply to this comment

  • Covermore Travel Insurance said:

    Does single trip insurance cover local travel? If I buy single trip insurance for a trip from the London, UK to Melbourne, Australia, does the policy cover me for additional local flights within Australia during the course of the holiday? Like a flight to Sydney and back to Melbourne? Or is the missed/delayed departure policy usually for the flight entering Australia and the flight leaving Australia only.

    ON Thu, 21 Oct 10, 11:42pm probably from Philippines  Reply to this comment

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