/ Travel insurance rant

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chris_r 19 Mar 2020

I have an annual travel insurance policy which I renew each year. IN early Jan I booked a holiday for this June. I've just renewed the policy (without a break in cover), to find there is now an exclusion for COVID-19 for new policies, so my trip is no longer covered.

I totally understand them not insuring newly booked trips, but this seems unreasonable. 

Just check the small print if you have annual policies.

Neil Williams 19 Mar 2020
In reply to chris_r:

A lot of policies won't cover it anyway - pandemics often come under "force majeure", the sort of thing that isn't covered because if it was it might cause mass failures of insurance companies.

BnB 19 Mar 2020
In reply to chris_r:

I read in the FT today that this trick has been criticised in new guidance by the regulatory authorities. You have a sound basis for expecting continuity of cover. I can't find the link now but have a google around and then go back to your insurer.

On second thoughts, you booked the holiday under the old cover so I think you might be fine. Again best check direct.

Siward 19 Mar 2020
In reply to chris_r:

This was discussed on radio 4 yesterday. Many callers in, when reading the fine print on page 36 of their policy, or whatever, we're discovering that pandemics were not covered. Very misleading when the cover is touted as 'cancellation insurance' and advice was to contact the ombudsman and complain where the relevant clause is so well hidden as to be unreasonable 

BnB 19 Mar 2020
In reply to BnB:

> I read in the FT today that this trick has been criticised in new guidance by the regulatory authorities. You have a sound basis for expecting continuity of cover. I can't find the link now but have a google around and then go back to your insurer.

> On second thoughts, you booked the holiday under the old cover so I think you might be fine. Again best check direct.

Here you go https://giftarticle.ft.com/giftarticle/actions/redeem/aad8d190-73dc-4d27-8b4b-bf854e656af5

Dax H 19 Mar 2020
In reply to chris_r:

You would like to think in a fair world that because you booked under the original cover that you would be covered but there is nothing fair about the parasitic weasels in the insurance industry. 

1
chris_r 20 Mar 2020
In reply to BnB:

Thanks for the link.

JohnnyW 20 Mar 2020
In reply to Dax H:

> You would like to think in a fair world that because you booked under the original cover that you would be covered but there is nothing fair about the parasitic weasels in the insurance industry. 

Could not agree more

1
brianjcooper 20 Mar 2020
In reply to Dax H:

> You would like to think in a fair world that because you booked under the original cover that you would be covered but there is nothing fair about the parasitic weasels in the insurance industry. 

I often think insurance cover is to cover the insurer. So they can take your premium without having to pay out.

Dax H 21 Mar 2020
In reply to brianjcooper:

Insurance is there for one reason and one reason only, to make money for the underwriters. That is its sole purpose in life. Yes some people benefit like my new kitchen after a house fire that I would have struggled to pay for but collectively we pay more in to the pot than we take out and to help them maintain that ratio they include all kinds of wierd and wonderful clauses that even if we do notice them in the 16 pages of terms and conditions printed in the smallest font known to man we would still think "that's okay that will never happen" but it does happen, their statistics say it does so that's why they include it. 

1
In reply to chris_r:

Name and shame the company and never use them again. Otherwise they will keep doing it. (although I suspect every single insurance company will be the same so it will be hard to find a decent one.)

1
jimtitt 21 Mar 2020
In reply to Dax H:

> Insurance is there for one reason and one reason only, to make money for the underwriters. That is its sole purpose in life. Yes some people benefit like my new kitchen after a house fire that I would have struggled to pay for but collectively we pay more in to the pot than we take out and to help them maintain that ratio they include all kinds of wierd and wonderful clauses that even if we do notice them in the 16 pages of terms and conditions printed in the smallest font known to man we would still think "that's okay that will never happen" but it does happen, their statistics say it does so that's why they include it. 


Well it is the function of underwriters to calculate the risk and guarantee the financial costs.........

Clearly there is some benefit to the members of mutual insurance companies (half the UK insures with one) since they often use commercial underwriters, the COOP sold their underwriting side ten years ago.

kevin stephens 21 Mar 2020
In reply to Nempnett Thrubwell:

It’s just a standard consequence of annual policies. It’s even the case with the BMC. Take a step back and see the whole picture re state of the country and elsewhere for some perspective. 

BnB 21 Mar 2020
In reply to Nempnett Thrubwell:

These new terms have just been introduced by my insurer for any trips booked after 11th March, not pre-existing bookings. Do you think people should be indemnified from being completely reckless, ie booking a foreign holiday in the knowledge that virtually every flight on the planet is grounded indefinitely? As just said, get some perspective.

kirsten 21 Mar 2020
In reply to BnB:

Has anyone come across an airline or operator who isn’t offering date changes or refunds?  If everything is still closed/ grounded you should have enough options without needing insurance to kick in. 


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