Taking out travel insurance and then not using it seems to defy logic. But a new study has found that more than half (55%) of Aussie travellers who are entitled to make a claim after an incident abroad don’t actually go through with the claim.
Conducted by TravelCard, the study also revealed that nearly one in two (45%) travelling Australians have experienced an incident overseas, which means a lot of people are missing out on a lot of insurance refunds. And when they do make claims, the survey found that four in five (82%) travellers say they’ve had issues with the process.
At the top of the grievances against the claims process are the opinions that they ‘involve too much paperwork’ (44%), ‘claims are only partially reimbursed’ (32%) and ‘they take too long to settle’ (31%).
Even more frustratingly for travellers, seven in ten (72%) holidaymakers said a quick and easy process was important when weighing up different providers.
The main motivation for travellers to make a claim are trip cancellations (50%), while the most common incidents are Delayed flights (32%), Receiving medical treatment (30%), and Losing, damaging or having your goods stolen (28%).
“One of the most annoying things for travellers when it comes to travel insurance is the mountain of paperwork that needs completing when you return, and how long reimbursement can actually take,” TravelCard user and travel show presenter Catriona Rowntree said.
“Having your holiday ruined by an unforeseen incident is bad enough, let alone the added hassle of claiming on your policy.”
The study found that one in four (25%) travellers would be put off taking out travel insurance for short trips, while nearly half (44%) would baulk at insurance because of its affordability.
Have you ever decided not to make an insurance claim when one could've been made?