There are a lot of good insurance companies, but there are also some that try anything to get out of having to pay for claims. At least, that is what some Brits are experiencing while they are overseas on holiday. Apparently, insurers are using small print to avoid paying for accidents that holidaymakers have.
According to reports, the claims that insurers are turning down are due to terms in the small print that state that they will not cover claims from alcoholics or people who abuse alcohol. The problem is that they are rejecting claims even if people had just one or two drinks, claiming that they are abusing alcohol.
The Financial Ombudsman Service, which has won more than 50 percent of the cases that it has brought against travel insurers for reasons just like this, says that these companies are not treating customers fairly. In fact, this is a problem that has been on the rise, jumping nearly 42 percent since the number of such cases was first recorded in 2011.
The group says that, in some of its cases, it finds that the terms that insurance companies use for describing alcohol consumption are not very clear. Companies often use this as an unfair way to avoid paying claims that they would have otherwise had to make.
One such case that the Ombudsman dealt with recently is simply being called the story of Mr. J., who fell down the stairs at a bar in Sydney and needed to go to the hospital. Now his insurance company is refusing to pay his bills. Ombudsman said that Mr. J broke his leg in the fall and suffered some very severe head trauma. He had to be taken to the hospital right away because of a blood clot that was believed to be life-threatening.
His insurer says that it’s not going to cover the bills. This is because it believes there is evidence that Mr. J was drinking excessive amounts of alcohol and fell down the stairs because he was drunk. This was a case that Mr. J ended up winning. He not only got the insurance company to pay his bills, but the insurer had to pay interest.
The stories of insurance companies not paying is what scares some Brits from travelling overseas. They are told that they have to have insurance in order to be protected when they travel. However, in some cases, the insurance companies do whatever they can to get out of paying. If this is the case, what is the point of having insurance?