Active holiday plans? Check your travel insurance policy first

Over the past five years one million people have been injured while on an activity holiday and many have not been covered by their travel insurance policy.

A study from insurance provider AXA says 13 million people will go on an activity or adventure holiday this year with trekking, cycling, water sports and diving holidays being most popular.

AXA warns that the number of holiday-related injuries could rise dramatically as more people choose to go on vacations which include some kind of sport or other physical activity. The company's research shows that nearly one in three UK adults are planning to take some type of activity holiday during the next 12 months.

Worryingly, AXA's study revealed that a staggering two million (16%) of those planning to go on an adventure holiday in the next year do not intend on taking out travel insurance and are leaving themselves at risk. And it is the thrill-seeking men who are most likely to travel without insurance.

AXA's travel insurance manager Pat Brady says, "Many people are venturing away from the traditional package holiday by combining their vacation with new activities and sports. At AXA we are finding that many more people are choosing to build tailor-made holidays and plan adventure-orientated breaks but are not covering themselves against the added risks that come with them."

A good travel insurance policy should not only cover you for any dangerous sports and activities you might take part in, but also medical and repatriation costs. Experts generally recommend having £1 million medical expenses if you're travelling within the EU but at least £2 million if you are going to the US.

Without cover, holidaymakers could have to fork out £30-35,000 for an air ambulance from the east coast of America, or £1-2,000 for every day they spend in intensive care.

What's covered as standard and what's not...

But some sports are not covered as standard on travel insurance policies, leaving holidaymakers stranded if they get hurt while taking part. Others can be covered for an extra cost while some more extreme sports cannot be insured at all.

Over-50s insurer Saga automatically covers a wide range of activities such as scuba diving, jet-skiing, surfing, cycling and winter sports. Some activities come with conditions attached though; for example, sailing is only covered within coastal waters which are defined as within a 12-mile limit of the coastline. Others such as go-karting, surfing and snow mobiling are covered but not for personal liability so if you injure someone else while participating in one of these activities they could hold you personally liable.

Saga chief executive Andrew Goodsell says increasing numbers of over 50s are taking part in sports and activities. "If you might be tempted to try something new while you're away it's worth making sure you have adequate cover," he says.

Scuba-diving is becoming increasingly popular but it's worth checking your insurance policy before you don your mask and oxygen cylinder. Most insurers only cover you to a depth of 30 metres and some specify that you must be accompanied by a qualified diving instructor.

If trekking is more your style, some insurers have limits as to the maximum height you can trek to, while others such as Preferential don't have any height restriction and so are often used by companies running Himalayan and other treks.

While Preferential covers many activities as standard, others attract an extra premium. Abseiling, American football, open sea sailing, cricket, heli-skiing, white water rafting, mountain biking, parachuting and netball (!) all attract an extra cost ranging from £32 for netball to £74 for parachuting per year. Some sports including micro-lighting, BMX stunt-riding, boxing, rock climbing and bungy-jumping are excluded altogether.

Most travel insurance policy booklets contain a list of sports and activities covered and any extra costs. If you are planning to try something new on holiday its worth having a read of your policy before you set off. Some insurers, such as Mondial, provide a helpline you can call to check what activities are covered and any extra charges.

"Wherever possible we try to offer cover either under standard terms or for an additional premium but there are some extreme sports e.g. base jumping, caving or potholing that cannot be covered," explains Mondial's Gill Craig.

20 June 2006 © Moneyextra.com

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