Swine flu 'may stymie travel insurance'

Travellers bound for overseas could be left with hefty medical bills as their insurance policies may not cover them for swine flu, a financial research firm says.

Canstar Cannex head of risk insurance Stephen Mitchell said insurance companies used travel warnings from the Department of Trade and Foreign Affairs (DFAT) to help decide if a policy holder's application for aid was successful.

"This could mean you are not covered for hospitalisation related to swine or avian flu if there is mass media coverage about world problem spots or travel warnings current from our government," Mr Mitchell said.

In the past year, more than 20,000 Australians found themselves in difficulties overseas. Some 700 people were admitted to hospital, there were 600 deaths and 100 evacuations of Australians to another location for medical reasons, according to DFAT's smarttraveller.gov.au website.

Mr Mitchell said travellers should check the coverage of other insurance contracts they may posses, such as life insurance and income protection.

"Check your life insurance contract to ensure it is not restricted and offers 24 hours a day, 7 days a week worldwide cover that it is not influenced by DFAT warnings," he said.

"Some policies cover accidents only and not accident and sickness, which will leave you exposed should you be unfortunate enough to contract swine flu or any other illness when you are overseas."

The World Health Organisation (WHO) upgraded its pandemic alert level to five out of six for swine flu on April 29.

Mexico was the origination of swine flu but the virus has been reported in the US, Canada, New Zealand and 10 other countries.

A traveller's level of insurance protection could be greatly affected by their activities and where they travel to, Mr Mitchell said.

"Knowingly travelling to a country which the government is warning against, whether it be for terrorism, piracy on the high seas or a contagious disease, increases your exposure to potential danger," he said.

"This may well exclude insurance cover so before you leave home, the best thing you can do is read the fine print on all your personal insurance policies."