22 September 2011
Daily Telegraph Consumer correspondent Gill Charlton answers readers travel questions in her weekly column.
On Saturday 17th September 2011 she was asked a question on a medical and curtailment insurance claim.
The reader’s query was over a claim made after a fractured tibia on the first day of her holiday. This kept her in hospital until what would have been the last day of her holiday when she was declared fit enough to fly home.
The insurance company paid for the medical claim and the reader’s husband’s stay in a hotel near the hospital in Nairobi but they refused to settle the curtailment claim of over four thousand pounds for the five night stay at their holiday destination, a safari holiday.
The insurance company argues that the trip was not shortened as the insured returned home on the flight on which they were originally booked.
The reader’s question to Gill Charlton was whether the stay in the hospital constituted the holiday that she had purchased and for which she had purchased insurance cover.
Gill Charlton’s response was that the reader had chosen an insurer that provided limited cover under their curtailment cover but at the same time she thought their wording was somewhat obtuse.
It would appear that the curtailment section of the reader’s policy only applied when the medical assistance company agreed to "return the claimant home before the booked return date". In this case there was no mention of a hospital stay being a reason for claiming curtailment.
She went on to say that a good travel policy will define curtailment along these lines: "Cutting short the trip, either by return to your home area, or to attend a hospital outside your home area as an in-patient".
Many insurers offer only partial cover, even when couples have a joint policy. Usually, the hospitalised person is covered under the curtailment section but the partner's share of the holiday cost is excluded. These insurers will pay for accommodation near the hospital instead.
She reiterated that the reader’s case shows how important it is to read the full policy wording before buying travel insurance. She recommended if there is anything that is not clear it is always best to phone the insurer and make a note of the person with whom you speak.
Michael Pettifer, MD MPI Broker’s comments...
The situation that Gill's reader experienced in her recent holiday highlights something that we at MPI Brokers have been talking about for many years. If you want a decent policy you have to pay for it. In this case it would be interesting to know how much Mrs Skerrett paid for her policy.
At MPI Brokers we are very aware of this type of issue and we consider, once admitted to hospital (and you stay there) the holiday is finished.
With us you would have a claim for the prorate loss of the holiday.
Gill's reader also mentions, the little understood situation, where many insurers deduct the cost of the flight from the curtailment claim. The rationale behind this is that the flight has been used, or at least one leg of the flight has been used, and the insurers have paid for the return.
This approach suggests that the traveller is flying solely for the flight. We, at MPI consider the purpose of a flight is to reach ones holiday destination and it is, therefore, part of the overall cost of the holiday. When we settle curtailment claims for clients we would include the unrecoverable flight cost as part of the claim.
In addition at MPI, where under the injured person’s policy we cover the uninjured relative for their stay in accommodation close to the hospital and we allow the uninjured relative to also claim for curtailment on their own policy.
