Is anybody else fed up with travel insurers?

[lauda777]

My first post - altho a member for some time, but after 30 years in the airline industry (now in other profession), and just 2 travel claims, I was recently embroiled in the ridiculous situation of being trapped in Bangkok.

My insurer (I will not name here, for now) has had to be pushed very hard into accepting ANY form of a claim, and after much ear-bashing, have been advised i may make a claim for travel inconvenience which will pay a maximum of $200 total, with no excess...

I understand PDS, policy small print, exclusions, max payouts, excesses etc BUT it seems to me that 95% of people pay for insurance which does not meet their expectations when a claim arises and they end up with LESS than satisfactory solutions and/or service.

My questions to others are:

1. In 30 years, (personally, and through various clients) I am tired of hearing of claim refusals, poor payouts and generally outrageous settlement or refusal terms on claims - better than 90% of the people I have spoken to agree that this is generally the case. What I want to avoid is a firestorm of stories, but do you consider insurers to offer honest, up-front and fair-play policies?

2. Specifically, has anyone received a pro-active gesture from their insurer regarding a payour, even if just for accommodation costs whilst stranded in Thailand ? I would be glad to forward this info (anon.) to my insurer...

3. Is it not time that we were able to purchase insurance on an honest, up-front basis of choice. much like a Jetstar booking. Tick the product boxes you need - eg: (excuse this naive example) :

Airport disruption due to reason beyond your control YES / NO
Items lost at airport YES/NO
Hospital due to accident YES / NO
Flight cancellation due to airline ops YES / NO
Flight cancellation due to other action YES/NO
Excess Amount YES?NO

and then by picking what cover is / is not required the total can be quoted. This would allow travellers to choose, AND be responsible for, the cover they want. Rather than a blanket $100-300 being taken greedily on a policy, and then to find there is no cover, or the hassle of claim refusal, disputes etc.

To me, it really is time this industry cleaned up its act, the consumer pays and is left powerless. If it is a case of too much fraud, well the insurers can refuse or request more info for any policy for those who have had more than x claims in x years.

I kick the ball into your laps...

 

[Mr_Gimlet]

As someone who works at the receiving, corporate end of the insurance business I believe most people do not understand what insurance is for and what they are paying for. It is also a category of insurance rife with dubious claims and blatant fraud.

To be fair to consumers, as a category it hasn't really kept up with modern travel - when these policies were conceived, people were travelling on mailships, not Jetstar - but the idea that it covers rare, unmanageable events is beyond most travellers' expectations.

However, I think your new design proposal form is an excellent idea. That said, if I were an insurer, I wouldn't touch individual airlines. I think the recent Thai problems are clearly an insured event.

 

[Travel Guru]

I don't think it's wise to generalise with regard to claim issues, I think like every industry there are good and bad players offering good, average and bad products.

Certainly with regard to the product I sell, I haven't had any negative feedback regarding claims and I know they do cover quite a bit with respect to incidents, and they also cover quite a few things most insurers don't include.

I think the main mistake people make is one of two things:

A. Not spending enough time educating themselves on what their chosen insurer does or doesn't cover (and assuming it will cover events/incidents it simply doesnt)

B. Assuming that all insurers are pretty much alike both with regard to cover and after sales/claims.

I've spent enough time at the coal face of retail travel (previously many years with FC before being a business owner myself) to recognise that most people are their own worst enemies, expecting a 5 star product for a 3 star price, but it's just not realistic.

Sure it's not limited to the discount online insurers, there are some big players in the travel insurance game who charge hefty premiums but fail to deliver when it comes to claims (not that i'll mention one of their names which comes to mind) but as I said, I've got no problem with the company I sell and certainly don't see any reason to change it.

While your suggestion of choice when it comes to what categories we're covered for is an interesting one, the problem I see with it is that it would open up a legal minefield for agents/resellers etc who would have to deal with those customers who were happy to save $10 to drop off rental car excess cover until they find they need it and use the agent as the point of blame for why they weren't offered/sold it in the first place.

TG

 

[JohnK]

Are insurance companies honest? It depends on how you look at it. I don't know all the intricate details but I work for an insurance company and I am constantly amazed at what I learn about the insurance business.

From a customer perspective I have only ever dealt with Travel Insurance Direct and to be honest I am extremely happy with the service I received. My one and only claim was processed efficiently and with the minimum of hassle for me. Sure it did not involve travel delays or accommodation costs but I did get my money back for clothes I bought, mobile phone charger, new carry-on bag, cost of luggage damaged when my luggage went missing for a week last year.

Unless something drastic happens they will continue to get my business....

 

[clifford]

I understand PDS, policy small print, exclusions, max payouts, excesses etc BUT it seems to me that 95% of people pay for insurance which does not meet their expectations when a claim arises and they end up with LESS than satisfactory solutions and/or service.

3. Is it not time that we were able to purchase insurance on an honest, up-front basis of choice. much like a Jetstar booking. Tick the product boxes you need - eg: (excuse this naive example) :

Well, all I can say is that I have made two travel insurance (part of my Visa Gold card) claims over the years and both were paid in full (according to the T&C's), but certainly they were not particularly proactive nor did they rush the payments. But at the end of the day I was treated fairly (not bad for "free" insurance).

I really can't comment on why your insurer was so reticent, but in my opinion, there is nothing honest or up-front about a Jetstar booking (having just been given the runaround by Jetstar following a schedule change).

 

[vitaminp]

2. Specifically, has anyone received a pro-active gesture from their insurer regarding a payour, even if just for accommodation costs whilst stranded in Thailand ? I would be glad to forward this info (anon.) to my insurer...

I know that either QBE or HBF issued a media release at the time of the BKK airport mess saying they would be proactive in payments for delay and accommodation. Not sure how it has all panned out.

 

[oz_mark]

I know that either QBE or HBF issued a media release at the time of the BKK airport mess saying they would be proactive in payments for delay and accommodation. Not sure how it has all panned out.

Medibank did as well Medibank Private - choose medibank private for health cover and travel insurance

Tuesday, 2 December 2008
Medibank Private has announced it will cover any travel insurance members caught up in the rebellion in Thailand for the costs of their forced extended stay.

With many travel insurance policies excluding claims for expenses incurred in such circumstances, Medibank Private Chief Operating Officer, Bruce Levy, has announced the fund will cover its members for accommodation, alternative transport and other reasonable costs associated with their delay.

“The most important thing in these circumstances is to get the victims of the situation safely home as soon as possible, and now is not the time to be quibbling over fine print,” Mr Levy said.

“Medibank Private will cover our travel insurance members for costs of additional accommodation, alternative travel arrangements and medical costs incurred due to the ongoing civil disorder in Thailand. These items will be covered to the extent they normally would be under their policy.

 

[Hvr]

I know that either QBE or HBF issued a media release at the time of the BKK airport mess saying they would be proactive in payments for delay and accommodation. Not sure how it has all panned out.

I have a QBE policy and spoke to them whilst I was in BKK and they assured me they would pay my extra accommodation and food up to the agreed limits. Now I am in the process of preparing my claim.

Will let you know how it goes.

 

[lauda777]

I don't think it's wise to generalise with regard to claim issues, I think like every industry there are good and bad players offering good, average and bad products.

...
I think the main mistake people make is one of two things:

A. Not spending enough time educating themselves on what their chosen insurer does or doesn't cover (and assuming it will cover events/incidents it simply doesnt)

B. Assuming that all insurers are pretty much alike both with regard to cover and after sales/claims.

I've spent enough time at the coal face of retail travel (previously many years with FC before being a business owner myself) to recognise that most people are their own worst enemies, expecting a 5 star product for a 3 star price, but it's just not realistic.

...

While your suggestion of choice when it comes to what categories we're covered for is an interesting one, the problem I see with it is that it would open up a legal minefield for agents/resellers etc who would have to deal with those customers who were happy to save $10 to drop off rental car excess cover until they find they need it and use the agent as the point of blame for why they weren't offered/sold it in the first place.

TG

Thanks for your response-as a travel industry professional it's valued.

However, when you respond about your own insurance supplier with whom you are happy. My issue is exactly that - if ALL agents, airlines, airports HAVE to follow guidelines / rules to recompense or protect travellers... why should insurers be mavericks - some MAY be good but IME having used 3-4 different companies, one of which is saturates the travel industry product offerings, ALL have failed to meet the average customers expectations....especially this company with a large agency base.

If you insure a car for $30k, pay your premium of around 2-3% of that, your expectations are better than 80% met, and usually claims are rejected only on when on an "at fault" or "negligence" basis. You dont seem to have the same "Yes, but...." response from your insurer that seems prevalent with Travel insurance.

If a bunch of nuts aged 18-95 can drive around in tin cans on our wonderful road system for a year in all weather and road surfaces and still be protected also for glass, break in and theft of a $20k upward item for about $700-1.5k a YEAR, why does everybody run at a $400 travel insurance claim that is made on a totally unexpected event on a policy that costs about 25% of the premium. I don't get it !

With reference to A. above (Not spending enough time educating themselves on what their insurance supplier does or doesnt cover)

This again, is my point - why doesnt the policy start by stating in bold up front terms that WE DO NOT COVER YOU FOR: perhaps an attached page/s or 2 clearly stating good examples of eventualities that are NOT covered for under the policy.

This would be fairer than leaving the harassed, overworked blighter paying for the policy to see whats included (and maybe, per my original suggeston) it would be better to offer policy cover line-by-line. YOU choose, YOU pay and if you dont tick that box YOU are not covered - YOUR choice.

Specifically, this Bangkok issue has been a joke AFAIC in terms of policy cover. Nobody was affected by Terror , we were all "trapped"... just as if an airline had its fleet grounded.

Specifically, my last claim involved a $3000 cruise fare and a ticket to the US. Whilst en-route (stopover in Asia) on my way to LA, my mother who lives overseas had an unexpected heart attack. (No "pre-existing" condition. TICK ! The policy covers "close relatives" TICK ! But... waaaiiitt a moment, she is not an Australian Resident ... FAIL ! What the hell difference does that make if I have to cancel my trip - I am the one paying to fly to a third continent to see her- I just thought I was covered for cancellation of that trip due to "medical emergency of a member of my immediate family". Result - pay insurer, lose trip and ticket to US, pay for new long haul fare from asia to mother's home (one way) and then back to australia (one way) and am I covered - nope. A bit unreasonable ?

Specifically, there are many more like this I have come across through clients and it just seem mightily unfair

In this day and age when the EU carriers fork out $ millions a year to compensate passengers directly for delays and cancellations; when your home contents policy can cover you for baggage overseas and your credit card offers basic travel cover, these are all lessening the claim cost to travel insurers, the claim is paid LESS all the contributing payments from these other companies.

So, to me, (and I am happy to stand corrected, but look at the logic) the fact of the matter is:

As insurers of travel...

• If you can charge a high premium,
• For a short time (trip duration) and...
• Escape cover for most unusual events with good 'exclusions' crafted in terminology that specifically dupes, and...
• Hide behind definitions (terrorism apparently includes a sit-in with no violence, a bunch of people having a fight in a restaurant or whatever...), and...
• When a claim comes to be paid, depreciate/use "fair market" value and other terms for cheaper settlement on loss/theft and...
• The airlines and travel suplliers have to compensate for their mistakes, and...
• You can delay/mystify/ runaround on the eventual claim...

You have to be a winner, whilst the dumb consumer, (so very 90's /00's isnt it?), who is the PAYING client receives either refusal or shoddy service and basic expectations are not met.

There has to be a better way...!:!:

 

[lauda777]

I know that either QBE or HBF issued a media release at the time of the BKK airport mess saying they would be proactive in payments for delay and accommodation. Not sure how it has all panned out.

Firstly, to members VitaminP, Oz_mark and hvr ; Thank you all for your info on those reasonable insurers who have been pro-active and accepted claims in the BKK matter.

These are companies that deserve business. Fair play and realistic attention to the customers predicament.

I will mention these to my insurer.... and receive... ?

I heard of some companies setting up Thai call centers/help desks for aussies trapped, Sadly, my insurer, a LARGE multinational company did nothing and (honestly) even failed to respond to 3 calls and 4 emails during the week of the crisis. Other clients of this insurer from Germany and Finland had similar issues...

Those companies QBE, Medibank, Mondial deserve recognition for they are acting as insurers should, rather than drawing a line in the sand.

Hopefully, through this forum of travel-minded people, we can sort the wheat from the chaff, maybe even push for changes...everything else gets legislated to death by the Govt...!!!

Thank you all again...

 

[serfty]

...

• If you can charge a high premium,...

...
There has to be a better way...!:!:

There is ... it's referred to in this forum on this web site.

The coughulative knowledge here is invaluable in getting the best value for one's insurance; whether it's via a CC perk or purchased policy.

e.g. TID sell an annual policy for $340 that's very similar in what it covers to what one can purchase from Qantas for $545.

 

[atalooseend]

It's too expensive here! I used to live in the UK and I had cover for a year with unlimited travel for about $75.

 

[JohnK]

Yes it is a little more expensive compared to US, UK and Europe but we are relatively small country. In my opinion $340 for an annual policy is a small and insignificant amount to pay for peace of mind especially when the value of my overseas holidays are worth ~$15,000pa. There are people who spend $120 on brunch and think this is good value. YMMV!!!!