Why Are Travel Insurance Claims Denied? – Read This to Know!

Travel insurance companies follow very strict procedures on travel insurance claims. Firstly to minimise travel insurance fraud, and secondly to ensure all claims are handled consistently.  If you ever wonder why any claims of travel insurance is rejected, you must read this article to get all your confusion sorted. Here are few popular, strange and humorous reasons why travel insurance claims have been rejected.

1. Missing Original Receipts

If you have to purchase prescription medicines, always ensure that you keep your receipts, or you may find it impossible to make a claim on your insurance. It is usually a requirement to have the original receipt so as to prevent multiple claims for the same item. This is not because the insurer thinks you are dishonest, it is because there have been numerous dishonest claims in the past.

2. Alcohol Intoxication

While in the influence of Alcohol or Dugs, If you have an accident, lose valuables, or damage a personal item, your insurance is may well be considered invalid. Always check the small print to confirm what is and is not covered whilst drinking alcohol, and if not covered, ensure that you leave all expensive items in a safe and secure place.

3. Pre-existing Conditions

You must state your pre existing medical conditions if asked. Some insurers will cover these conditions for additional cost, others may not. If you do not disclose your condition when signing up for you travel insurance, and then attempt to make a claim, the claim will be denied if your medical records are consulted.  In such case, your policy could be voided in total, meaning you may have no travel insurance at all.

4. Not Consulting A Doctor

If you are cancelling or altering a holiday due to a medical condition of your own or a relative, you must see your doctor and have proof that they have advised you formally to cancel or change your travel plans. Incase you don’t, your claim is rejected.

5. Ignoring The Small Print.

Always read the small print entirety on the policy T&C to ensure that you know exactly what you are covered for and what is not included. Most cases of claims being denied result from people ignoring the small print and not realising the terms of the policy that they have signed.

One example was a woman that didn't know she was 3 months pregnant when she departed and then needed some medical assistance as a result of complications, the insurer denied the claim on the basis it was not a travel related medical condition.

6. Not Claiming within Given time

Mostly all policies are likely to have a time frame within which you must inform your insurer of any claims. Any claims made outside of this time frame risk being denied. Also be aware of any conditions where you must inform your insurer prior to spending money that you may wish to claim later.  This usually relates to medical expenses but could also be for legal advice if you are involved in an accident with other parties.

7. Unapproved Destinations

Beware when purchasing Travel Insurance as a high number of insurers will only cover you for specified destinations or that are specified in the policy document. For example, if you are travelling to Kashmir and decide to take a day trip over the border to the Indo-Pak, ensure that your insurance covers you.  

8. Incorrect Or Incomplete Claims Forms

One of the most common reasons insurance claims are denied is simply because the claim forms are filled out incorrectly or are missing important information. Always ensure that you check over the form and that you have included all necessary attachments before sending off your claim.  

9. Participating In ‘Dangerous Activities’

What we term as ‘dangerous’ can be incredibly adventurous. If your insurance states that you are not covered if partaking in dangerous activities, read the small print or ask an advisor exactly what they deem ‘dangerous’. Quad biking, jet-skiing and even a ride on a banana boat can be classed as dangerous by some insurers.

10. Trip Cancellations

Trip cancellation insurance is quite cool to buy, but double check exactly what this covers before going ahead and cancelling for any reason. Some insurers will not cover you if you cancel your holiday due to ‘An Act of God’ usually a natural disaster, or if there is a terrorist attack in your chosen destination. Likewise, cancelling due to a medical emergency of a family member or friend may not be covered –insurers may only cover for medical emergencies with immediate family or partners.

11. Purchasing Insurance Too Close To Departure Date

Some insurance packages are only effective if purchased a certain amount of time before travelling. If you purchase your insurance after you have had an accident, you must specify your injury when filling in the forms. Also, don’t wait until a natural disaster has been forecasted to book your insurance. If the news is predicting a large storm and you panic-purchase insurance, it may not be valid.

12. Extended Travel Period

Some policies are only applicable for a couple of weeks or up to a month of travel. If you intend on being away for longer than this, check that you sign up to an insurer that will cover you for the correct amount of time.

13. Ridiculous Claims

Ridiculous yet true travel insurance claims that have been denied include people claiming for the lack of snow during a skiing trip, not seeing a certain animal whilst on safari, for persistent rain whilst on holiday in Pondy, or for a parachutist landing on the tent of a family camping trip. Be realistic for what you are claiming for.

14. Purchasing Incorrect Flights

There have been cases of people claiming on their insurance because they were denied onto a flight, when they had in fact booked the wrong date or flights from the wrong airport. Such claims are straight away rejected.

Travel Insurance is an important part of planning a trip, we advice you to read the terms and conditions and also to take the policy as soon as you book your trip. Nowadays, we get travel insurance with a click of mouse or a touch of phone, then why to delay. Also filing a claim is an easy procedure, just that we need to be sensible and genuine. Happy traveling!