5 Common Reasons Why Travel Insurance Claims Are Denied (Plus Tips On What You Can Do To Avoid This)

In this article, we list some of the common reasons why travel insurance claims are denied, and what you can do to ensure you obtain proper reimbursement.

With travel horror stories surfacing almost everywhere—from super storms, medical emergencies to week-long trip delays and cancellations—it's no surprise that many travellers these days are getting themselves travel insurance.

Travel insurance covers you from any risks or accidents that you may encounter during your trip. It's a legal contract where an individual agrees to pay a fee to an insurance company in exchange of protection from any risks, as long as it is covered in the insurance plan.

Unfortunately, some people don't get to obtain reimbursement for their travel insurance claims due to various reasons. Here are only some of them.

1. Pre-existing medical condition

A pre-existing condition is defined as any illness, disease or injury that occurs before the effective date of travel for which a person had already sought diagnosis or treatment. Usually, pre-existing conditions are not included from various travel insurance promotions. That's why before purchasing one, it's important to carefully consider a travel insurance policy that covers whatever pre-existing condition you may have.

2. Lack of documentation

For any travel insurance claim, whether it's the loss or damage of personal belongings, trip delays or medical accidents, preparing proper documentation is something that you shouldn't neglect. Travel insurance companies don't simply take your word for what happened; you need to present proof for your claim.

For example, when your flight is cancelled, request a written proof from your airline representatives. Or if your passport gets stolen during your trip, make sure you file a report to the police or embassy and have your own copy of the report. You will then need to submit this to your insurance company.

3. Late purchase of policy

Bear in mind that travel insurance can only be used to cover travel risks or accidents that haven't happened yet. Hence, it's necessary that your purchase a plan before your trip's effective date. Purchasing a travel policy early also has a few advantages. For one, you'll be able to 'cancel for any reason'. You'll also have the longest time or coverage for any unexpected cancellations.

4. Failure to insure all trip expenses

One of the reasons that a cancellation claim is denied is due to a person's failure of insuring all of his or her trip expenses. This happens because many travellers usually purchase travel insurance even before their travel plans are finalized. Thus, to avoid this, it's best to go for travel insurance policies that come with a review period since this allows a traveller to review their plans first, finalize their travel details and expenses, and make the needed changes to their policy to ensure they are covered.

5. Invalid reason

Trip cancellations aren't always covered, especially if you don't have a good reason to back it up. Most travel insurance policies list the covered reasons for cancellation for their plans since they also need limit their liability. And usually, simply changing your mind isn't one of the valid reasons. Thus, it's important that you are aware of the covered or valid reasons included in your plan.

Travel insurance will only serve their purpose as long as the traveller also does their part. So, be sure that you are aware of all these risks to prevent being denied of your insurance claims.