Travel Insurance question (not package holidays)

This had me so puzzled, I had to find the article, here is the link:

http://www.thisismoney.co.uk/consumer/travel/article.html?in_article_id=447444&in_page_id=1093

Apologies now _ I have to go and pick someone up from the airport - don't have time to even read the article - but if nobody else picks it up, I'll try to get back to it tomorrow - truth be told I am dying to know what it says, lol - but needs be.

Hi ...

Your questions are very valid, and have an importance for anyone arranging trips on a DIY basis. I have chosen to answer on the basis of the level of importance I believe should be attached to your question - makes it more than kind of lengthy and involved (no apologies for that because it is complex, ok).

If you are brave/foolish/interested ... or have nothing better to do ... let's look in the Pandora's box that has been opened. If you are not - and wish to remain semi-sane - stop now.

Imho there are:

1) General issues involved - the initial growth in package holidays gave rise to an insurance market which designed cover (and exclusions) which matched the risks involved and which the insurance market was willing to give cover for. The change to many of us now arranging holidays on a DIY basis does call into question as the article, and you, have correctly pointed out - has the insurance industry overall been slow to adapt to those changes?

2) Specific issues involved - you are always strongly recommended to read all of the terms and conditions of any insurance policy - how many really do until a claim arises? At that moment of claim - the specific and individual circumstances of the claim, and every word of print gain a critical importance - what is actually insured, how much of the loss is insured, what are the excesses if any, what is excluded, how much does your opinion of the loss match that of the Insurer - you only need to read the posts on this thread in MSE to find daily evidence of those aspects - and too often it may matter little whether you have or have not read the policy- what may matter is whether you have "fortune telling" abilities.

3) Issues arising from the differences between Insurers - How does anyone feel when they discover (only after the precise nature of the claim is known) that some Insurers would have paid YOUR claim, but the Insurer YOU chose will not - or something I have found since starting to look at your question - how it may even be the SAME insurer who may provide cover under an annual travel policy but NOT provide similar cover under their single trip travel cover, or in reverse - (examples below).

Hey ... remember you still have the option to stop, ok?

Still here? Ok, let me illustrate those three aspects with only one example, to preserve both our sanities - (taken from Direct Line - the link I used is at the very foot of this post):

At the end of the article from the Daily Mail it mentions "Disaster" cover:

This insurance will also cover you if you have to cut your trip short because of a natural disaster such as Hurricane Katrina.

Many standard policies don't cover you in these situations, though Direct Line and Lloyds TSB are among those that do.

1) General issues: In both of the two clips below you will see that Direct Line say it is a "new" section not yet showing in the policy schedule - this illustrates that Insurers are becoming aware of changes in the market (consumer and competitor changes) and adapting to them.

2) Specific issues: Imo that awareness of consumer and competitor change will continue to grow, so what may be true today will not be true tomorrow - and is one of the reasons why answering your question is fraught with dangers. For example say you have an annual travel policy - in force today - it may not - yet - have the cover you needed for your claim - and it may NOT be added until the next renewal. However - the very same Insurer may include it - today - in every "single trip" travel policy they issue.

3) Differences between Insurers - or even with the same Insurer:

a) The DM article mentions Hurricane Katrina as an example, Direct Line also mentions "tidal wave" - remember the tsunami - that alone (for me) illustrates the complexity in all of this, one or two words included or not included makes
the difference - and its criticality only becomes evident - after - the claim has happened. You read the policy from YOUR chosen Insurer, you read every single word - but how do you read the words that are not there - and relate that to the precise circumstances that eventually befall you?

b) It's in the small print" - words always associated with the insurance industry. An apparently small, but very good, and to me very important, example to illustrate this point is in the two clips below. If you have the annual policy with Direct Line the excess is £35.00, and if you have the single trip policy the excess is £40.00.

My point is not that I think £5.00 is important, nor why on earth have DL chosen to have two different excesses for the very same cover.

My point? It is why it has always been and will always be well nigh impossible to give specific qualitative advice when anyone asks "What is the best insurance policy for ......?"

Because what is really being asked is "No matter what happens - tell me the insurance policy that will pay my claim?" It cannot be done.

Welcome to Pandora's box ... I do really wish I could tell you that one day it will close with all the questions answered. But it won't ever happen in the world of insurance - unless you happen to be a fortune teller!



PS: No promises - but because I think your question addresses issues of importance - I may attempt to prepare a simpler set of bullet points which address at least some of the issues as a form of check list - but I stress, and I really do stress- absolutely no promises, because I am not sure it can actually be done.

Direct Line extracts from here (and will help if the above clips are not easily readable):

http://www.directline.com/travel/cover.htm