4 common reasons travel insurance claims are denied
Insurers say only about 2%-3% of travel insurance claims are denied every year. This is true. But let me also present the other side of the story. Every once in a while, a high-profile case hits the news about a claim that was denied. A good example would be, while on vacation, someone gets sick and receives medical treatment. Four months later when they are home, they are hit with a huge bill from the hospital. The insurance company denies the claim. They are shocked and crushed.
It is important for Canadians to understand what their insurance covers and does not cover. Warning: misinterpretation of a policy can lead to an automatic denial when the time comes to file a claim.
Here are four reasons your travel insurance claim might be denied.
A pre-existing condition
Nearly all travel insurance policies exclude claims related to a pre-existing condition. A pre-existing condition is usually defined as an injury or condition the traveller had before purchasing their insurance policy.
However, there are some specialized plans on the market that will cover pre-existing conditions under certain circumstances. If you’re in need of this kind of coverage, it’s a good idea to talk to your insurance broker.
Lack of documentation
If you fail to get proof of all your costs, you might be out of luck. Doesn’t seem like rocket science but you can’t expect your insurance company to pay for an undocumented loss. For instance, if your flight is cancelled, ask for written proof. The airline reps can print it for you. Further, ask the hospital or clinic to include all bills of every service you were given. When in doubt, always get a receipt for everything.
You claimed for expenses that aren’t included
Please remember every insurance company has a different policy. That’s why it is so important to understand what you are buying and signing. In fact, each policy will have a list of “exclusions” or claims that it will not cover. A simple example would be, many travel insurance policies exclude injuries resulting from extreme sports such as skydiving. If you are not clear about what your policy covers, speak to your insurance broker.
You didn’t fill out the form correctly or you are missing information
Lack of disclosure is a big no-no when it comes to filling your insurance application forms. Additionally, inadequate disclosure of health is probably the biggest mistake a traveller can make on an insurance application. Heck, sometimes your doctor might not share your medical history with you because they might consider it unimportant. However, your insurer will say otherwise. So, always ask your doctor for a copy of your medical records.
Before you pack up for a vacation in the near future, keep the four reasons mentioned above in your mind and most likely, your claim won’t be denied. And remember, you can't make a claim if you don't have travel insurance in the first place, so make sure you get a policy before taking off.
Bon Voyage.