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'Most' travel cover claims successful

28 January 2016 08:11

Cancelled flights can be covered by travel insurance

Cancelled flights can be covered by travel insurance

Travel insurance policies paid out to the vast majority of claimants in 2013 and 2014, newly published figures show.

And the Association of British Insurers (ABI) says for those successfully making a claim on their travel insurance, the typical payout was £884.

Its figures show that 87% of those who claimed on a travel cover policy received a payout over the two-year period.

The ABI has carried out the analysis to help customers understand what their policies cover them for, in the hope that this will result in an even higher number of successful claims.

Among travellers who were unsuccessful, failing to declare a pre-existing medical condition that resulted in the claim being made was one of the commonest mistakes made.

Holidaymakers could avoid that happening to them by taking out a specialised pre-existing medical conditions travel insurance policy.

Other common reasons for claims being declined include people being unable to provide evidence for the loss of items, cancellations not falling within the scope of their cover, and claims not being above the policy's excess.

The research forms part of the association's bid to make the industry more transparent and increase the public's trust in insurance companies. The move was announced by its chairman, Paul Evans, at the ABI's conference last autumn.

The ABI's director general, Huw Evans, says firms want their customers to be confident that their claims will result in payouts in their hour of need.

That, he adds, can only be achieved if the industry tells people how many claims are successful and why those that are not fail.

Mr Evans says the association will be using its analysis of the figures to run awareness campaigns aimed at further improving payout rates.

The ABI figures also show that in the motor insurance sector, all but 1% of claims were successful during 2013 and 2014, with the payouts averaging more than £2,100.