Topic: Travel Insurance

Misleading information led the insured to believe the scope of cover was wider than the insurer intended to offer.

Karen’s daughter, Harriet, went to the United Kingdom for a year’s exchange. Prior to Harriet’s departure she suffered a cardiac arrest. Harriet left for her exchange as planned. However her travel insurance company said that any losses resulted from a heart-related event would not be covered.

Insured failed to take reasonable care of his property when he left his bag in the baggage storage area on a public rickshaw, with people getting on and off, 2.5 metres away from where he was sitting while he was sleeping.

Jake suffered a traumatic experience during his stop-over in Kuala Lumpur on the way to the United Kingdom. After visiting a bar for a few drinks, Jake said he was drugged and mugged. His insurance company declined his claim because he had been drinking prior to the incident.

Gerry and his wife Mary booked a holiday to Antarctica. When Gerry bought travel insurance, he had a suspected haemorrhoid. Later, after further examination, Gerry was diagnosed with bowel cancer. His insurer denied Gerry’s claim for cancelling his trip because Gerry had a pre-existing medical condition.

While on holiday in America, you receive terrible news. Your mother, who has been living in London, passes away. You arrange to travel to her funeral and meet with family and friends. After the funeral you return to America and are able to catch your scheduled return flight to New Zealand. Once home in New Zealand you file your travel insurance claim for return flights from Los Angeles to London. Your claim for the flights is declined because your mother was not resident in New Zealand and you did not return to New Zealand for the funeral. Is this reasonable?

Complainant was unable to board her flight to Fiji because she did not have six months’ validity on her passport. The insurance company declined the claim on the basis that the complainant’s loss was not unforeseen and not outside her control.

Laurence’s father is diagnosed with bowel cancer in August 2013 at the same time Laurence starts planning an overseas trip for his family in July 2014. Sadly, Jim passes away on 5 July 2014 and Laurence reschedules the trip for later in the year. FSCL investigates whether there is cover for the rescheduling costs under Laurence’s travel insurance policy.

Return flights to South Africa booked for a travel period of 50 days. You misplace your Ipad 2 at Heathrow while in transit, and make a claim, to discover that you are only covered if your travel period is for 40 days or less.

While Olivia was on holiday she damaged her rental car. Olivia’s insurance covered all direct costs of repairing the car. However, Olivia was liable to pay the rental car company for other costs which were not classified as “direct costs” by her insurer.