1. About this document
This Target Market Determination (TMD) applies to the product(s) set out
in Section 6 and identifies who this
travel insurance is designed for. Customers can use this TMD to decide
if the insurance product meets their objectives, financial situation and
needs. It also outlines the conditions of distribution of this
insurance.
The benefits and cover offered by this insurance depend on the plan and
options selected. Information contained in this TMD does not constitute
personal advice. Customers must assess the cover offered to determine if
it is suitable for their circumstances.
2. Target Market for this insurance
Australian Travel Plan - This plan provides single trip cover for more events and has higher benefit limits compared to the Cancellation and Additional Expenses plan.
This is suitable for customers who: |
This is not suitable for customers who: |
Meet the following eligibility
criteria:
-
are residents of Australia of
any age; and
-
are only travelling within
Australia, either one way or
return; and
-
are taking a trip of up to 12
months in duration within 12
months of purchase of this
travel insurance.
Have the following objectives
that are met by the key
attributes of this product:
-
Seek protection from
financial loss as the result
of specific defined
unforeseen events, that may
be incurred prior to or
whilst travelling. For
example, this plan can
protect a consumer against
financial loss for:
-
defined trip cancellation
events, before and while
they travel;
-
accidental loss, theft,
or damage to luggage and
personal effects;
-
rental vehicle insurance
excess as a result of
accidental damage or
theft to a rental
vehicle; and
-
some Coronavirus related
events.
-
may want cover for, and agree
to undertake a medical
screening for any existing
medical condition(s) that
does not meet the criteria
for automatic cover.
-
want access to assistance
during their trip for
guidance, support (even when
losses may not be covered by
the policy) and general
policy and coverage
information, as they would
not likely have specialist
resources available to them.
-
do not wish to pay an
additional premium for this
cover to apply to travel by
river cruise within
Australian waters.
-
may want to tailor cover to
be more suited to their
insurance needs for their
planned travels by:
-
lowering the excess
applied if a claim is
paid to minimise out of
pocket expenses for
covered events;
-
increasing the rental
vehicle excess cover
limit to cover rental
vehicle insurance
excesses of a higher
value
-
increasing the
cancellation limit so
greater benefits are
available for trips of
higher value;
-
specifying valuable items
to increase cover limits
and not have depreciation
apply;
-
adding cover for loss
arising from
participation in snow
sports; and
-
adding cover for their
existing medical
condition(s).
Whose financial situation is
consistent with the following:
-
Persons who can pay the full
quoted premium for the plan
and options selected before
the policy is issued;
-
Persons who can incur the
applicable excess if a claim
is made; and
-
Persons who may not wish to,
or be able to, cover expenses
themselves for events covered
by this travel insurance.
|
-
want to be covered for travel
overseas; or
-
are not starting or ending
their trip at their home in
Australia; or
-
are Australian expatriates
based overseas; or
-
want cover for cruises in
Australian coastal or
territorial waters; or
-
want cover for multiple trips
under a single policy; or
-
want cover for loss arising
from excluded activities; or
-
want cover for travel to a
destination subject to a “Do
Not Travel” warning issued by
the Australian Government’s
Department of Foreign Affairs
and Trade; or
-
require cover that would
cause us to be in breach of
any restriction under United
Nations resolutions or any
sanctions, laws or
regulations of Australia, the
European Union, the United
Kingdom or the United States;
or
-
want cover for excluded
losses relating to an
epidemic or pandemic or
associated travel
restrictions; or
-
want cover for existing
medical conditions that do
not meet the criteria for
automatic cover and:
|
Cancellation and Additional Expenses Plan - This plan provides the least amount of single trip cover compared to the other plan in this TMD.
This is suitable for customers who: |
This is not suitable for customers who: |
Meet the following eligibility
criteria:
-
are residents of Australia of
any age; and
-
are only travelling within
Australia, either one way or
return; and
-
are taking a trip of up to 12
months in duration within 12
months of purchase of this
travel insurance; and
-
are starting or ending their
trip at their home in
Australia.
Have the following objectives
that are met by the key
attributes of this product:
-
seek protection from
financial loss as the result
of specific defined
unforeseen events, that may
be incurred prior to or
whilst travelling. This plan
only protects a consumer
against financial loss for:
-
defined trip cancellation
events, before and while
they travel;
-
Emergency travel
arrangements and
accommodation expenses
-
Early return home; and
-
Emergency expenses to
avoid disaster
-
do not want cover for
existing medical condition(s)
that do not meet the criteria
for automatic cover.
-
want access to assistance
during their trip for
guidance, support (even when
losses may not be covered by
the policy) and general
policy and coverage
information, as they would
not likely have specialist
resources readily available
to them.
-
do not wish to pay an
additional premium for this
cover to apply to travel by
river cruise within
Australian Waters.
-
may want to tailor cover to
be more suited to their
insurance needs for their
planned travels by:
- increasing the
cancellation limit so
greater benefits are
available for trips of
higher value;
Whose financial situation is
consistent with the following:
-
Persons who can pay the full
quoted premium for the plan
and options selected before
the policy is issued;
-
Persons who can incur the
applicable excess if a claim
is made; and
-
Persons who may not wish to,
or be able to, cover expenses
themselves for events covered
by this travel insurance.
|
-
want to be covered for travel
overseas; or
-
are not starting or ending
their trip at their home in
Australia; or
-
want cover for cruises in
Australian coastal or
territorial waters; or
-
want cover for multiple trips
under a single policy; or
-
want cover for loss arising
from excluded activities; or
-
want cover for travel to a
destination subject to a “Do
Not Travel” warning issued by
the Australian Government’s
Department of Foreign Affairs
and Trade; or
-
require cover that would
cause us to be in breach of
any restriction under United
Nations resolutions or any
sanctions, laws or
regulations of Australia, the
European Union, the United
Kingdom or the United States;
or
-
want cover for excluded
losses relating to an
epidemic or pandemic or
associated travel
restrictions; or
-
want cover for Coronavirus
related events; or
-
want cover for existing
medical conditions that do
not meet the criteria for
automatic cover.
|
3. Distribution of this insurance
3.1 Distribution channels
Subject to the distribution conditions listed in 3.2, the products
outlined in Section 6 must only be
issued:
- Online, or over the phone via the application system provided by
us;
3.2 Distribution conditions
Application systems must:
-
Provide a level of detail necessary to appropriately inform
customers of the key attributes of the product;
-
Capture information including:
-
a customer’s destination;
-
travel dates;
-
names of all persons to be insured;
-
age;
-
Australian residency; and
-
screening of medical conditions that are not automatically
covered by the policy, where applicable;
-
Include controls to prevent a policy being issued where there is
indication that the customer is not within the target market set out
in Section 2;
-
Record a customer’s express confirmation that they understand and
agree to our terms and conditions, including our Privacy Policy;
-
Prominently display and provide access to:
-
Disclose applicable information including disclaimers as required;
-
Issue the required documentation in a manner that complies with
regulation; and
-
Have a user interface and any related system integrations that have
been confirmed to be secure with appropriate security testing and
that has been:
Policies must only be issued in person or over the phone where the
representatives acting on our behalf:
-
Uses the online application system provided by us; and
-
Has undertaken and passed the training required by us;
-
Uses any scripting provided by us, reads out all terms and
conditions, and obtains the customer’s express agreement, including
their consent to our privacy policy;
-
Provides relevant factual information regarding the travel insurance
product that is complete and correct;
General advice may only be provided by a representative acting on our
behalf where they are appropriately qualified and expressly authorised
by us to do so.
All marketing and advertising related to the product(s) described in
this TMD must adhere to any guidelines provided by us, and not be
directed towards customers who are outside of the target market set out
in Section 2.
3.3 Impact of distribution conditions and restrictions
The distribution channels and conditions described in Section
3.1 and 3.2 are
designed to ensure this insurance is directed towards the target market,
meaning it is likely that consumers who purchase this insurance are in
the target market set out in Section
2.
Information reported to us is used to help us determine if this TMD is
no longer appropriate.
Reporting Periods
Our distribution partners must keep a record of and notify us in writing
within 24 hours of becoming aware of the following:
-
details of any complaints regarding the insurance;
-
distribution of the insurance outside of their active agreement with
us;
-
any dealings not consistent with this TMD such as if this insurance
is issued to a traveller who is not eligible for cover.
The number and nature of complaints will be reviewed on a quarterly
basis to analyse whether this product, including how it is distributed,
continues to meet the objectives, financial situation and needs of the
target market.
5. Reviewing Target Market Determinations
We will conduct an initial review of this TMD within 24 months after it
has been published. Subsequent reviews are to be conducted every 24
months after the initial review has been completed.
Outside of the specified review period, other circumstances which may
trigger a review of this TMD include:
-
if the objectives of the target market change such that the key
attributes no longer meet the target market’s needs; or
-
significant dealings outside of:
-
if we become aware that the distribution conditions are inadequate;
or
-
there is a significant change in product performance; or
-
the value changes significantly to the detriment of consumers; or
-
significant increases in complaints and severity of claims; or
-
updates to the Product Disclosure Statement, our risk appetite or
relevant legislation; or
-
feedback from regulators, distribution partners or customers
suggests this TMD requires amendment or is not fit for purpose; or
-
significant changes in a distribution partner’s business structure
or client base.
If one of the above events reasonably suggests to us that the TMD is no
longer appropriate, we will review this TMD within 10 business days.
6. Products this TMD applies to
- COTA Domestic Travel Insurance
In this document, “we/our/us” means nib Travel Services (Australia) Pty
Limited ABN 81 115 932 173 AFSL No 308461, who deal with you as an agent
of the insurer, Pacific International Insurance Pty Ltd ABN 83 169 311
193, AFSL No 523921.