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Picture this scenario:

You are holiday with the family and whilst abroad one of your bags is lost by your air carrier on your return flight.  After a period of time the airline states they cannot locate your bag.  You then decide to place a claim through the travel insurance policy you had taken out.  You value the bag and its contents at around £300 as you had your clothes, gifts for family, etc in the bag.  You have a £50 excess on the insurance policy and since the airline has stated they lost the bag and you have documentation to prove this, you figure it is a very straightforward claim.

Think again my friend.

In reviewing the claim the insurance company may ask you details of your bank, details of how you paid for the holiday (by credit card, cash, etc), who your home insurance is with, (if you have such a policy), and also details of the flight, your ticket stub and any paperwork from the airlines.

Why does the insurance company want all this information?

The insurance company is looking to spread the cost of the loss or what they may have to payout in the claim, with any and all other third parties that may have some form of coverage or reimbursement policy also covering your loss.

Why should the travel insurance company pay the full claim if they can collect some of it from a third party such as your bank, your other insurance policies, and perhaps your credit card company as they may have some coverage in place as well.

Should you care, I mean you will get your claim paid.

Well yes, there can be a few concerns here.

You paid for the travel insurance through the one company, you don’t want your other insurers or banks being affected by your claim.  Many insurers say if they do pay through a third party claim it will not affect your no-claim bonus, but it may be used by some insurers in the future as it could show you made a claim through them, when it wasn’t you, but the travel insurance company.

No one can say with a 100% guarantee that claiming on the travel policy you paid the premium for and was in place for such an event, will not impact other insurance policies if the other insurers are include din the third party claim.

Doesn’t seem to fair does it?

The opposite side of this is that in some instances you can be offered lower travel insurance premiums if you do have other insurance coverage that may duplicate some of the travel insurance policy’s coverages.

One more thing we need to look at and review closely prior to taking out an insurance policy, duplicate coverages.

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