Some of Australia's largest insurance providers have revised travel insurance policies that have long contained blanket exclusions for mental health conditions.
Cover-More Australia and QBE Insurance have recently removed exclusions in their policies that deny cover to people who cancel or change travel plans due to a mental illness that develops after they buy a policy.
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The moves have been welcomed by the public interest and mental health sectors.
"We have assisted more than 100 clients who have been treated unfairly and in many cases unlawfully by insurance companies as a result of experiencing mental health symptoms," Public Interest Advocacy Centre chief executive Jonathon Hunyor said.
![Cover-More Australia recently removed mental health exclusions in their policies.](http://web.archive.org./web/20170712124324im_/https://www.fairfaxstatic.com.au/content/dam/images/g/x/4/7/h/t/image.related.articleLeadwide.620x349.gx4514.png/1499231618057.jpg)
Mental Health Australia chief executive Frank Quinlan said he hoped more insurers would "see the sense in removing such exclusions".
The significance of the policy change is not lost on former Cover-More customer John*, 24, whose five-week holiday in 2015 was cut short when he was admitted to hospital in Croatia after an episode of psychosis.
"Like many young Australians, John went on holiday and sensibly bought travel insurance. But while he was in Croatia he developed unusual behaviours," said James Scott, associate professor and consultant psychiatrist at the University of Queensland, and John's doctor upon returning home.
"He believed he had special powers. As it got worse, he was hospitalised ... For psychosis to present completely out of the blue like this is a rare event."
![QBE was ordered to reimburse Ella Ingram the full cost of a New York trip she was forced to cancel after developing ...](http://web.archive.org./web/20170712124324im_/https://www.fairfaxstatic.com.au/content/dam/images/g/l/r/1/k/u/image.related.articleLeadwide.620x349.gx4514.png/1499231618057.jpg)
After a three-week stay in a Croatian hospital, John's travel and medical expenses had swelled to more than $17,000, which he intended to claim through his international travel insurance policy.
However, he soon learnt he was not covered, as claims "directly or indirectly arising from anxiety, depression, mental or nervous disorders" would not be covered unless "separately applied for".
![Dr James Scott, associate professor and consultant psychiatrist at the University of Queensland Faculty of Medicine.](http://web.archive.org./web/20170712124324im_/https://www.fairfaxstatic.com.au/content/dam/images/g/x/4/7/r/1/image.related.articleLeadNarrow.300x0.gx4514.png/1499231618057.jpg)
Having never experienced a mental health illness, John never thought he would need additional cover.
"Over a person's lifetime about three in 100 people will have an episode of psychosis ... and that's why you need insurance, because it's unpredictable. These exclusions are pure discrimination," Dr Scott said.
After seeking legal assistance from PIAC, John and his family were reimbursed all costs by Cover-More.
Cover-More group chief executive Mike Emmett said the change was something "the travel insurance industry, including us, has neglected for too long".
"We recognise the critical importance of incorporating specific cover for people with mental health conditions into our policies," he said.
On July 1, QBE Insurance revised its policy to provide cover due to a first diagnosis of a mental illness after a policy is purchased.
"QBE is seeing an increase in travel insurance claims for mental illness, reflective of the increased frequency of diagnosis of mental illness," a spokeswoman said.
The updated policy follows the landmark win of Victorian student Ella Ingram, who took QBE to the Victorian Civil and Administrative Tribunal, after it twice denied her claim for travel cancellation costs, due to mental health conditions.
Other providers that offer varying degrees of mental illness cover under specific circumstances or added premiums include Bupa, InsureandGo, NRMA, CGU and Budget Direct.
*Name has been changed on request