insurance claim query

mutley74

My Dad about 2 mths ago claimed on his annual travel policy after a holiday in spain. he claimed for cash after he was mugged and had his cash nicked.
Claim was accepted and was settled when he arrived back in UK.

However, just last week his house insurance with liverpool victoria, sent him a letter that the travel insurance co, have made them pay of the claim cost, and this will now go againt him as a claim on his house insurance. He is now concerned when he next renews his house insurance. He did not make any claim on his house insurance about this theft, and had no idea that the travel company did this. Is this normal, or should he take further action, if so what type?

dunstonh

It is perfectly normal for insurance companies to share claims in areas where there is dual insurance when they know that an area is dual insured.

Some travel insurance policies are cheaper because they pass full or partial responsibility to the house insurance. Others, usually the more expensive ones, will take full responsibility for the claim.

So, unfortunatly, your father now has a claim on his household insurance and therefore loss of no claims will apply. You dont say how much the claim was for but it is quite possible that the loss of no claims bonus (assuming he is in a plan that has one) will cost more over the next 3-5 years than the amount paid out to settle the claim.

mutley74

claim was for £300 cash theft, was given about £250 cheque after excess.

I am suprised that insurance companies do this, withour prior notification that it is going to effect one's house insurance. Is this usually stated on the travel ins co. T&Cs, or can one complain to the GSC about this?

dunstonh

Remember there are different types of plans. The cheaper ones will transfer the claim to home insurance on some areas where there would be dual cover. This is how they offer cheaper cover.

Its probably in the terms & conditions of the plan or could even be in sales text. Who was the insurer?

They know who insured the house contents to pass on the claim so chances are your father told them and the only reason to tell them is in cases where there is dual cover.

With what you have said so far, i cannot see any grounds for complaint.

mutley74

only provided house insurer details, as we understood so insurers can check one is not claiming from both house and travel for same issue.

I have never read this before on any insurance text or T&Cs, unless it is in some insurance jargon terms.

I am suprised that they inform one that it could effect future house insurance renewals. Can the claim be given back, as you say my dad will probably end up paying more back in higher house insurance premiums than what he was paid by the travel company.