How travel insurers use sneaky get-outs

Policies can be worthless if you drink, use air miles or hurt yourself cycling

HOLIDAYMAKERS are being sold travel insurance that is invalidated by common mishaps, it can be revealed.

A Money Mail investigation uncovered an array of hidden catches in the small print of some of the most prominently advertised policies on price comparison websites.

In the worst cases, travellers will not be covered if they have an accident during popular activities such as cycling, horse riding and snorkelling.

Some insurers such as Aviva won’t pay if a trip that was bought with air miles or loyalty points is cancelled.

Some are even forcing customers to pay so much to make a claim that it wipes out any payout received. And in other cases they throw out claims if travellers have drunk alcohol. Experts warn that millions going on holiday this year will have no idea about these exclusions and face huge costs.

Holidaymakers buy around 13.2million travel insurance policies each year at a cost of around £730million.

Experts say many will be unaware that policies will not protect them or that they have to shop around very carefully to get the best deal.

Martyn James, of complaints website Resolver, said: ‘Travel insurance companies are renowned for relying on ambiguous contract terms to get out of paying claims. Holidaymakers should be particularly wary when using price comparison websites as the cheapest deals often offer the worst cover.’

Insurers typically list the activities they will and will not cover in the policy terms and conditions.

Some sports may be excluded outright, while others may be covered if holidaymakers pay extra. With the Post Office, for example, quad biking is excluded while shark diving is included.

In one recent case, a 52-yearold grandmother injured herself falling off a quad bike in Greece. She was left with thousands of pounds in medical bills after her insurer refused to pay out because it excludes quad biking in its small print.

Research by comparison website Defaqto shows that of 922 UK single trip travel insurance policies, 21 refused to cover snorkelling and seven will only cover it as an add on. Meanwhile, 18 policies will not cover cycling and 21 will only provide cover if customers pay extra.

A further 64 policies will not cover horse-riding accidents.

A spokesman for the Post Office said its policies were clear and in line with many other providers.

Controversial Government reforms to compensation payouts have helped push up annual motor insurance bills by £90 over the last year.

The average annual premium rose by 15.7 per cent to £666 after the Ogden rate was changed in March.