Standard Bank insurance warning

South African travellers going overseas have been hit with crippling financial burdens from medical emergencies experienced when out of the country.

Some of these claims run into the millions and have the potential to severely impact individual or family finances for decades to come. 

While many travellers have insurance for these emergencies, the rand’s recent volatility has greatly increased the cost of any claims. 

This is feedback from Nadia Reddy, Head of Short-Term Products at Standard Bank Insurance, who outlined some of the claims brought to the insurer by overseas travellers. 

Reddy said that the insurer is expecting an increase in claims as South Africans take advantage of a string of public holidays to take extended overseas trips. 

“As South Africans look forward to travelling abroad, one critical consideration that is often overlooked is adequate travel insurance, especially coverage for medical emergencies,” Reddy said.

Reddy highlighted the ongoing challenges of a weaker rand against stronger currencies like the dollar and pound, which can compound the financial strain faced by South African travellers.

When combined with the global average medical inflation rate, which is predicted to remain above 10%, the risks of travelling uninsured are more significant than ever.

“The volatile rand exchange rate means that costs abroad, especially in countries with stronger currencies, become exorbitant,” Reddy explained. 

“Medical treatments, emergency care, and hospitalisation in places like the US, UK, Canada, or Australia can quickly rack up bills into the millions.” 

Without insurance, South African travellers may be faced with crippling financial burdens, often wiping out savings or accumulating debt to cover these unforeseen costs.

The medical costs are also compounded by the cost to repatriate an individual if the medical condition requires it. 

Often, a visa requires a traveller to have travel insurance, but this may not cover all medical emergencies or be sufficient to provide cover with a weaker rand. 

Financially crippling claims

Reddy outlined some of the claims that Standard Bank Insurance clients have made so far in 2025 for medical emergencies incurred overseas. 

These travel claims cases brought forward by clients of the broker business paint a stark picture of the financial burden associated with medical emergencies. 

For example, a 66-year-old travelled to Mauritius and needed extensive medical treatment for pneumonia and air ambulance repatriation, costing over R741,000.

Similarly, a 69-year-old cyclist who travelled to the USA faced a staggering bill of R2.8 million after a fractured femur that led to further complications, including a pulmonary embolism. 

Other examples include an 83-year-old visiting Australia whose fall resulted in over R1.3 million in medical expenses. 

Another 63-year-old who travelled to Canada faced nearly R1.5 million in costs after treatment for a cerebral aneurysm.

These cases highlight the unpredictable nature of medical emergencies and the immense financial strain they can impose.

“Travelling uninsured exposes South Africans to significant risks that require costly treatments and, in severe situations, repatriation costs for returning home safely via medical transport can be overwhelmingly expensive,” Reddy said.

“Financial strain is a critical concern, as covering such expenses out of your own pocket is often unmanageable for families, particularly given the current exchange rate.”

To mitigate these risks, travellers need to prioritise travel insurance that includes robust medical coverage, as it can ensure peace of mind by covering medical expenses, repatriation costs, and unforeseen complications.

“When selecting travel insurance, it is essential to carefully read the terms and conditions to ensure you understand the medical coverage limits provided by your policy,” she said.

“Additionally, take the time to review what activities or risks are included in your cover, as exclusions can vary between policies.” 

“Comparing different cover options is equally important to strike the right balance between affordability and comprehensive coverage, ensuring that you are adequately protected during your travels for unexpected events.”

Travel insurance isn’t just a financial safety net – it’s a vital tool for protecting yourself and your loved ones from the unpredictability of your journey abroad, Reddy said.