My wife and I took out full comprehensive travel insurance…

Apologies, I had originally understood the claim related to one for your daughter's medical treatment, assuming she was also covered under the policy.

A review of the Insure and Go policy wordings shows that whilst it includes cover for cutting your trip short or emergency expenses arising out of the serious injury of a relative, such a occurred to you, the policy coverage is limited as follows:

"the unexpected death of, or sudden serious injury or illness of, your, or your travelling companion’s relative who is resident in Australia and who is in Australia at the time the event occurs, or of your business associate who is resident in Australia and who is in Australia at the time the event occurs."

So in short the policy would appear to be drafted so that it only applies if you need to travel back home due to the emergency and not in situations where you are joining up with an injured relative who is already overseas.

You can check the exact policy wording by going to their link here:

http://www.insureandgo.com.au/policy-wordings.html

This is a fairly standard clause for such insurance, as insurers will generally not cover emergency travel to other parts of the world as it would be too open to fraud (e.g. people would book a cheap holiday to say Bali, and then contrive an emergency visit to Europe at the expense of the insurer.

Unfortunately, it therefore appears the insurer is correct in denying your emergency travel type claim.

I appreciate this is not the answer you may have been hoping for but I trust the above assists your understanding.

Good luck and PLEASE rate my answer.

Patrick