1. Accepting Travel Insurance
I had a long, detailed and very interesting conversation recently about this with someone who knows their way round the travel insurance industry and the issues mentioned here which have been a concern for many years.
The question of whether or not an insurance provider should meet a claim for a change of circumstances which affects a man’s prostate cancer diagnosis or treatment etc and which occurs after the travel insurance was arranged and accepted before the holiday starts is important and needs to be understood. I have been told that this is a question which divides the travel insurance industry and has done so for a long time.
Some insurance providers accept a change of circumstances which occurs between the date on which a policy was agreed and before the holiday starts without increasing the premium or cancelling the policy and will pay out on a subsequent claim. Other insurance providers take the view that after the policy has been set up the insured risks are covered only from the first day of the holiday. This means that any change of medical circumstances before the start of the holiday may affect the policy. Best advice is to clarify exactly what is covered and from what date before you accept the policy offered by an insurer. In other words read the Terms and Conditions for the insurance if they are available. If the T and C’s are not on the providers website ask them where you can see them or to send you a copy.
Have a look at the “ombudsman news”, Issue 36, section 2 when firms vary the terms of an insurance policy after the customer has bought it” in Link 1below.
Link 1: http://www.financial-ombudsman.org.uk/publications/ombudsman-news/36/36.pdf
The Ombudsman does not consider it fair and reasonable to tell the individual to inform the insurance provider of any health change between the date on which the policy was bought and the date of travel. If the insurance provider requires such a change to be reported the provider may be seen to be changing its mind on the policy cover it will provide. It looks from this that when a holiday is cancelled and compensation is paid that situation is different to a health change which was not expected.
You will see from the second and third paragraph on page 9 of Link 1 that it may be acceptable in principle for an insurer to tell the customer to notify them about a medical change between the date the policy was accepted and the start date of the holiday. This could result in an increased premium or the provider may cancel the policy. In these circumstances it may be possible for you to cancel the insurance and try for a better deal with another insurance provider. However, I think this situation should be made clear to the customer when discussing the policy and especially be in the Terms and Conditions of the policy. I understand that insurance providers have had differing views about this for many years and such differences continue.
Best advice when you are arranging travel insurance is to clarify whether or not a change in your circumstances before the start date of your holiday affects your policy before you agree to the Terms and Condition in the policy. For example, if the Terms and Conditions for the policy do not warn against changes, as explained in the text in italics in the second paragraph on page 8 of “ombudsman News” at Link 1, it would be worthwhile to clarify this point with the insurance provider. If you then think that the information from the insurance provider is out of step with the view of the Financial Ombudsman you can make it clear to the provider that you think their decision on your policy application is unfair and that you are considering making a complaint to the Financial Ombudsman. This is an option but you may think it would be easier to walk away and contact another insurance provider about your travel insurance.
The implications from the information in section 2 of the “ombudsman news” set out in this short note are my opinions and you should satisfy yourself how the information in the Omdudsman’s News affects you. If anyone is unhappy with the way their enquiry or complaint has been handled they can contact the Ombudsman at Link 2. Advice for consumers is at Link 3 below.
Link 2: http://www.financial-ombudsman.org.uk
Link 3: http://www.financial-ombudsman.org.uk/publications/consumer-leaflet.htm
Staying with the question of risk due to prostate cancer if you declare your prostate cancer and treatment there is a risk that your travel insurance may not cover prostate cancer problems. On the other hand if you do not declare your prostate cancer and treatment and you make a claim on travel insurance for something else and it is discovered that you have not declared your prostate cancer your policy could be cancelled.
2. Improving access to insurance for people with pre existing conditions
In June 2017 prompted by the concerns about people with pre-existing medical conditions having difficulty in obtaining travel insurance the Financial Conduct Authority (FCA) issued what is described as a “Call for Input”. This was to gather information from companies involved in travel insurance and from individuals with medical conditions about their personal experiences of arranging travel insurance. The aim is to create a new service to redirect customers with pre-existing conditions to specialist providers, and that must be good news!
There looks to have been a high level of interest in the “Call for Input” which brings into question the lack of quality information about the options available about what you can do when you have a high quote for travel insurance or you are refused cover. This linked to the lack of understanding by firms and consumers about insurance terms and the risk factors that affect consideration of travel insurance premiums. You can read about this in the report “FCA challenges industry to improve access to insurance for pre-existing medical conditions” at Link 4 below.
Link 4: https://www.fca.org.uk/news/press-releases/fca-challenges-industry-improve-access-insurance-people-pre-existing-medical-conditions
3. Repatriation costs and international air ambulance information
I put together an information note “Travel Insurance and the European Health Insurance Card” in 2005 after seeking the views of an international insurance group. The DH do not endorse individual articles or information but no dissent was expressed about my information note. The was on another prostate cancer website for 10 years and although it is no longer on that website anyone who was around on this Forum since that time may remember it. The following is an extract about repatriation costs from the Information Note.
As mentioned earlier arranging a holiday with travel insurance which excludes cover for prostate cancer comes with a risk which may or may not be small but such a risk could have a very expensive outcome. For example, a risk which does not get much detailed publicity is the cost of repatriation to the UK following medical treatment in another country for treatment connected to your prostate cancer, if this becomes necessary.
The cost of repatriation is not covered by the EHIC. Repatriation costs are generally included in your travel policy provided you disclose your past and current medical conditions and your insurer accepts the risk. However, repatriation costs will not be covered by your travel policy in respect of a pre existing medical condition which you have not declared and the policy may be cancelled.
If a pre existing medical condition which should have been declared was not declared and is wrongly covered by the policy and you need to be repatriated to the UK this will cause your policy to be cancelled. You will then have to meet the cost of the repatriation.
The cost of repatriation back to the UK can be very expensive, not to say crippling!
If you are concerned about the possibility of having to pay your own repatriation costs you may wish to contact an international air ambulance company to find out the details and cost of being repatriated to the UK.
Repatriation costs will depend on a number of factors, for example:
- the distance from the UK of the country from which you will be repatriated;
- the complexity and urgency of the medical condition;
- the number of medical staff, doctors and nurses, needed to escort you back to the UK;
- whether the repatriation flight is on an aircraft of the international air ambulance company or the flight is a commercial flight, with escorts;
- if a commercial flight has to be used the cost will reflect anyextra seats which will be needed for the patient, a companion and escort(s). If it is necessary to partition off extra seat space this will increase the cost;
- if the flight has to be diverted because of a medical emergency you will be responsible for any additional costs relating the diversion.
As mentioned, the cost of repatriation is subject to individual circumstances but may be in the region of those shown below for individual countries:
Ireland £3,500
France £4,800
Italy £10,500
Spain £14,000
Greece £19,700
Turkey £22,500
Thailand £65,000
USA £49,000 (East coast)
Google “international air ambulance services” for more information about repatriation arrangements.
The information in Section 1 explains the principles of arranging travel insurance. Section 3 covers the arrangements for repatriation to the UK how the cost can be very expensive. You may need to take further advice on these questions and I suggest you speak with a professional travel adviser or an international air ambulance company to find out the detail of how this works and the cost of getting you and/or your family home. I understand that the cost of repatriation must be paid upfront.
I hope this is useful.
Alan
Edited by moderator 06 Jul 2023 at 10:42
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