“For many people, choosing the right hotel and imagining themselves relaxing by the pool may all be part of the fun. But the same level of attention may not be paid to travel insurance.” These were the words of Caroline Wayman, chief ombudsman and chief executive of the Financial Ombudsman Service (FOS), as the FOS published data and case studies on last year’s travel insurance complaints.
Around 3,000 complaints about travel insurance reached the FOS in 2017, with issues involving advice or sales but mostly they related to claims. Wayman said a lot of times the disputes centred on what’s covered and what’s not.
The case studies included instances of claims being rejected because of the holidaymaker’s alcohol consumption. In one case the FOS didn’t think the evidence showed it was more likely than not that excessive drinking had caused the accident – favouring the claimant and asking the insurer to compensate. In another it was ruled that the accident was likely to have been caused by too much alcohol and that it wouldn’t have happened otherwise.
Search and compare product listings for Travel Insurance from specialty market providers here
“Insurers may choose not to pay out if they believe someone’s been drinking excessively – although, as we’ve highlighted, this doesn’t necessarily mean holidays should be totally alcohol-free,” said Wayman. “In each case, we’ll need to carefully weigh up all the evidence to decide, on balance, whether the insurer has made the right call.”
The FOS stressed that its job is to decide whether the insurance provider applied the terms of the policy fairly. If it finds a policy term unclear or thinks the insurer applied it in an unfair and unreasonable manner, the FOS may decide that a claim should be paid even if the circumstances are not strictly covered.
“If holidaymakers put the right protection in place – and insurers continue to focus on getting things right – then, even if a trip doesn’t go to plan, making a claim won’t be any more stressful than it needs to be,” said the chief ombudsman.
Related stories:
New travel insurance promises zero medical questionnaire
Cruise insurance: Helping consumers make better choices
.jpg)
