Illness and family emergencies account for most cancellation claim costs

Illness, injury and bereavement account for the vast majority (89%) of cancellation claim costs, according to new insurance research.

 

The study by travel insurance specialist Just Travel Cover also found travel disruption is the top concern for holidaymakers, with news stories about airline delays, industrial action, extreme weather and global events influencing travellers’ perceptions.

 

However, travel disruption accounted for just 8% of cancellation claim costs, the company found in its analysis of 2,392 travel insurance claims.

 

Furthermore, 60% of 415 survey respondents had not yet purchased travel insurance despite 78% already having booked or planning a holiday.

 

Dale Robinson, Just Travel Cover director, said: “One of the key takeaways for travel agents is that many travellers appear to be focused on disruption and global events because that’s what they’re seeing in the headlines.

 

“It’s another reminder of the value of discussing travel insurance at the point a holiday is booked, rather than leaving it until closer to departure.”

 

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He said agents who introduce customers to a specialist insurance provider can help ensure travellers have access to cover from the moment they book, including cancellation cover during the months leading up to departure.

 

“Travel insurance isn’t just about what happens overseas. Many of the claims we analysed related to events that occurred before the customer had even left home,” he said.

 

The research showed that more than four in 10 claims (43%) were for cancellation or curtailment and the average cancellation claim was £869.

 

The largest cancellation claim was £12,562 following a pre-departure illness.

 

Other examples included a family holiday cancelled because a child contracted chickenpox shortly before departure – resulting in a £5,300 claim – and another family forced to cancel a trip to Turkey after their daughter was hospitalised, resulting in a claim of almost £7,000.

 

Robinson added: “Travel disruption understandably captures people’s attention because it’s what they see in the headlines.

 

“But when we analysed actual claims, the overwhelming majority of cancellation costs were linked to illness, injury, family illness and bereavement rather than disruption.

 

“Many claims don’t involve the traveller themselves. A travelling companion becoming unwell, a close family member being hospitalised, or a bereavement can be enough to stop a holiday from going ahead.”

 

Medical claims represented 56% of all claims costs, with the largest medical claim costing more than £51,500.

 

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