Travel insurance is great. After all, it does let you have some peace of mind while travelling, especially overseas. If you lose your baggage, your travel insurance pays you for the important stuff you need to keep your trip going; if you fall sick while travelling, it takes care of that huge hospital bill; if an earthquake destroys the destination you are travelling to and your flight is cancelled, the policy helps you get your money back.
However, it’s not always as straightforward as it may seem. There are certain situations when your travel insurance company can refuse your claim. Take a look at some such situations:
Participating in Extreme Sports
There are people who would go to an exotic destination just to lie down and look at the sky. However, there are some other people who think perfect holiday means scuba diving, parasailing, mountaineering, hiking, trekking, and basically anything that gives them an adrenaline rush. If you are also one of them, you need to be a little careful while choosing your travel insurance policy.
Most travel insurance policies do not offer coverage for extreme sports. For instance, some policies explicitly state that if you hike or trek beyond a certain height, you will not be covered.
Travelling Against Government’s Advice
If you are planning an international trip, make sure you are aware of the situations at your chosen destination. The government keeps issuing travel warnings or travel advisory to inform people about the level of risk involved in travelling to certain places. These risks could be related to weather conditions, disease outbreak, riots, strikes, civil unrest, natural disaster, and so on.
If you choose to travel against such government warnings, your insurer may refuse your claim. Next time, when you travel to a foreign destination, make sure to check such travel advisories from the government.
Not disclosing Your Pre-Existing Medical Conditions
It’s true that travel insurance protects you from unexpected medical emergencies abroad. However, if your insurer doesn’t know about any pre-existing medical conditions you may have while buying the policy, it could hurt your claim for medical expenses. Make sure you disclose everything about your health while buying travel insurance coverage.
Accident While You’re Under the Influence of Alcohol or Drugs
Drink responsibly whenever you are travelling. If your insurer finds out that you were under the influence of alcohol when the accident happened, it could hurt your claim unless you can prove that alcohol had nothing to do with it.
War or Terrorist Activities
An act of war or terrorism is the last thing you expect while travelling. However, if you ever happen to get stuck somewhere due to war or a terror attack, be careful as most travel insurance policies don’t offer coverage for such risks. Some policies also clearly state that the claim would be denied if you happen to meet with an accident in certain countries that are highly exposed to war and terror attacks.
Failure to Keep Your Things Safe
Losing baggage, passport, and other important things are some of the worst nightmares for any traveller. While travel insurance protects you from such risks, it’s up to you to prove that you took every possible step to keep your things safe. If the insurer finds out that you were negligent, you might lose your claim.
A trip or a vacation can make you want to leave all your troubles behind and discover who you really are or can be. However, being responsible no matter where you go shouldn’t be one of things you leave behind. Simply having travel insurance doesn’t mean responsibility, because your insurer has the right to reject your claim if you have not conformed to all the terms and conditions stated in your policy. So, go out there, have a ball, but don’t forget to be careful!
Maria
Financial Adviser