Advice needed - Travel insurance refusing to pay out

dacouch

On 9 February 2000, Miss S bought insurance to cover her holiday, which was to begin on 20 February. On 17 February, she injured her back and had to postpone the holiday. A month later, she gave up hope of being fit to travel and cancelled the holiday. She submitted a claim for the cancellation cost, but the insurer refused to make any payment. It explained that she had asked for the policy to come into force on 20 February, which was after her injury had occurred. Even though the cancellation date was after the policy's start date, the insurer considered that the event leading to cancellation had pre-dated the insurance.

complaint upheld
It is normal practice for policyholders to ask for their insurance to start on the date they book a holiday so that cancellation cover operates immediately. Miss S had bought the policy from her travel agent, but he had apparently not given her any advice as to how she should complete the application form. She had not intentionally inserted an incorrect date for the policy to start, but it was not the insurer's fault that she had asked for cover to begin only on the date of departure. On a strict interpretation, Miss S was not entitled to reimbursement of the cancellation charges. However, owing to the unusual circumstances, we asked the insurer to meet the claim without admitting liability and it agreed to do so. We could not agree that Miss S was also entitled to interest, or to reimbursement of the fee her GP charged for completing her claim form.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/7/july-travel.htm