Staysure policy cancellation not possible?

gpf1

My parents took out an annual travel policy with Staysure in August 2013, which included cover in the USA for a holiday in 2014. In October my father was prescribed statins and he duly informed Staysure. Their response was to advise he was no longer covered for pretty much any medical problems in the USA unless he paid an additional £300.

As this seemed a fairly hefty increase he asked for the policy to be cancelled and the remaining 9 months to be refunded but was told this was not possible.

Is this normal practice amongst insurers? It seems an extremely sharp practice to me. I've no personal experience with travel insurance but for car insurance if you changed car and your insurer wished to raise the premium I believe it would be normal for them to allow policy cancellation if you didn't like their quote.

dacouch

Which month in 2014 is the USA trip?

magpiecottage

If the policy document does not say that trips to America will require an additional premium if he is on statins (and that was not drawn to his attention at outset) I think he would have a valid complaint against the insurer and be entitled to require it to maintain the policy.

It would, though, still be entitled to change the terms at renewal.

That said, an travel insurers' standard terms do exclude travelling against medical advice.

dunstonh

Are they sure they took the option to include the USA when they bought it?

gpf1

Update - a different operator at Staysure now says they can get a pro-rata refund so they have effectively cancelled the current policy and taken out a new one to include the new pre-existing conditions. We'll have to wait and see whether the refund materialises.

dacouch

gpf1 wrote: »

Update - a different operator at Staysure now says they can get a pro-rata refund so they have effectively cancelled the current policy and taken out a new one to include the new pre-existing conditions. We'll have to wait and see whether the refund materialises.

They may save a lot more money if you answered the questions asked.

gpf1

January, and yes, they specified USA on the original policy.

magpiecottage

If the policy does not specify that the insurer can, in effect, change the terms and conditions part way through (and draw this to the policyholder's attention before it started), I think there is a valid complaint.

Whilst it is legitimate to charge more for an additional risk at outset, the insurer ought to take account of the possibility that treatment might be required during the validity of the policy which increases the risk without making travel medically inadvisable.

Get the new policy in place so cover is there for the holiday - then complain that it should not have been required.

The insurer may refund you out or may risk a £550 FOS fee to save £300.