Mr Carter said most travellers would be shocked to learn their policies had a hidden clause, with some insurers “not disclosing the exclusion and misleading consumers” until it is too late.

One family alleged that insurer Cover-More refused their claim by claiming the insured person was intoxicated. The family fundraised to have her return to Australia, where she eventually died.

Another family has been left with $500,000 in medical and repatriation bill because a separate insurer denied their claims on the grounds that the injured person had alcohol in their system.

Referring to Cover-More, Mr Carter alleged the alcohol exclusion was buried on page 52 of their product disclosure statement and potential policyholders would not know about it “because there is no reference to the exclusion anywhere on their website”.

“As well, the term ‘too much alcohol’ is far too vague to be able to be determined by the secondary means that are specified, which includes the insured’s own admissions, the description of events, or a third-party witness report,” Mr Carter said.

Mr Carter said Qantas’ travel insurance can reject a claim if a person puts themselves in danger from alcohol use, and the Southern Cross Travel Insurance may also reject a claim “if you put yourself in danger under the influence of alcohol”.

Mr Carter has warned travellers against making statements about their alcohol consumption before seeking legal advice.

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“These blanket statements are simply an excuse to deny claims.

“The insurer should prove its case that the accident was caused by alcohol consumption in court before denying the client.

“An injured person could be giving up serious rights by making confessions to insurance adjusters, who will then go behind their back to deny their claim,” Mr Carter said.