Can I claim for the same insured event on 2 current travel insurance policies?

loiner

I have a bone fide claim for a 13 hour flight delay and have letters confirming the delay from the airline. My teenage children had a joint annual policy that expires in a couple of months. I took out a new annual policy for the whole family, as this will cover the children when theirs expires. As both policies were in force at the time of the delay, can I claim on both?

The insurance companies tell me I can't, but, if I have multiple life insurance products and the insured event happens, my dependents would claim on all policies, so what's the difference?

Astaroth

General insurance is based on the principle of indemnity where as life insurance isnt.

You would need to read the terms of the policy but the majority have a clause that excludes claiming off of multiple policies... there are examples that dont have these clauses in which case multiple claims could be made.

balbs

loiner wrote:

I have a bone fide claim for a 13 hour flight delay and have letters confirming the delay from the airline. My teenage children had a joint annual policy that expires in a couple of months. I took out a new annual policy for the whole family, as this will cover the children when theirs expires. As both policies were in force at the time of the delay, can I claim on both?

The insurance companies tell me I can't, but, if I have multiple life insurance products and the insured event happens, my dependents would claim on all policies, so what's the difference?

The difference is that this insurance (like accidental damage) is designed to level the playing field with you. But still check the small print, although it sounds as if they have it covered.

loiner

Many thanks to Astaroth and balbs. Just checked t's and c's for both policies and neither state that they won't pay in these circumstances. However, the lowest payer of the 2 has a clause in the delayed travel section that says I must have checked in at the airport on time, but the holiday company were aware of the flight delay and kept us at the hotel. So, in theory, I can't claim with them anyway, although I think that is an unfair condition.

courtjester

In general, you can't claim more than the loss or damage suffered to property across multiple policies - otherwise you would be making a 'profit' and property cover is designed to remedy your situation, not improve it. The normal position is that you claim 100% of the damage on one policy (of your choice) whilst declaring the existence of the other policy. The insurers will in some circumstances (subsequent to paying out) then share the loss between them.

If the first policy does not have sufficient cover to pay 100% of the loss, you can recover the balance on the second policy up until your loss is fully paid for.

Life policies don't cover property (a life has no 'fixed' value like a TV say) and hence why you can have more than one cover and these are effectively accumulative.

In the case of these travel policy extensions, these are not covering 'property' as such, but are offering 'benefits' to compensate you for inconvenience and additional expenses. The sum insured for delay is effectively arbitrary and does not relate to your financial loss necessarily, so I would say that you are entitled to claim on both policies at the same time providing this is for the 'benefit' provided. If you are claiming for a specific expense you incurred (like a hotel bill for extra accommodation), you can only claim for that once.

My advice would be to fill out a claim form in good faith for both companies and submit the written details and see what they say - don't take the word of the person you spoke to on the phone.

loiner

Courtjester,
I was thinking similarly - if I had a lost or stolen suitcase, I wouldn't expect to profit by claiming the cost of 2 suitcases. I would probably expect the insurance companies to jointly cover the value of 1 suitcase. As you say, you can't put a cost on the hardship of a long delay, so will claim on both policies. One claim form asks if there is other insurance in place, the other doesn't. I will be completely open with them and then argue it out when they no doubt try not to pay!