Travel Insurance - Rejected Claim Issue

pdaps

Hello MSE hope you can help me with the issue I am pursuing with my supposed travel insurance through Natwest Advantage Gold.

Approximately 2 years ago I opened a shared bank account with my partner as we were moving in together, and were also in the process of looking into a mortgage. When we opened the account, the bank representative suggested that we take the advantage gold premium account to make savings on phone insurance, travel insurance and also get access to the best prices on mortgage rates. When we were discussing the account with the bank representative I asked whether the insurance would provide a strong standard of cover for both travel/mobile and they were very quick to reassure us of the quality of it, by focusing on the headline topics - e.g. the big numbers associated with medical etc. I skimmed the policies and they appeared to check out.

Fast forward to earlier this year when I was to Thailand. In the past I would take out travel insurance when booking holidays. As this was my first trip with Advantage gold, I called them up a few days before I left to confirm that I was covered. I was assured that my trip would be insured by them, and I happily went overseas.

On the final day of the trip, my flight was at 8pm and my checkout was midday, so I checked out, leaving my luggage with the hotel concierge. When I came back to retrieve my luggage and to get a taxi to the airport my luggage was missing. The hotel did all that they could to find it and it could not be found.

When I got back to the UK (t-shirt, shorts, flip-flops in UK winter) I did all the right things. The hotel had organised a police report and I immediately lodged the claim. Upon receiving the relevant documentation, I was immediately denied due to a clause in my travel insurance policy that stated in the exclusions that they do not cover any luggage. Specifically:

"Valuables left in luggage whilst in transit and outside the control of the insured person."

In the background, I have continued to be in communication with the hotel who have lodged a claim to their own insurance company. They have been forthcoming in communication, and even given details of their own insurance company (who are either ignoring me or work very slowly), but so far it has taken 5 months and communication is getting more difficult. The hotel have an expectation that my insurance company should have paid me and would then claim it back from the hotels insurance company.

About a month ago I called Natwest Advantage Gold again to say I'd done their hard work for them, and to pay me out and I'd provide them with all the details of the hotel and insurance company so they could chase it up. They instantly denied involvement on the spot again.

As I bit frustrated with them, I decided to raise a complaint with Natwest with regards to their insurance coverage. I waited 2 weeks and called them back as I had not received any response. It turns out they had sent an acknowledgement letter to an old address which had not been associated with the account. They apologised and promised they would send it to the correct address. ~2 weeks later I had heard nothing. I called them up asking about it, they said the complaint had been dealt with and I had been sent a letter - to my old address again! The resolution to the complaint is that they had upheld the decision of the insurer and I was not covered - they gave me £30 to "compensate" me for the poor service I received.

This leads me to where I am now. Over £1000 out of pocket due to lost luggage which I still hope to claim back from the hotel myself.

My question to this forum is to ask what my next step should be. At the very least I believe I have been mis-sold Natwest Advantage Gold and I should receive compensation for it. Just today I have looked up random travel insurance policies and with those policies and many of those I would have been covered.

Should I call up regarding my complaint to specify that I now believe I have been mis-sold?
Should I take it straight to the financial ombudsman to take it forward?
Or should I just accept that I have no case and drop it.

Appreciate your help.

dacouch

What items are you claiming for and what are their approximate value?

rs65

The wording you have quoted just excludes valuables left in luggage. What is valuables defined as? Have you had any payment?

I don't think mis-selling comes into it.

hugoshavez

Also, is "in transit" defined?

By normal usage, I'm not sure it should apply if the luggage was still at the hotel?

pdaps

Approx value is £1500. No payment yet, only the £30 "goodwill gesture".

Valuables defined as
"Photographic, audio, computer, video and electrical equipment of any
kind (including CDs, Mini Discs, DVDs, TVs, electronic games, MP3
players, iPods, personal digital assistants (PDAs), video and audio
tapes), telescopes, binoculars, sunglasses, glasses, spectacles,
mobile phones, musical instruments, jewellery, watches, furs, leather
goods, animal skins and items made of or containing"

pdaps

Full text of exclusions.. May be quoting wrong part and they might be referring to the part in the italics at the bottom (also in italics in the policy).

What you are not covered for (exclusions)
In addition to anything mentioned in the general exclusions, we will
not pay for loss, damage, theft or destruction of:
a) Valuables left in luggage whilst in transit and outside the control
of the insured person;
b) Valuables left in a motor vehicle;
c) Valuables and Personal possessions which are kept in your
locked personal accommodation or safety deposit box and force
and violence has not been used to gain entry to your locked
personal accommodation or safety deposit box;
d) Personal possessions that are left in any motor vehicle
(excluding caravans and motor homes) unless they are kept in
the secure area of the motor vehicle and evidence that force
and violence has been used to gain entry.
e) Valuables and Personal possessions:
1. Caused by wear and tear, loss of value, moth, vermin and
atmospheric or climatic conditions, gradually operating
causes or by any cleaning, repairing or restoring process.
2. Being shipped as freight or under a bill of lading.
3. Which are made of china, glass or similar fragile materials.
4. By delay, detention, seizure or confiscation by Customs or
other officials.
f) Films, tapes, cassettes, cartridges, or discs that you have used
or recorded on other than their value as unused material when
we will pay the makers latest list price;
919504 4/6/10 17:51 Page 89
g) Perishable goods, bottles or cartons and their contents or any
damage caused by these items;
h) Property more specifically insured by another policy;
i) Contact or corneal lenses, dentures or hearing aids, business
samples or business equipment;
j) Sports equipment and accessories whilst in use;
k) Ski equipment and golf equipment;
l) Personal money, bonds, negotiable instruments and securities
of any kind;
m) Pedal cycles, motor vehicles, caravans, trailers, camping
equipment or parts or accessories of any of them, or household
goods, musical instruments, antiques, pictures, dinghies, boats
and/or ancillary equipment.
n) Anything mentioned in the general exclusions.
You must take care to look after your personal possessions, in
particular your valuables. They should be kept on your person or
secured in baggage, which stays with you at all times. If this is not
possible these items should be locked in your accommodation or
safety deposit box. If you don't take precautions with your property,
we may not pay your claim.

Buzby

Specifically, it is your hotel that is liable, unless they excluded it as part of the 'favour' they were doing you. Your insurer would certainly not cover you as you were not 'in transit' at the time - but remember, many refuse to cover items you take on to a plane and have placed in a locker as 'not being under your control'.

You left the goods for safekeeping with the hotel, and when you returned the items were gone. The responsibility is with the person/firm responsible for the safekeeping, and the insurance company would not pay, unless you had 'all risks' covering negligence by third parties.

All this is standard, so mis-selling wouldn't be an issue.

pdaps

I will attempt to find out exactly what clause I was excluded. If it is "Valuables left in luggage whilst in transit and outside the control of the insured person." they should still be responsible for my "personal possessions". If it is the italics at the bottom of my post above, I could potentially argue that I did take precautions with my property by leaving it with the hotel to secure?

rs65

pdaps wrote: »

I will attempt to find out exactly what clause I was excluded. If it is "Valuables left in luggage whilst in transit and outside the control of the insured person." they should still be responsible for my "personal possessions". If it is the italics at the bottom of my post above, I could potentially argue that I did take precautions with my property by leaving it with the hotel to secure?

I think you need to find out exactly why they have declined the claim. From what you have said, I agree with the points you have made in this post.

hugoshavez

Buzby wrote: »

Specifically, it is your hotel that is liable, unless they excluded it as part of the 'favour' they were doing you. Your insurer would certainly not cover you as you were not 'in transit' at the time - but remember, many refuse to cover items you take on to a plane and have placed in a locker as 'not being under your control'.

You left the goods for safekeeping with the hotel, and when you returned the items were gone. The responsibility is with the person/firm responsible for the safekeeping, and the insurance company would not pay, unless you had 'all risks' covering negligence by third parties.

All this is standard, so mis-selling wouldn't be an issue.

Sorry, respectfully disagree. The insuring clause states:

We will provide cover for up to a maximum of £1,500, per insured
person for personal possessions that are lost, damaged, stolen or

destroyed whilst on your journey.

The possessions don't have to be in transit for cover to apply.

"In transit" isn't specifically defined so must be read by its common meaning. ie valuables not covered as checked as hold luggage etc.

OP, the insurer shouldn't be declining any part of your claim under this exclusion.

If the letter you've received says it is a final decision then go straight to the FOS website and log a complaint.

The insurer will receive a notification which will prompt them to review the decision and hopefully overturn without you having to wait for an adjudicator review.

BobQ

hugoshavez wrote: »

Sorry, respectfully disagree. The insuring clause states:

We will provide cover for up to a maximum of £1,500, per insured
person for personal possessions that are lost, damaged, stolen or

destroyed whilst on your journey.

The possessions don't have to be in transit for cover to apply.

"In transit" isn't specifically defined so must be read by its common meaning. ie valuables not covered as checked as hold luggage etc.

OP, the insurer shouldn't be declining any part of your claim under this exclusion.

If the letter you've received says it is a final decision then go straight to the FOS website and log a complaint.

The insurer will receive a notification which will prompt them to review the decision and hopefully overturn without you having to wait for an adjudicator review.

I agree. Also note that a journey is defined as starting at your home and finishing at your home. Valuables will I fear be excluded as they were not under your control at the time.

But its not mis-selling.