Holidaymakers Left Out Of Pocket by
Holiday Insurers Who Refuse To
Pay Out
Bad credit holidaymakers are having their holiday insurance cover claims turned down by leading insurers because of tricky small print additions.
Travel industry experts are predicting an increase in premiums and a narrowing of conditions to ensure that making a successful claim becomes even tougher.
“Many have taken out holiday loans to cover their losses in the belief they will receive compensation, only to later discover the insurance company refuses to pay out on their claim.”
The Financial Ombudsman Service (FOS) had received almost a third more complaints from unhappy consumers about travel insurance last year.
When asked to investigate whether the recent grievances have been handled properly, the FOS upheld 25% more cases than before.
“There has been an alarming rise in the number of instances of insurance claims occurring after a trip abroad,” stated Mr James of Bad Credit Loans 4 You.
“Travellers are unlucky to encounter different types of misfortune whilst on holiday and some who haven’t been properly covered are left with bad credit debt as a result.”
Cases where insurers are refusing to pay out include:
• Holidaymakers who have fallen ill before their trip and are unable to obtain a payout for their missed vacation.
• Travellers who are forced to cancel a trip when a relative falls sick, but are denied a payout because the person is deemed not to be a close relative.
• People who have had possessions or cash stolen but cannot claim against their insurer because the police crime number is invalid.
• Luggage has gone missing, but items purchased with holiday finance to cover them until it turns up cannot be reclaimed.
Bob Atkinson, travel expert for comparison site Moneysupermarket.com, said; “Insurers have had an expensive year.”
“There have been unexpected incidents such as strikes and bad weather that have cost them a lot of money.”
Mr Atkinson went on to add; “We sense a real hardening in their attitude towards claims.”
“They appear to be sticking to the very strict letter of what is written in a policy.”
Almost 4,000 British holidaymakers are hospitalised abroad every year and medical treatment can be extremely expensive, with the cost of cover to insurers currently at £5.3 million a week, an increase of 270% on five years ago.
Nearly 6,000 UK travellers die abroad, whilst over 27,000 either lose or have their passport stolen.
With so many costly incidents occurring overseas, more and more people are incurring bad credit debt on holiday loans when insurers close the door on their claim.
Only 44% of travellers won insurance disputes they took up with the Ombudsman during 2009/2010, but over the last three months, 55% of consumers have had their case approved.
A spokesman for the Ombudsman said; “We always start by looking at the policy documents.”
“Some insurers have very tightly worded policies, their definitions are very precise and these are the cases where a decision can be quite clear cut.”
“Where wording is a lot looser, then that is when there can be interpretation.”
Insurer’s judgements are often viewed as harsh where there is room for interpretation, especially when the wrong judgement could cause bad credit debt problems for the consumer.
Those with knowledge of the industry believe that consumers could now feel a backlash from the holiday insurance companies.
“With more payouts being awarded, insurers are likely to use this to claim they are taking greater risks and justify future price increases,” said Mr James of Bad Credit Loans 4 You.
“Terms and conditions could also be tightened and made more restrictive in order to reduce payouts.”
Bad Credit Loans 4 You helps out people who fear they have been blacklisted because of past poor credit history which could include CCJ’s and defaults, arrears, late credit card payments or repossession.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.
Bad Credit Loans 4 You is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
For help, phone 0800 011 4503 or visit
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Loans 4 You of London Ltd
Innovation Centre
Monks Brook
PO30 5WB
United Kingdom
Tel: 0800 011 4503
Bad Credit Loans 4 You was formed in order to ensure people with bad credit had access to specialist help in securing the bad credit loans they need.
From its UK head office in Monks Brook, Loans 4 You operates across Britain, sourcing bad credit loans for people with bad credit.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.
Bad Credit Loans 4 You is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
