Travel insurers give poor satisfaction, says Which?

Travel insurance had the highest claims rejection rate and lowest satisfaction rate out of all the insurance products in a recent survey by Which?

The consumers’ champion found the most frequently rejected claims were for holidays cancelled due to a relative falling ill, policy holders failing to report a loss or theft to police within 24 hours and lost or stolen belongings not being supervised to the insurers’ satisfaction.

On examining the small print of 10 large insurers’ policies, it found some required travellers to declare pre-existing conditions for relatives, including cousins.

"We think this is unreasonable and advise people to look for policies that restrict this exclusion to relatives’ conditions of which they are aware," it said.

"We thought asking for loss or thefts to be reported within 24 hours to police was not always possible," it added. "Look for policies that don’t put a time limit on when you have to report the incident to the police.

"We also found that insurers can interpret the definition of "unattended belongings" too strictly, we preferred policies which offered cover as long as luggage is "carried in line with a transport provider’s requirements".

A Which? spokesperson added: "Travel insurance policies can be complicated, so it’s no surprise that people can be confused by the small print.

"We advise people read through the policy document before signing anything. If you have a claim rejected, the financial ombudsman can take up your case if an appeal with the insurer fails."

All sales of insurance by travel agents have been regulated by the Financial Services Authority since 2007, which ABTA said recently had led to a drop in the number of travel agents selling insurance.

Travel agents now account for less than 17% of travel