Complaints about travel insurance jumped by nearly a fifth (19 per cent) in 2023-24, according to the Financial Ombudsman Service (FOS).
It recorded 4,466 complaints, the highest since 2020-21 when pandemic-related travel disruption sparked widespread criticism from consumers.
Complaint levels continue to remain higher than pre-pandemic levels, with people complaining primarily about insurers rejecting claims.
FOS said there were growing instances of policyholders being told that medical conditions had not been properly disclosed, people being dissatisfied with the levels of emergency assistance after falling ill abroad, and complaints about delayed or missed flights as well as lost and stolen luggage.
Abby Thomas, the chief ombudsman, warned that customers needed to check policy terms and conditions carefully.
“It’s concerning to see so many people dissatisfied with their insurance provider,” she said. “It’s so important that firms take the time to explain terms, treat people fairly and ensure everyone understands their policy.
“With the holidays upon us, and families heading overseas on their summer breaks, it’s crucial that people taking out travel insurance know what they are signing up to.
“If people aren’t happy with how they have been treated, they should contact our free, independent service and we’ll investigate.”
A spokesperson for the Association of British Insurers (ABI) said: “Insurers always want to provide the best possible service for their customers. When complaints are made, they will look to learn from them, including working closely with the FOS to understand any necessary improvements.
“It’s vital that customers understand what they’re covered for and they make sure they have the right policy to meet their needs. Travel insurance is primarily designed to cover the cost of any emergency medical treatment needed overseas, so it’s important insurers fully understand the details of any pre-existing conditions.
“Not disclosing, or only partially disclosing, pre-existing medical conditions risks invalidating a claim, so customers should answer all medical questions accurately and honestly.
“Insurers recognise the importance of clear communication and our members are always working on improving the way they set out policy information so it is as clear and accessible as possible.”
The FOS sets out guidelines to help travellers avoid the most obvious pitfalls.
Always check the small print of your travel insurance policy
Checking the policy terms and conditions carefully is incredibly important, including what medical history you need to tell your insurer about and what activities are covered under the policy.
Understand the policy’s exclusions – or you may not be covered
Most travel insurance policies specify the events that are insured under the policy and the general exclusions that apply to the policy. Even if there is no specific exclusion, it does not automatically mean you are covered.
Travel insurance is not private medical insurance
Travel insurance is not the same as private medical insurance. Most policies require you to seek treatment in a public hospital. The insurer may not pay for private treatment unless it is required (for example if there are no suitable public hospitals locally).
You may need to tell your travel insurer about medical conditions, even if you have fully recovered
Check what your insurer needs to know about pre-existing medical conditions, otherwise you may not be covered.
Your travel insurer may not agree to fly you back to the UK if you become unwell abroad
There is no requirement for your insurer to fly you home. It is up to the insurer whether it is a medical necessity. They may ask you to get treatment abroad and wait until you are well enough to return.
Your travel insurance may not cover missed flights caused by security delays, airport evacuations and/or problems with visas and passports
Most travel insurance policies do not cover any of these things and will only cover flights missed because of a specific list of insured events such as: Failure of or delays to public transport, accident or breakdown of the vehicle in which the policyholder is travelling, accident or breakdown of another vehicle on the motorway, strike, industrial action or adverse weather conditions.
If your circumstances change and you can no longer go on holiday, your travel insurer will not always cover you
If you change your mind about travelling, your insurance might not cover you. Cover will generally only be provided if a cancellation is caused by a specific insured event, and the insurer is generally entitled to require reasonable supporting evidence.
Furthermore, when purchasing an annual travel insurance policy, it must start from the day of purchase otherwise there will be no cancellation cover in place.
Lost luggage – should your insurer be the first port of call?
Travel insurers will generally require a policyholder to obtain a Property Irregularity Report from their airline while still at the airport and provide proof from their airline that the luggage cannot be located before considering a claim.