Travel Insurance News

Travel insurance get-out clause under scrutiny

Sat, 7 Jan 2012 20:34:00 GMT

There's been a 50% rise in complaints about travel insurers changing policies after they've begun.

The problem, reported by consumer group Which?, involves cases where policyholders have developed a medical condition for the first time after starting a policy but before going on holiday.

Around one in three people in such situations who informed their insurers of such a development say they were told to pay a premium "top-up" or had their cover cancelled altogether. The insurers are doing so under clauses known as "change of risk" or "ongoing medical warranties." In one extreme case, a customer who developed a form of leukaemia was told he would have to pay nearly eight times his original premium to keep his policy active.

The insurers' actions appear in many cases to violate a 2004 ruling by the Financial Ombudsman Service which said firms normally couldn't refuse to cover new conditions that developed during the term of the policy. It said doing so was only reasonable if the condition fundamentally changed the nature of the risk being

Holiday medical treatment costs a fortune

Mon, 15 Aug 2011 18:43:00 GMT

The average cost of medical bills for Brits taken ill or injured abroad has reached dramatic levels, prompting warnings that travel insurance is more important than ever.

Sainsbury's Travel Insurance revealed details of claims made by customers for medical treatment in 10 popular holiday destinations, with the average claim being £1,333. There was some significant variation: while the average claim in Greece was just £422, the respective figure in the United States was an eye-watering £4,726.

Naturally costs depend on the treatment, with heart attacks leading to an average £8,147 claim, but even seemingly minor complaints can be pricey: the average ear infection leads to £320 in costs.

The high charges have been blamed on healthcare costs rising faster than inflation, partly because both the quality of care and the expectations of patients continues to rise.

Despite these huge financial risks, one insurer estimates that 15% of travellers still go abroad without insurance, while half of those who do take out policies don't check what is covered until after

Brits risking costly mini breaks by skipping travel insurance

Fri, 8 Apr 2011 19:48:00 GMT

British holidaymakers are taking unnecessary risks by travelling abroad for short breaks without adequate insurance, a survey suggested this week.

Insurance firm Protect Your Bubble found that 84% of people take out travel insurance for trips of a week or more, but just 48% do so on a European "minibreak."

When those who didn't take out insurance for short trips were asked to explain why, around a third said only going for a few days meant it was a risk worth taking, a third said they were covered by the European Health Insurance Card, and most of the rest said they hadn't even thought about it.

Whether it's a risk worth taking is at least debatable, though with premiums as low as a few pounds and potential costs enormous, skipping travel insurance can certainly be a false economy.

As for the EHIC reasoning, however, it's completely false. An EHIC simply makes sure the holder gets the same medical treatment from state facilities as locals get. Depending on the country, this may still mean paying for treatment. The card doesn't cover the costs of an air ambulance or repatriation. There's no payout for associated expenses such as missing a flight home,

Travel operator bankruptcy cover to be expanded

Fri, 4 Feb 2011 21:07:00 GMT

The government is planning a major expansion in the protection offered to travelers when companies go bankrupt.

At the moment, a scheme known as Air Travel Organiser's Licensing (ATOL) covers travellers who book package holidays: that is, the accommodation and flight are bought from the same operator. If such companies go bankrupt, the scheme pays a full refund to people yet to travel, and covers the cost of a flight home to those already abroad. The scheme is funded by a £2.50 levy on every customer.

The new scheme would extend the coverage to what are known as "flight plus" holidays. These are where the operator, often an online firm, sells the accommodation but technically acts as an agent buying the flight on behalf of the customer. At the moment this does not count as a package holiday and thus isn't protected.

Customers who book flights and accommodation separately will still not be covered. And the changes don't make travel accommodation redundant: medical coverage abroad is still

Travel insurance price hikes may be imminent

Fri, 3 Dec 2010 19:19:00 GMT

Travel insurance premiums may rise rapidly next year if rumours from the industry are correct.

There are predictions that cheaper policies may rise by as much as 40%, while Axa travel insurance has confirmed that an increase of at least 10% is imminent.

At least three factors are contributing to the expected increases: a growing level of fraud increasing insurer costs; a rise in the tax on travel insurance premiums in January (from 17.5% to 20%); and a weakening pound, which means that spending insurers make abroad, such as settling medical claims, works out as more expensive.

While customers can't stop the price rises, they can shop around to get the best deal, while making sure the cover on offer is adequate. It's also likely to increase the number of travelers for whom an annual policy works out cheaper.

Dan Plant of Money Saving Expert says that in most cases, anyone making more than two overseas trips (or making two trips including one to the US) will get a better deal from an annual

First snow brings flurry of winter travel insurance advice

Fri, 26 Nov 2010 19:09:00 GMT

The Foreign and Commonwealth Office has warned that 31% of Brits going on winter sports holidays do so without adequate travel insurance.

Officials gave examples of potential costs from suffering an accident abroad while uninsured, ranging from £6,400 for a broken bone in France to £23,000 for a spinal fracture in South America.

The FCO also highlighted some common myths about winter sports insurance. It said that 61% of people were unaware that most policies don't cover off-piste accidents, and that it was not widely realised that the European Health Insurance Card, while covering the costs of medical treatment under the local country's health service, does not pay for repatriation costs such as an air ambulance.

Another problem highlighted by officials was holidaymakers being unaware that alcohol has a stronger effect at high altitude, such as ski resorts. They noted that most insurers will often refuse to pay out if alcohol is considered to be a contributing factor to an accident.

And one official even noted that the risks aren't confined to the slopes: icy surfaces can lead to slips and falls around resorts, especially among holidaymakers not used to such

Post Office voted Best Travel Insurance Provider

Mon, 8 Nov 2010 21:00:00 GMT

The Post Office has won the award for Best Travel Insurance Provider at the 2010 British Travel Awards.

The annual gala awards night took place on 4th November in London where the Post Office beat competition from Insure and Go and Lloyds TSB to take the accolade for the fifth year which is voted for by the British public.

The British Travel Awards is the largest awards programme in the UK created to reward the best companies in travel and is recognised by consumers and travel professionals.

Commenting on the results, Chief executive of the British Travel Awards, Lorraine Barnes Burton said: "The British Travel Awards are widely considered to be the “Oscars” of the travel industry! It’s the largest awards programme in the UK, created to reward travel companies, with the winning accolade being the benchmark for excellence when it comes to finding out who really is the best in the business of travel for the UK consumer. This year, more than any, the competition was fierce and all winners are to be congratulated on their achievement."

A full list of the winners can be found at

Travel Insurance now required for holiday's in the Channel Islands

Fri, 13 Aug 2010 19:10:00 GMT

Holidaymakers are being reminded that they will need travel insurance if they visit the Channel Islands. The destination is no longer covered by a longstanding agreement with the British government.

The Channel Islands are not part of the United Kingdom, but rather are a crown dependency. This means that they belong to the Queen, but have their own legal powers.

Until last year, there was a reciprocal agreement between the Channel Islands and the United Kingdom which meant visitors to the Islands could receive free emergency health care, funded by the British government. This was withdrawn because the British government felt the agreement no longer offered value for money.

Visitors should also be aware that the Channel Islands are not part of the European Union, which means treatment is not covered by the European Health Insurance Card scheme.

Those who already have insurance, for example annual policies, should check with their providers to make sure it does cover the Channel

Travel insurance compulsory for Cuba visitors

Fri, 30 Apr 2010 22:54:00 GMT

The Cuban government has announced that travel insurance will be mandatory for all foreign tourists from 1 May.

Originally the country's government had said only policies from a list of approved providers would be acceptable. No such list has been published yet, despite requests, and it looks as if officials have now dropped the idea of an approved list.

Instead it appears any policy will be acceptable, as long as it covers the entire duration and includes coverage for an air evacuation from the country.

Visitors who arrive without insurance will be allowed to enter the country if they buy a policy from a local company. This is expected to cost around £2 per person per day and may offer less comprehensive cover than most British policies. In particular, pre-existing medical conditions may nor be covered.

It's important to note that several major travel insurance companies specifically exclude Cuba from the list of countries covered by their policies. As with all countries, insurers may also consider policies invalid if travel takes place while a Foreign and Commonwealth Office advisory against travelling to a country is in effect. At the moment this isn't the case in Cuba, but such advice has been in place

Volcanic ash fallout creates interest in premium travel insurance cover

Fri, 23 Apr 2010 18:11:00 GMT

One price comparison website is reporting that the aftermath of the volcanic ash clouds from Iceland has not only led to more interest in taking out travel insurance, but has prompted more people to consider so-called "premium policies".

That name doesn't refer to the money paid by the policyholder, but rather the level of cover taken out and the type of optional extras added to the policy. These include cover for delays, both in terms of compensation for lost holiday and in covering expenses that are incurred such as hotel costs.

According to Moneysupermarket.com, traffic to its travel insurance site rose 26.56% during the time that flights were grounded. As it's a price comparison site, this appears to be down to people actively seeking to take out insurance, rather than merely checking up on existing policies.

It's important to note that while events such as the ash clouds will focus people's minds on the general issue travel insurance, such freak events aren't always covered. They can be classified as a disaster or act of God, which is why prospective travellers must always check the small

Volcano chaos sparks travel insurance queries

Sat, 17 Apr 2010 10:05:00 GMT

The closure of all British airspace over safety fears after volcanic ash drifted over Britain has left passengers consulting their travel insurance policies.

European laws require airlines to offer customers a full refund or a transfer to a new flight after such a cancellation. They are also required to offer some meals or refreshments in the event of a lengthy delay.

However, some associated costs are not the responsibility of airlines and instead fall to travel insurance. These include accommodation and hire car rentals which can't be used if a holiday has to be cancelled because of a delay.

Whether insurers cover this varies from policy to policy. Aviva has already said its policies only cover cancellations which are down to individual circumstances such as family illness or bereavement. Other companies, including RBS, say that they will consider claims. The incident is likely to be classified as either an "act of God" or a "catastrophe", which means many insurers may retain discretion about paying out on policies.

Travelers have also been warned against taking out insurance solely as a result of the ash cloud. Insurance only covers unforeseen events and thus any policies bought now will not cover losses that directly

Post Office travel insurance voted best provider

Wed, 12 Nov 2008 14:26:23 GMT

The Post Office's travel money and insurance services have both claimed top placings at the 2008 British Travel Awards.

The Post Office bureau de change service won Best Foreign Exchange Company beating competition from several competitors. The Post Office was also voted Best Travel Insurance Company for the third year in a row.

More than 90,000 votes were cast by consumers and industry professionals across a range of categories at the awards, which are highly regarded in the indu

Post Office head of travel services, Helen Warburton, commented... "It’s an honour to be chosen as the people’s favourite travel money provider and travel insurer again this year. We have the largest bureau de change network in the UK handling 14 million transactions annually and issue over one million travel policies every year. We continually review our services to ensure they meet customer

Saga travel insurance critical of insurers penalising T5 passengers

Thu, 17 Apr 2008 11:34:23 GMT

Following the numerous baggage handling problems at Heathrow's terminal 5, some travel insurers have introduced exclusions on their policies which prevent claims for lost baggage from passengers travelling via T5.

Insurers including Churchill and Direct Line have confirmed that they will exclude cover for lost baggage and delays on new policies. However, not all insurers are following suit with Insure & Go, Norwich Union and Saga travel insurance still providing cover for T5 travellers.

Saga has moved to reassure travellers that not all providers are taking such a hard nosed view. Lisa Harris at Saga commented... "Saga travel insurance is not planning to introduce any new exclusions for those customers travelling from terminal 5. The decision of some companies to introduce new exclusions is, in our view, an assault on common sense. Saga Travel Insurance has always encouraged people to ensure they are taking out full insurance protection when travelling abroad as the consequences of not doing so can be nothing less than devastating. Other insurers that are introducing arbitrary exclusions of this nature will only encourage people to take out policies that are unlikely to meet their needs."

As always, the advice given if you

Check your travel cover to avoid baggage crisis

Sat, 25 Aug 2007 11:36:23 GMT

In a response to a growing number of claims for lost baggage compounded by recent security restrictions, the British Insurance Brokers Association (BIBA) is urging travellers to check their insurance to ensure any valuables checked into the hold of a plane are properly covered.

This highlights the problem that many travel insurance policies do not cover valuables which are checked into the hold, and will often stipulate that you keep them under your control in your hand luggage or about your person. However, following stricter hand luggage restrictions more passengers are checking in items such as foreign currency and portable computers.

In an effort to clarify the issue, BIBA has issued a list of items which may not be covered by travel insurance when packed into a suitcase which is then checked into the hold:

Sunglasses and spectacles
Photographic equipment including accessories
Computer, radio or audio equipment (including CDs)
Electronic equipment including electronic games, mp3 players, computers and mobile phones
Telescopes and binoculars
Leather, suede or fur clothing
Personal jewellery, items of gold or

One in five risk holidays without travel insurance

Wed, 15 Aug 2007 11:37:23 GMT

A new survey by Moneysupermarket insurance has revealed that too many UK holidaymakers are prepared to risk travelling without buying travel insurance.

With so many destinations available at the click of a mouse and cheap internet deals easy to come by, it appears that many are neglecting to protect themselves and their belongings against the most common holiday emergencies. A staggering one in five of us travel without insurance, and half of those do so intentionally with the rest forgetting put cover in place. Men are worst with 12% deliberately travelling uninsured compared to nearly 9% of women. Alarmingly, 4% of those surveyed admitted that they never take out any travel insurance cover.

Director of insurance at Moneysupermarket.com, Richard Mason, said... "With the prospect of spending a few days in the sun, it appears travel insurance is the last thing on the mind of some British holidaymakers. Whilst they might think nothing will happen to them while away, travel insurance is vital for claiming on cancellations, lost cash, public liability and providing emergency medical treatment. It gives you added peace of mind should anything go wrong."

The research also showed that UK travellers in their twenties are most likely to

Free missing child cover on Insure and Go travel insurance

Tue, 7 Aug 2007 11:39:23 GMT

UK specialist insurer, Insure and Go Travel Insurance has announced that it is to include free missing child cover as standard on all it's policies.

Policies will be extended to cover all children up to the age of 18 who have been missing for more than 24 hours after an initial report to the police and will pay out a maximum of £110,000 to cover the cost of accommodation, translators and any media publicity required to help locate the child.

Managing Director of Insure and Go, Perry Wilson, said... "We pride ourselves on our ability to give customers peace of mind when they go away. Following the disappearance of Madeleine McCann we received calls from concerned parents asking what support they would receive from their travel insurer if their child went missing whilst on holiday. At the time this may not have been covered in some cases so we decided to add it to all of our travel insurance policies for free."

Every year in the UK, up to 400 children under the age of 14 and around 950 children aged between 14 and 17 are reported missing to the Police National Missing Persons Bureau.

Perry Wilson continued:

Post Office cuts the cost of travel insurance

Tue, 24 Jul 2007 11:40:23 GMT

The Post Office travel insurance has announced summer special discounts on its range of policies.

Premiums for annual travel multi-trip policies will be cut by £10 per person and single trip policies for six days or more will be reduced by £5 per person from 2nd July until 31st August 2007.

The discounts, which are available on European and Worldwide travel, are intended to encourage more travelers to take out adequate cover for their holiday this summer. Figures released by the Post Office show that nearly half (47%) of holidaymakers are still not taking out any travel insurance cover when they go abroad.

When questioned about the reasons for not buying travel cover, 46% said it was a waste of money and didn't think they'd need it. One in eight people (14%) said they simply forgot to buy it and a further 12% said the cost put them off.

Of those surveyed, holidaymakers in London are the biggest risk takers with 55% saying they had been away without cover at least once. Travellers from Scotland, the Midlands and Wales and the rest of the South are slightly more cautious (48, 45 and 46% respectively had not taken out insurance). Holidaymakers from the North