How cruise mishaps could cost travellers millions

Aussies are cruising like never before, with a record 1.32 million setting sail in 2024. As travel costs rise, more Australians are opting for cruise holidays as a smart, value-packed way to explore sun-soaked destinations and enjoy breathtaking ocean views without breaking the bank.

However, with more Australians turning to the seas, safeguarding your holiday investment and your health has never been more important. Even smooth sailings can hit rough waters, as evidenced by recent figures from 1Cover Cruise Travel Insurance. This year alone, the insurer has paid out more than $3 million in cruise-related claims, with an average claim cost of $5070. The figures are an important reminder to get covered, no matter where you sail.

According to the insurer’s data, the most common claims this year have been largely driven by medical emergencies, which account for an estimated 47% of payouts. These include sudden illnesses, injuries on board, and complications related to pre-existing conditions.

Trip disruptions and cancellations followed closely, often triggered by family emergencies, illness, or extreme weather, forcing a change of plans. 

Smaller categories, such as lost luggage, were also a pain point for passengers, along with missed ports and claims for additional accommodation.

“This year, we’ve seen a wide range of cruise-related claims, from medical emergencies to itinerary disruptions,” says Natalie Ball, COO for 1Cover Travel Insurance. “The data reflects that as cruising becomes an increasingly popular choice for holidaymakers, travel insurance should be non-negotiable for passengers of all ages.”

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Pneumonia cases cause claims to spike 

Ball notes that some of the year’s largest claims have involved significant respiratory illnesses. 

“This year, we’ve seen several significant cruise claims involving passengers contracting illnesses like pneumonia. Recently, we had a particularly high-value claim involving a traveller on a Japan cruise who required urgent medical evacuation after contracting both pneumonia and influenza,” Ball says.  

“While most illnesses on cruises are minor, such incidents show how critical the emergency assistance included with travel insurance can be. The total of that claim came to just over $400,000”

Another notable case involved a man who injured his ankle prior to his cruise. 

“In this case, a passenger was unable to make his US cruise due to a severe ankle injury suffered abroad. The total costs of his claim, including hospital treatment, cancellation costs and revised travel arrangements, rounded up to a total of $129,000.”

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Not all cruise claims are medical-related

“While we’ve seen the usual claims for lost luggage or cancelled excursions, many cruises were disrupted by itinerary changes due to sudden illness and family emergencies, pre-departure. These disruptions at times affect multiple passengers and highlight how travel insurance can protect against unexpected logistical challenges,” says Ball.

Outside of typical cruise routes, 1Cover is currently seeing very large claims from the United States, including several involving cruises departing from or visiting US ports.

 “At least one case in which passengers were required to cancel their cruise, prior to their departure, exceeded $10,000, highlighting the hefty price of cruise cancellations and amendments.”

All in all, Ball says that passengers were often taken aback at how quickly costs could escalate once on board.

“While cruise ships do have doctors on board, this doesn’t undermine the need for travel insurance. Without suitable cover, you would be liable for any medical fees and emergency transport expenses. And these can quickly soar into the tens of thousands of dollars, or more.”

Founded in 2003, 1Cover is one of Australia’s leading online travel insurers, trusted by millions of customers. Backed by HDI Global Specialty SE – Australia, all 1Cover policies include a 24-hour emergency medical assistance helpline, ensuring that wherever you are in the world, 1Cover is the One thing you need when One thing goes wrong. 

For more information on cruise cover, visit 1Cover.com.au.