Why Are Travel Insurance Claims Denied?

Why Are Travel Insurance Claims Denied? – The purpose of travel insurance is to ensure that you will get something from an unfortunate event or emergency that occurs before or during your trip. Having a smooth and easy process is ideal if you happen to have a problem while on vacation and want to file a travel insurance claim. You want to avoid unnecessary hassle and having your claim denied.

It would be great if you could easily accept your insurance claim, but this isn’t always the case. Even though insurance providers spend hundreds of millions of dollars annually to pay insurance claims, not all claims are covered. In the UK alone, insurance companies pay £345 million a year to pay their customers’ claims. But why are my travel claims denied? Here are the most common reasons everyone should be aware of:

Inadequate Supporting Documents

Let’s start with the most common reasons insurance claims are denied. Supporting documentation is incomplete. When submitting your claim, you must show or provide compelling evidence to support the events that caused you distress during your trip. This evidence may include carrier delay information, police reports of accidents or illegal activities, medical certificates, or purchase receipts.

Unattended Items

Unattended items are items lost or left at their destination, such as cell phones, laptops, cameras, bags, watches, and wallets. Insurance claims cannot be made for items lost accidentally or negligently unless these items are securely locked in the car or safe. Your insurance company has a policy on this, so you should be aware of it. And to avoid rejection, always store or manage your belongings while on vacation.

Events Before Travel Insurance Purchase

Of course, events that occur prior to travel insurance are not covered. Any attempt to make a claim under these circumstances will not only be denied, but may be considered fraudulent and subject to liability. The ideal time to purchase travel insurance is immediately after booking your trip. This will be useful in future situations.

Unadvised Travels

If you do not follow the travel recommendations issued by the World Health Organization (WHO), your insurance provider will not compensate you for your claim. If you travel to a place where the WHO advises everyone not to go, it is your decision and you are responsible for it. Always check WHO’s latest travel advice to ensure safe travel.

Illegal, Hazardous, and Reckless Activities

Insurance providers will not pay claims if you commit illegal activities such as fraud, theft, dishonesty, or drug use. Claims will also be denied if you have an accident or missed your flight due to excessive drinking. You are responsible for drinking in moderation, so you cannot expect travel insurance to cover you irresponsibly.

For risky activities, the requirements depend on your insurance policy. Some companies do not cover extreme sports and activities. However, you may have insurance coverage for parasailing, bungee jumping, trekking and mountaineering for an additional insurance fee. We recommend that you read the terms and conditions of your selected travel insurance policy.

Undeclared Health Conditions

One of the reasons people buy travel insurance is for health insurance. Knowing that medical care can be expensive, it can be helpful to get insurance, especially if you are traveling. However, remember to state any pre-existing medical conditions along with supporting medical documentation when purchasing travel insurance. This will cover any medical expenses you incur while traveling and you won’t lose a lot of money.

Travel insurance is not available if you do not declare your health condition. It is also not recommended to travel if advised by a doctor.