Travel Insurance when you have an critically ill relative

cullerne

This may seem a stupid question but we are going on holiday next week and a close relative is extremely ill and it is possible that we are going to have to cancel to arrange funerals etc. Our travel policy has expired and we need to renew. Are we going to be refused a claim on a new policy on the basis that we know it is likely that we are going to have to cancel. The holiday was booked over a month ago before the realtive fell critically ill.

weejonnie

This is not a stupid question, it has very serious implications.

Many people don't realise that the condition of a person not actually travelling is a material fact if their death would cause the cancellation of a trip. They then get upset when the travel insurers refuse to pay.

To quote one policy (Redwood)

"Non-travelling Relatives
If You have a non-travelling close relative with a pre-existing medical condition who dies or falls seriously ill and as a result You wish to cancel or curtail Your trip, You will be covered only if the relative‟s doctor states that at the time insurance was taken out he/she would not have foreseen such a serious deterioration in his or her patient‟s condition. "

It also highlights a problem with annual policies - cover ceases on a specific date and a new policy has to be purchased, with the change in material facts. (You now know about the conditions).

You say you 'need to renew'. One or two insurers will accept renewal even though there is a good chance that a claim will be made as they were covering the risk prior to renewal date. So I would approach your current insurer and see if they will renew the policy.

Other than that, I feel that there is nothing that can be done. You know of the position.

Quentin

cullerne wrote: »

This may seem a stupid question but we are going on holiday next week and a close relative is extremely ill and it is possible that we are going to have to cancel to arrange funerals etc. Our travel policy has expired and we need to renew. Are we going to be refused a claim on a new policy on the basis that we know it is likely that we are going to have to cancel. The holiday was booked over a month ago before the realtive fell critically ill.

Assuming you are using an annual policy, then when you renew you do have to disclose this issue.

However (as long as you do renew with the same insurer), then if they won't cover you they should allow you to cancel (now) and pay out for the cancellation.

But if it has already expired and is now lapsed, then you are starting from scratch, (as if you had no cover at all), and you are right that any claim associated with the sick relative won't be paid.

whitewing

It can be possible to delay a funeral until people get back off holiday, but I guess your relationship may be one where you wouldn't want to go on/continue a holiday.

For example, when my elderly grandfather died some relatives were away so we chose not to tell them until they came back, and the funeral was delayed for that and other factors.

cullerne

Many thanks for all your help on this and really confirms what I already suspected.