What happens if you have Holiday Insurance twice and need to claim?

FrankFalcon

Hi all

Early in the year I took out an annual Holiday insurance policy with Zurich.  Six months later, whilst booking a holiday on the website Booking.com I clicked the box to take out insurance (Axa) (forgetting that I already had an annual policy in place).  Unfortunately, in August I slipped and broke a bone in my back.  I was told by the consultant (in writing) that I should not travel.  Therefore, I made a claim with Zurich on my annual Policy and a claim with Axa on the policy I had booked with booking.com.  On both companies claim forms I volunteered that I had 2 policies.  Since then, Zurich have blanked me and Axa has asked me to provide all the cancellation docs etc, which I have done  As an aside, I should say that I am getting the run-around off Axa, despite providing them with everything they have requested.  

However, my question is...What happens in this case? Which company should pay out? Do they both pay out in full? Do both companies pay 50% each? To confuse it even further, I discovered the other day that I have free holiday insurance through my Co-Op bank account...I have not claimed from Co-Op.

Thanks in advance all. 

Grumpy_chap

FrankFalcon said:

Hi all

Early in the year I took out an annual Holiday insurance policy with Zurich.  Six months later, whilst booking a holiday on the website Booking.com I clicked the box to take out insurance (Axa) (forgetting that I already had an annual policy in place).  Unfortunately, in August I slipped and broke a bone in my back.  I was told by the consultant (in writing) that I should not travel.  Therefore, I made a claim with Zurich on my annual Policy and a claim with Axa on the policy I had booked with booking.com.  On both companies claim forms I volunteered that I had 2 policies.  Since then, Zurich have blanked me and Axa has asked me to provide all the cancellation docs etc, which I have done  As an aside, I should say that I am getting the run-around off Axa, despite providing them with everything they have requested.  

However, my question is...What happens in this case? Which company should pay out? Do they both pay out in full? Do both companies pay 50% each? To confuse it even further, I discovered the other day that I have free holiday insurance through my Co-Op bank account...I have not claimed from Co-Op.

Thanks in advance all. 

One of the policies will manage the claim and payout.  They will recover a portion from the other policy.

MyRealNameToo

FrankFalcon said:

Early in the year I took out an annual Holiday insurance policy with Zurich.  Six months later, whilst booking a holiday on the website Booking.com I clicked the box to take out insurance (Axa) (forgetting that I already had an annual policy in place).  Unfortunately, in August I slipped and broke a bone in my back.  I was told by the consultant (in writing) that I should not travel.  Therefore, I made a claim with Zurich on my annual Policy and a claim with Axa on the policy I had booked with booking.com.  On both companies claim forms I volunteered that I had 2 policies.  Since then, Zurich have blanked me and Axa has asked me to provide all the cancellation docs etc, which I have done  As an aside, I should say that I am getting the run-around off Axa, despite providing them with everything they have requested.  

However, my question is...What happens in this case? Which company should pay out? Do they both pay out in full? Do both companies pay 50% each? To confuse it even further, I discovered the other day that I have free holiday insurance through my Co-Op bank account...I have not claimed from Co-Op.

It comes down to the terms of the policies in question, most will cover the situation of multiple policies covering the same risks. 

For things like Home and Motor they normally state there is no cover if any other policy exists that covers the risk. Travel more commonly says costs will be shared if multiple insurers cover the risk.

In the case of the former, if all policies state that then they will share the costs, if two policies say it but a third says something else then the cost will be born by the third alone. If all say they will share then they all will contribute. 

In principle there is no case where you end up with nothing but it often will create delays as the insurers have to negotiate with each other on how the costs will be shared. For example if you were claiming £1,500 from two policies with one having a £500 limit and the other having a £3,000 limit. One argument is that the former pays the £500 and the later pays £1,000 as they split the costs evenly but the first policy doesnt have the limit to pay £750 so the second pays the extra, another argument is that they pay out on a 1:6 ratio per the relative limits. Additionally they have to agree if one pays you and reclaims the funds from the other or if they pay their share directly to you. 

Ultimately it's their decision though, if an insurer is odd they can decide to pay you in full and not look to the other insurers to contribute even though they are entitled to. 

The one obvious thing you can't do is claim the full cost from each of them. 

TELLIT01

It's possible that each policy will cover a percentage of the cost.  The downside if that happens is you may have 2 lots of excess to pay.

Vienss

In cases where you have multiple travel insurance policies, you can’t claim the full amount from each — insurers apply a “contribution clause.” This means the companies will decide between themselves how to share liability, usually splitting the payout proportionally. You’ve done the right thing by disclosing all policies. Typically, one insurer (often the first contacted) handles the claim, then seeks contribution from the others. Keep following up with both Zurich and AXA in writing, referencing your claim numbers. Avoid double-claiming and provide consistent documents. Co-Op coverage can remain unused unless the others refuse payment.