Common reasons why your travel insurance claim might get rejected

For a lot of Indians, travel insurance is becoming an indispensable part of travelling as it not only acts as a safety net against unforeseen medical expenses but also safeguards you against other related travel emergencies that could spoil your trip. While one can't have a control on these mishaps, there is definitely precautions that you can take. But still, there are hundreds of things which can go wrong to ruin your vacation. As a matter of fact, every year we hear handful of stories detailing the experiences of individuals about their medical emergencies, damaged or lost baggage, misplaced passport or missed flights. However, these stories become a bigger nightmare if the travel insurance company reject your claim for some reason leaving you personally on the hook for massive bills.

However, insurance companies do not reject the claim for casual reasons. As a traveller, if you're well prepared, claiming on your travel insurance shouldn't be a problem. Read on for more information on some of the most common reasons for claim rejections that can be avoided for the next time you travel abroad.

Non-disclosure of pre-existing conditions

In spite of medical emergencies being the main driver of taking out travel insurance, it is still very common that more than half of the travellers don't reveal their pre-existing medical conditions and end up getting rejected while making a claim. Pre-existing medical conditions is usually defined as any illness, disease or injury that occurs prior to the travel plan's effective date for which you had symptoms and if that requires any type of medical treatment. So, if you have any pre-existing medical condition, or any hospitalisation happened in last 48 months, you must mention that to your insurer while purchasing a policy. Some insurers might cover these conditions for some additional costs or some may not. However, irrespective of the premiums, the insurer will provide you with disclosing your medical history when signing up for travel insurance is very important. This allows the insurer to appropriately assess the medical risk that the customer poses, along with any other risks, in order to provide cover at a fair price.

Opting for wrong coverage

While buying a travel insurance, for an individual the priority is usually the policy price and not what is included in the coverage. Travel insurance is often available in a combination of coverages and add-ons. In such cases, a traveller can always select the type of coverages they want. Though, this may affect the price, but it is important for a traveller to read all the polices ahead of time to know what all their policy covers so that they are not surprised at the time of claim rejection.

Indulging in activities not covered

Travelling to Wollongong for skydiving in Sydney might sound very exciting. However, for adventure travellers, it is very important to first crosscheck the facts with their insurance provider if they provide the coverage for the same or not. Travel policy usually have varying degrees of cover for adventure sports activities, so it is vital that you buy the cover that is most appropriate for what you intend to do on holiday. Most insurance products don't cover activities like bungee jumping, para-gliding while some insurers specifically cater to adventure travel as add-ons. However, they do this at relatively higher premium depending on the activity you wish to attempt. This cover is not applicable if you are going specifically for adventure activity only, for e.g. if you are going for a 10-day trek. Although the list of excluded activities differs from company to company. You must, therefore, make a point to inform your insurer the kind of activities you are planning to do during your trip.

Alcohol/drug abuse

Travel insurance policies invariably contain terms and conditions relating to alcohol consumption. If any kind of accident or personal loss happens whilst you are under the influence of alcohol or drugs, it is not covered in travel insurance policies. An insurer may decline a claim if a person's alcohol consumption has directly or indirectly resulted in the circumstances of the claim. Hence, it is very important to check the small print to confirm what is and what is not covered. Same applies to drugs abuse as well.

Not having the necessary proof

Insurance companies will ask for solid proofs before they process your claim. So, keep all the necessary documents in place to make a claim. So whenever any 'claimable' event happens such as if your passport gets stolen, file a report with local police & the nearest embassy and get a copy of that report or make sure that you avail the receipts of every medical services you receive so that you are always on the safe side. Failing to do this, the insurance company can decline your request for reimbursement.

The writer is chief business officer, general insurance, Policybazaar.com