Ash Alert: Travel Insurance - Know your rights

Don't waste time, get you claims in quickly

By Sharron Livingston on 26 April 2010 in Travel Articles

Many holidaymakers have had their travel plans disrupted because of the Icelandic volcano. Getting home may have been an adventure or an ordeal, but now that you are home safe and sound, make sure your sort out your travel insurance claim.

Natural disasters - Can I really claim for an Act of God?

Though you may not have specified this at the time of purchase, it is still worth asking the question to find out where you stand on pay-outs. Many travel insurers have advertised recently in the national press that they will pay out as an act of good will.

How soon should I claim?

Get in touch as soon as you can as different providers have varying time limits.

What do I need to show?

Collate all your receipts and include a detailed itemised claim. Travel insurance companies will look more kindly on 'reasonable' out-of-pocket expenses, so its worth stating why your claim is indeed reasonable. This could inlude buying extra medicine or extra expenditure for special diets.

What if the insurance provider disputes my claim?

Insurance providers may well dispute your claim in part or whole, but nevertheless include your claim even if you are unsure about cover. You'll soon find out.

If you are unhappy with the insurer's response to you claim you can make a formal complaint. Detailed information about the case and why it has been disputed is vital. Ask about the clause in the policy that allows them to dispute or reject your claim. Get them to clearly state their grounds for refusal.

To make a formal complaint, write a letter to your provider either by post or email and mark it 'FORMAL COMPLAINT'. Check your provider's website for any complaint procedures they may like you to follow. Exhaust all avenues of their internal procedure and only then, if you still are unhappy, should you complain to the obusdman with details of the claim and include all relevant document.

How much time should I allow?

The magic number seems to be around 8 weeks. If the matter has not been resolved within this time get in touch with the Financial Ombudsman Service Tel: 0300 123 9123

What if I am not happy with the FOS decision?

There is a final step you can take which involves court action, but it can be costly, so consider this carefully.

In England and Wales, if your claim exceeds £5000, you won't be able to have the case heard in a Small Claims Court. If you lose you  may be ordered to pay court costs for the provider too.

Smaller amounts can be heard in the Small Claims Court and each side will be expected to pay their own costs. The claim limit though is £2000 in Northern Ireland and £3000 in Scotland where the case is heard in the Sheriff's Court.

If you amount is higher than £5000 then consider enlisting the services of a solicitor.

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