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When traveling abroad, the assurance of prompt medical assistance is crucial for peace of mind. However, if your travel insurer fail to promptly approve urgent medical care, it can lead to significant complications and financial strain. In this circumstance, you may be entitled to compensation arising from the insurer’s delay and the effect of the same.

Implications of Delayed Medical Approval

Delayed approval for urgent medical care can have severe consequences. Policyholders may face prolonged suffering, deteriorating health conditions, and mounting medical expenses. In some cases, the insurer’s delay may even lead to death.

The financial burden of out-of-pocket payments for emergency treatment can quickly escalate, compounding the stress of an already challenging situation. In addition to physical and financial impacts, there may be emotional distress from the uncertainty and delay.

Legal and Regulatory Framework

Australian travellers are protected under various legal and regulatory frameworks designed to ensure fair treatment by insurers. The Insurance Contracts Act 1984 mandates that insurers act with utmost good faith. This includes promptly addressing and approving claims for urgent medical care. Failure to do so may constitute a breach of contract, entitling the policyholder to seek compensation.

The Australian Competition and Consumer Commission (ACCC) and the Australian Financial Complaints Authority (AFCA) provide oversight and dispute resolution services. Travellers can escalate complaints to these bodies if insurers do not fulfill their obligations. These organisations can mediate disputes and assist in securing appropriate compensation.

Claiming Compensation

To pursue compensation for delayed medical care approvals, travellers should follow these steps:

1. Document Everything: Keep detailed records of all communications with the insurer, medical reports, and receipts for any out-of-pocket expenses. This documentation is crucial for substantiating the claim.
2. File a Formal Complaint: Start by lodging a formal complaint with the insurer. Provide all relevant evidence and clearly outline the issue and its impacts.
3. Seek External Assistance: If the insurer’s response is unsatisfactory, escalate the complaint to the Financial Ombudsman Service. They offer a free, impartial resolution process and can help mediate between the traveller and the insurer.
4. Consider Legal Action: As a last resort, legal action may be necessary to obtain compensation. At Carroll & O’Dea, we have expertise in insurance law and compensation law, and can advise you and your loved ones as to your potential entitlements arising from the insurer’s delay in providing medical treatment.

Conclusion

Delays in approving urgent medical care by travel insurers can result in significant hardship for travellers. Understanding your rights and the available avenues for compensation is vital. By documenting all interactions, seeking assistance from regulatory bodies, and exploring legal options if necessary, we can help you navigate the complexities of insurance claims and seek fair compensation for the challenges you may face.

This article was published on 8 December 2025 by Carroll & O’Dea Lawyers and is based on the relevant state of the law (legislation, regulations and case law) at that date for the jurisdiction in which it is published. Please note this article does not constitute legal advice. If you ever need legal advice or want to discuss a legal problem, please contact us to see if we can help. You can reach us on 1800 059 278 or via the Contact us page on our website.