Written by Carter Capner Law

Updated on July 9, 2025

If you’ve been injured while staying at a resort overseas, you might be wondering whether travel insurance will cover your costs — and whether a legal compensation claim is also needed. The answer depends on how the injury occurred, who was at fault, and what your losses look like now and into the future. This article breaks down the difference between travel insurance and legal claims, and how to use both to protect your rights.

What Does Travel Insurance Cover?

Travel insurance is designed for short-term emergency relief. It can help you:

  • Pay for emergency hospital admission and medical treatment overseas
  • Cover ambulance transport or medical evacuation costs
  • Replace lost luggage or stolen belongings
  • Recoup non-refundable costs from cancelled bookings
  • Receive a daily benefit while hospitalised (in some policies)

While insurance is essential, it doesn’t provide compensation for pain, long-term income loss, or negligence. That’s where a legal claim comes in.

When Is a Legal Injury Claim Also Needed?

You may be entitled to compensation under Australian Consumer Law (ACL) if:

  • You were injured due to poor safety, staff negligence, or hazardous resort conditions
  • Your trip was booked through an Australian travel provider
  • You’ve experienced lasting impact — medical costs, missed work, emotional distress, or permanent injury

Legal compensation addresses long-term harm and economic loss — not just the immediate costs covered by your insurer.

Checklist: What Travel Insurance Usually Doesn’t Cover

  • Future loss of earnings

    If your injury reduces your ability to work, this isn’t covered by insurance.

  • Pain and suffering

    Emotional distress, reduced quality of life, or trauma is not insured — but is claimable legally.

  • Loss of enjoyment

    Missing part of your holiday due to injury isn’t covered by travel insurance.

  • Gratuitous care from friends/family

    Time spent caring for you by others can be included in your compensation, but not your insurance.

  • Permanent disability or ongoing rehab

    Long-term needs after an injury are not covered by standard travel policies.

Can I Make Both an Insurance and a Legal Claim?

Yes. In fact, we recommend it. Each serves a different purpose:

  • Travel insurance provides fast assistance with initial expenses
  • Legal compensation recovers the full cost of the injury, including your pain, lost income, and future care

Using both doesn’t disqualify you from either. Your legal claim will account for what your insurance already covered — so you’re not double-compensated but also not left out-of-pocket.

Timing: When to Lodge Each Claim

  • Travel insurance: Lodge as soon as possible — ideally while still overseas. Delays can jeopardise reimbursement.
  • Legal claim: In Queensland, you generally have three years — but many claims must begin much sooner due to pre-court steps. Seek legal advice early.

At Carter Capner Law, we help coordinate both processes — ensuring your legal claim doesn’t conflict with insurance payouts and vice versa.

FAQs – Travel Insurance vs Legal Claim

Can I lodge both claims at the same time?
Yes. You should notify your insurer immediately and begin your legal assessment as soon as possible. They address different losses.

Will my insurance payout reduce my compensation?
Your legal claim will deduct any insurance refunds received — but you’re still compensated for the full extent of your injury and long-term impact.

What if the insurance company denies my claim?
You may still be able to recover those costs in your legal claim, especially if negligence caused the injury.

Use Both Systems to Protect Your Rights

Travel insurance and personal injury claims are complementary — not competing. One provides immediate help; the other ensures full justice. If your injury has caused pain, financial strain, or lifestyle disruption, don’t rely solely on insurance to make things right.

Contact Carter Capner Law for a free case review — or visit our
Overseas Travel Injury Lawyers page to learn more.