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Bird Flu: What your insurance company hasn't told you!

Bird Flu: What your insurance company hasn't told you! ... continued from above

In this article we'll look at the various policies that you may need to rely on in the event of a bird flu pandemic ... and the likely issues that could impact on policyholders.

The insurance industry's worst-case models - in the event that the disease jumps from birds to humans - predict worldwide losses of $US71.3 billion ($97 billion) to $200 billion. More optimistic models show $US15-20 billion of insured losses, reflecting medical advances and containment efforts.

Health Minister, Mr Tony Abbott, has predicted 13,000 Australian deaths with more than 2 million others affected if there was a pandemic of a strain of the disease.

The answers to the bird flu insurance question, as with any other event, will be found in the wording of your insurance policies.

1. Life Insurance.

According to the World Health Organisation, half of those infected with the disease to date have died ... so it's important to understand the issue of bird flu as it relates to life insurance.

Life insurance policies usually cover death by any cause - other than specifically excluded events (such as suicide within a certain period from taking out cover).

No policies we are aware of exclude bird flu and, unlike general insurance policies (covering cars,
home & contents, etc), your life insurer can't add exclusions like bird flu after the policy is in
force. Check your policy wording or ask your broker if you are in any doubt.

You should also check your policy to see whether there is a premium rate guarantee. A premium grate
guarantee means that your insurer can't increase your rates in order to subsidise the potentially
massive losses that a bird flu pandemic could cause.

You should also get your hands on a copy of the application form that you completed when you
purchased your life insurance policy to ensure that there are no errors or omissions. Insurers can
void your policy for non-disclosure of information ... meaning that they could potentially avoid a
payout for death as a result of bird flu because, for example, you didn't disclose that you had
asthma as a child.

To help determine whether the amount of cover that you have on your life will meet your expectations you are welcome to use our free online life insurance calculator.

You can also apply free online for comparison life insurance quotes from a broad selection of leading
Australian insurers.

2. Income Protection Insurance

As in the case of life insurance, Income Insurance policies usually provide cover for all events that
are not specifically excluded in the policy document ... so unless you can see a bird flu exclusion
in your policy, then you are probably protected.

Also like life insurance policies, the better quality income protection insurance policies are also
usually guranteed renewable and non-cancellable by the insurer ... meaning they can't add new
exclusions to existing policies.

Premium rate guarantees are available on some policies and, again, you should check that you have
disclosed anything and everything in relation to pre-existing conditions on your application.

You can obtain competitive premium rate comparisons for income protection insurance using our free online quote request form.

3. Trauma Insurance

Unlike life insurance or income protection, trauma insurance covers only specific events ... i.e. if it's not on the list of insured medical conditions (and we're yet to find a policy that includes bird flu on the list), then you're not covered under your trauma policy unless the impact of the disease was such that the you could never work again on a ‘total and permanent’ basis.

It is worth noting that very few Critical Illness policies are sold without life insurance cover. We include optional quotes for trauma insurance in both our life insurance and income protection insurance quote request forms

4. Health Insurance

It will depend largely on the severity of the illness (therefore the extent of your required treatment) and the type of cover that you have as to how far your health insurance policy will go in providing for your needs should you contract bird flu.

According to UK health insurance specialist, Phil Taylor, as soon as the condition (or a related condition) becomes acute, it is likely that a patient would be admitted to an intensive care facility. You should check your policy terms and conditions to establish whether it extends to cover this eventuality.

You can obtain free health insurance policy comparisons from Australian health insurance specialists iSelect.

5. Travel Insurance

Given that, in the current environment, there is potentially a higher risk of contracting something
like bird flu whilst travelling overseas than exists domestically, you should investigate your policy
wording carefully for both inclusions and exclusions that may affect you.

If you are travelling without travel insurance, or if you wish to obtain travel insurance quotes or policy comparisons, we recommend that you visit 1Cover.

In addition to travel insurance, there are other precautions that you can take in order to minimise
the risk of contracting bird flu.

Kaz Ross, Asian Studies Coordinator, School of Asian Languages and Studies, University of Tasmania,
has prepared the following recommendations for travellers, particularly those travelling in Asia.

Before you travel

Stay informed about travel warnings. Regularly check the Department of Foreign Affairs and Trade
website at http://www.dfat.gov.au 

Visit CDC's Travellers' Health Web page on Southeast Asia (http://www.cdc.gov/travel/seasia.htm) to
educate yourself and others who may be travelling with you about any disease risks and CDC health
recommendations for international travel in areas you plan to visit. For a list of affected areas and
other information about avian influenza, see http://www.cdc.gov/flu/avian/index.htm

Register with the Australian embassy in the country you are visiting. You can do this online at
https://www.orao.dfat.gov.au/orao/weborao.nsf/homepage?Openpage

Be sure you are up to date with all your vaccinations, and see your doctor or health-care provider,
ideally 4–6 weeks before travel, to get any additional vaccination medications or information you may
need.

Discuss any concerns with your doctor before departure. Your doctor may recommend purchasing
anti-viral medication such as Tamiflu or Relenza. Although these are not designed to fight Bird Flu
specifically they are effective against viruses. There is no specific vaccine for Bird Flu yet. Your
doctor may also recommend a normal flu shot. Your doctor may also recommend purchasing face masks.
Make sure these are of Australian Standard P2. See 3M site at
http://www.3m.com/intl/au/safety/index.jhtml for details of products.

Assemble a travel health kit containing basic first aid and medical supplies. Be sure to include a
thermometer and alcohol-based hand gel for hand hygiene. See the Travellers Health Kit page at
http://www2.ncid.cdc.gov/travel/yb/utils/ybGet.asp?section=recs&obj=travelers-health-kit.htm for
other suggested items.

Identify in-country health-care resources in advance of your trip.

Check your health insurance plan or get additional insurance that covers medical evacuation in case
you become sick.

While overseas

Avoid all direct contact with poultry, including touching well-appearing, sick, or dead chickens and
ducks. Avoid places such as poultry farms and bird markets where live poultry are raised or kept, and
avoid handling surfaces contaminated with poultry faeces or secretions.

As with other infectious illnesses, one of the most important preventive practices is careful and
frequent hand washing. Cleaning your hands often with soap and water removes potentially infectious
material from your skin and helps prevent disease transmission. Waterless alcohol-based hand gels may
be used when soap is not available and hands are not visibly soiled.

Influenza viruses are destroyed by heat; therefore, as a precaution, all foods from poultry,
including eggs and poultry blood, should be thoroughly cooked.

If you become sick with symptoms such as a fever, difficulty breathing, or cough, or with any illness
seek prompt medical attention. It is advisable that you defer further travel until you are free of
symptoms, unless your travel is health-related.

After your return

Monitor your health for 10 days.

If you become ill with fever and develop a cough or difficulty breathing or if you develop any
illness during this 10-day period, consult a health-care provider. Before you visit a health-care
setting, tell the provider the following: 1) your symptoms, 2) where you travelled, and 3) if you
have had direct contact with poultry. This way, he or she can be aware that you have travelled to an
area reporting avian influenza.