Marcus Hearn MD warns on multi-trip insurance

Policy review

Marcus Hearn MD warns on multi-trip insurance

THOUSANDS of annual multi-trip travel insurance policies are giving clients less than 12 months’ cover.

Marcus Hearn managing director Jeffrey Klipp said wordings on policies have been tightened up to make premiums cheaper, resulting in some policies taking effect from the date it was sold, not the date of the first holiday.

Klipp said: “If a client buys a two-week holiday and a single-trip insurance policy on November 1, for travel on August 1, the policy does not take effect until the holiday starts but free cancellation cover is in place from the date that contract was issued.

“It should be the same with annual cover, but there are now some policies on the market that become valid from the date of issue,” he added.

“A client who does not go on holiday until three months after they bought the insurance only has nine months left on the policy.”

Klipp urged clients to buy insurance at the same time as their holiday to benefit from free cancellation cover. He also advised agents to look out for policies that start 12 months from the commencement date of the first trip.

“The problem is most people do not read their policy and if they did, they probably would not understand this.”

Euclidian Risk Management director Steve King denied holidaymakers are getting a bad deal. “Insurers cannot be expected to give more than 12 months’ cover on an annual policy. It doesn’t make sense,” he said.