Insurance - hidden clauses

[susieh]

We have just found out the hard way that our travel insurance did not cover our holiday.

It is an HSBC Annual policy underwritten by Norwich Union and is typical of those on the market (that info was given to us when we escalated our claim and took legal advice).

The cancellation cover we had/have only applied to trips that start and end in the UK. So literally that means that if you book the components of your holiday yourself rather than as a package, then once you leave the UK then you cannot claim for any cancellations or curtailments.

In our case we couldnt go on a cruise we had booked after we arrived because my husband was ill. We had to pay for extra accommodation in place of the cruise and then fly home as planned. The claims for the cruise and for the accommodation were both refused (medical bills were covered).

Eventually they paid the cost of the replacement accommodation - out of GOODWILL - but they were not obliged to do so.

Next year we have booked a flight to the US, then have 4 nights in a hotel then a 4 day cruise. We have confirmed with HSBC that if we were unable to do that cruise for any reason we would not be covered.

We are looking round for alternative insurance at the moment and will be calling the customer service depts of each of them to ensure cover is provided for this situation.

 

[UKDEB]

Our annual policy was due for renewal last weekend. For years we have been with Barclays (underwritten by Gresham, which I believe is part of the Norwich Union group). The premium has been pretty stable, but they'd made some changes to the structure this year and it had shot up, so we had a hunt around the internet.

In the end we plumped for the AA (underwritten by National Insurance and Guarantee Corp) as we felt it was the most complete package - good levels of cover with fewer exclusions at a reasonable price.

I've looked through the policy booklet and I can't see any mention of travel having to start and end in the UK. Under 'Curtailment' it does say that any expenses have to be pre-authorised by calling their 24 hour emergency helpline.

 

[DreamofDisney]

It may be helpful to explain that under Financial Services Authority rules, any major exclusions must be clearly set out in a Policy Summary document given to customers before purchase (not tucked away in the small print of the actual policy) - this rule does not apply to policies sold through travel agents so it is really important to ask about exclusions at the time you buy.

Always check the policy summary before you buy so you are clear about coverage. Hope this helps!

 

[Red-Snapper]

So literally that means that if you book the components of your holiday yourself rather than as a package, then once you leave the UK then you cannot claim for any cancellations or curtailments.

That statement is a bit misleading - the cruise component isnt covered because it is viewed as a separate trip starting in another country.

Cancellation if you have booked flight and hotel yourself and have left the UK IS covered. It is not just package holidays that are covered by travel insurance.