Policy Wording Made Simple

We have shown below three basic principles of Travel Insurance, how the policy works, and the method used for paying claims:-

We will pay - This describes what the underwriters will pay for following certain circumstances, for example, the emergency medical expenses following a ski injury. This is also known as the 'provisions' of the policy.

We will not pay - This describes what underwriters will not pay for, for example, Hang Gliding. This is also known as 'exclusions'.

Conditions - This is what your customer must do following an event in order for a claim to be considered. For example, your customer must obtain a Property Irregularity Report from an airline in the event of delayed baggage.

There are two ways of paying a claim:-

Indemnity - This puts the customer back into the financial position he was in before the loss occurred (less any excess).

Benefit - Your customer may claim a benefit under some sections of a Travel Insurance policy. For example if you go to hospital and stay for one or more nights under most policies there is a section which provides a daily payment for having been in hospital. There are other sections which are paid as a benefit, for example Personal Accident.