Circumstances When your Travel Insurance Won’t Pay

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Published on May 24th, 2015 | by Joan Makai

Travel insurance is an excellent product for travelers because it keeps them stress-free from worries about their baggage, health, and money. There is every possibility of the baggage not arriving at the destination, and health problems surprising travelers. At times, travelers may meet with accidents, and at other occasions, their funds may be stolen. Travel insurances protect the travelers from such problems. But in order to be eligible for reimbursement or payouts from travel insurance companies, the traveler with such insurance policy should also comply with relevant stipulations otherwise, the travel insurance company would be within its rights not to pay.

Here is a list of five circumstances when your travel insurance company would not pay

  1. You lied about something that was asked of you at the time of purchasing the travel insurance policy

Since travel insurance is also partly health insurance, it is necessary to disclose all related health problems, and personal habits such as smoking. Based on the disclosures, the risk is assessed by the companies, and the premium is fixed. Non-disclosure is obviously deliberate attempt to lower the premium and therefore cheating. Effectively, the contract becomes voidable ab initio, and travel insurance company would be within its rights to refuse payment.

  1. You are careless with your baggage, behavior and habits

Merely having a travel insurance does not absolve the traveler from taking due precautions. Travel insurance covers stolen baggage if traveler can prove that he or she took sufficient steps as generally expected, but still the baggage was stolen. For example, leaving the baggage unattended or with strangers to go for shopping is a risky proposition. Similarly, drinking excessively in foreign places, and meeting with any accident or getting sick because of it will not be covered.

  1. You choose to go to locations that are dangerous or opt to do something dangerous without disclosing

For example, you arrive in a town, and there are protests against something. You are aware that traveling through this protesting crowd can lead to damage to your insured properties. If you still continue to maintain your agenda or deliberately go there out of curiosity, then chances are that travel insurance company will refuse to pay the claims. If your property insured under travel insurance is damaged, stolen, or ruined. Similarly choosing to go for scuba diving, and meeting with any mishap there, will not entitle to any claim under travel insurance. If there is no disclosure of intention to go for such activity, and lack of adequate experience in such activity.

  1. You delay your claim

There are prescribed time limits mentioned in travel insurance document. They need to be adhered to very strictly, failing which, the travel insurance company will not be bound by the insurance contract.

  1. You do not follow the procedure mentioned in the travel insurance document for claims

Travel insurance companies specify the process of beginning the claim stepwise. Usually, a complaint is to be lodged with the local police within 24 hours, and simultaneously the insurance company is to be informed about the problem being faced by the traveler. If the procedure as specified and dictated is not followed, then travel insurance company may choose not to honor its commitments.


Just like a person who buys life insurance does not become careless with life, a traveler too has to be careful with his or her possessions and health while traveling. It would also be in the interests of travelers to read the claim procedures several times over to ensure that claims can be made as stipulated instead of being stranded with no help forthcoming.

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Joan Makai

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