$600k stroke: costliest travel insurance claims and your legal rights

Did you know you could be out-of-pocket hundreds of thousands of dollars if you have an accident overseas and you don't have travel insurance? It might not be worth the risk, new data has revealed.

The most expensive travel insurance claim paid by Southern Cross Travel Insurance (SCTI) in 2024 was $672,630 for a 76-year-old woman who suffered a stroke while on holiday in Albania.

Her claim included $500,000 just to cover the air ambulance to bring her back to Australia, SCTI said.

Global medical inflation over the past year has increased the cost of travel insurance claims exponentially, with the woman's claim coming in over 250 per cent more costly than the most expensive claim the previous year.

Another expensive claim was $362,034 for an 80-year-old woman who became ill in Thailand and suffered a collapsed lung, ruptured oesophagus and urinary tract infection while on holiday. She spent nearly two months in hospital and was sent via air ambulance back to Australia.

Another was $282,754 for a 78-year-old male who slipped while getting out of the pool while on holiday in Thailand. He required brain surgery and time in intensive care before being air ambulanced back home.

Other costly claims included a 44-year-old male who slipped on the ledge of a pool in Indonesia, and an 18-year-old female, also holidaying in Indonesia, who suffered a seizure following a severe gastro illness.

Carter Capner Law director and travel compensation lawyer Peter Carter said the most common issues he sees with overseas travellers are injuries in tour vehicles, hire cars and at resorts.

Most of the cases he represents involve road accidents and injuries on booked excursions and activities overseas.

He appealed to Aussies to get travel insurance after seeing too many bad scenarios when people weren't covered.

"If there's no travel insurance, the overseas hospital will ask for money upfront," Mr Carter told ACM.

The worst case he's seen was a young woman who was injured in a road accident in Vietnam and she was transported by air ambulance for treatment to Thailand. Her bill came in over $US80,000 ($129,700).

"So, the medical costs can mount up very quickly. She managed to mount a GoFundMe campaign and raise the funds for the treatment and her medical evacuation."

Mr Carter said the woman was "very fortunate" she was able to raise the funds and the hospital was willing to wait for her to do so, because "there's by no means a certainty".

"Travelers should always take out travel insurance. I think it's very unwise not to do so. It is an expense but accidents do happen," he said.

Another thing to keep in mind is that, if you have a major injury that may result in ongoing medical care, neither travel insurance nor Medicare covers loss of income.

"You are on your own unless you can get recourse against the at-fault driver (for road accidents) or the person or organisation at fault (other injuries). The prospect of getting recourse depends on many things including the legal system of the country in which the accident occurred," Mr Carter said.

Mr Carter recommended thinking carefully about safety, protection and risks before you leave on your overseas trip, and to select travel insurance carefully.

Don't forget to check exclusions because many policies will not cover what they deem to be dangerous activities, and have alcohol consumption limitations.

A big one is to book as much of your trip through Australian businesses as possible - including excursions and tours - because there is a higher likelihood of legal recourse if something goes wrong.

"If injured and the travel insurer refuses to pay, challenge this legally, as they may be obligated to pay under the law," he said.

"If you have an accident while overseas, you will need evidence of what happened, so leave a trail. This includes reporting details to local police and emergency services, and ensuring as much as possible is recorded or filmed. You will need proof.

"If injured, explore your legal options when you arrive back. Travel insurance stops on your return but there are other legal avenues that might help you."