Why Your Travel Insurance Provider May Not Pay Out A Claim

when travel insurance doesn't pay out

Travel insurance is only useful should you have an incident where you need a payout, of course. However, there are a number of reasons why you may not be paid for your travel insurance claim which you may have not considered or may not have been aware of.

In this article, we will highlight the most common reasons as to why an insurance company may refuse a claim. Make sure you are fully aware and will not have the trouble yourself.

Most of these reasons we are about to explain will be written in the policy wording that you receive from your provider, and we always recommend that you read this carefully. It is well worth the time to make sure you are aware of any stipulations and to amend your policy if you feel certain items do not fit with your or your trip. After all, by taking out the policy you are agreeing to the policy wording, so you must read it.

These are the most common reasons why travel insurers refuse to compensate their customers.

If you need to receive emergency treatment in a medical facility or hospital, you must contact your insurer before you receive the treatment, or as soon as it is possible to do so. Otherwise, you may not be able to claim. This is in your policy wording.

Make sure you have the emergency number for your travel insurance provider somewhere accessible for instances like this.

There are many activities that are classed as ‘high risk’ or ‘extreme activities’ in your travel insurance policy wording. These activities include things like, but not limited to

  • skydiving
  • paragliding
  • big wave surfing
  • canoeing down rapids
  • cliff jumping
  • horse jumping
  • ultra-marathons
  • biathlons
  • triathlons,
  • stunt riding and more.

Local tourist activities are usually covered within your policy so long as you are doing these activities through a local, recognized tour operator and acting under the guidance and supervision of the company and do not require any training to do so.

It is worth taking a careful read of this section of your policy as there are some activities that your insurer would class as high risk, but you would not. If you are unsure, give the insurance company a quick call or email to check.

Be safe, check the wording and amend your policy as necessary. Do not assume any activity is covered.*

  • When taking out an insurance policy you must, must, must disclose all pre-existing medical conditions. The worst thing you could do is not inform your insurance provider in case it makes your policy more expensive. Do not think that they would not find out.
  • Not telling them and having your claim rejected would be much costlier. Don’t take the risk!

Many people wrongly believe that if their travel provider goes into liquidation or becomes bankrupt, the travel insurance company will pay out.

Few travel insurance providers will cover you for this cost, or any cost associated with this. This includes needing additional accommodation.

We at Allianz Travel will cover you for the costs for any deposit you cannot recover, plus any non-refundable costs you have incurred before this has happened.*

There may be a time when you cannot travel, or you need to cut short a trip due to a relative falling ill back at home. Many policies will cover you for some if not all of the costs for this – depending on your policy, and who the relative is.

Close relatives are usually direct family members, parents, siblings or children. Often this doesn’t include aunt/uncle, grandparents or nice/nephew. Check with your insurance provider if you are unsure.*

Policy’s state that injury or illness as a result of alcohol consumption would not be covered. This is a standard clause in almost all travel insurance policies. Please check your policy wording carefully about this point and speak to your policyholder should you have any questions.

Travel insurance policies are there to protect you financially when you are abroad. We cannot stress enough how important it is to read the policy wording carefully, so you fully understand what is covered, what isn’t, and what to do in an emergency.

Not only will this information help keep you safe, it will give you the opportunity to amend your policy before you travel.

* Subject to the terms, conditions and benefits limits of the policy wording. For more information please click on the Policy Wording to read the Allianz Travel Policy Wording.