7 Travel Insurance Claim Rejection Reasons and How to Avoid

Travel insurance offers financial protection against unexpected situations like flight delays, loss of passport, medical emergencies, baggage loss and more when travelling internationally. However, your financial protection may not be effective if your claim is rejected due to avoidable mistakes. Here is why you must be aware of suspected travel insurance claim rejection reasons so that you can avoid such a situation.

Often, travellers provide incorrect information or do not mention pre-existing diseases while purchasing a policy. It may lead to a claim rejection. Explore this article to understand the core reasons behind claim rejection and how to avoid them.

What are the 7 Crucial Travel Insurance Claim Rejection Reasons?

Travel insurance claim rejection is very common in India, and you need to be careful of some factors before purchasing your policy or claiming it. Let us find the crucial reasons behind it and how to avoid travel insurance claim rejection.

1. Incorrect Information

Paperwork is one of the most important aspects when buying the plan. During a claim, if any information is found to be untrue, it could lead to claim rejection. If important personal details such as your name, date of birth, passport number, or travel dates are incorrect or inconsistent with official documents, your claim may be delayed or rejected. In fact, incorrect information often becomes one of the travel insurance claim rejection reasons.

How to Avoid

- When buying travel insurance online, provide all the information correctly.

- Fill out the details as they are in the original documents to avoid future hassles.

2. Cancellation of Trip Due to Personal Reason

In case of trip cancellation due to a reason not listed in the travel insurance policy document, your insurer will reject your claim. Natural disaster, demise of a family member, medical emergency, and flight cancellation are some of the listed reasons. Suppose you cancel your trip because you changed your mind; your claim must be rejected.

How to Avoid

- Ensure you understand the travel insurance coverage list in depth.

- Choose a policy that offers trip cancellation benefits suitable for your travel needs, if available.

3. Undeclared Medical Health Condition

If anyone does not disclose any chronic or severe medical condition before buying the travel insurance policy, the insurer will reject the claim. Suppose Mr A. has asthma and purchases travel insurance for Thailand without mentioning it. In case he has an attack and is admitted to a local hospital in Thailand, the insurer will reject his claim for medical expenses.

How to Avoid

- Ensure you mention all correct health information to the insurer when buying the plan.

- You must keep all your medication with you while travelling to prevent your travel insurance claim from being denied.

4. Missing Bills

While filing a claim, supporting documents are to be attached and submitted. These proofs could be tickets, associated paperwork, bills, and much more. In case you incurred medical treatment in a foreign country, ensure you keep all the bills and papers related to it handy. When filing the claim, provide all the important evidence, ensuring hassle-free claim settlement.

How to Avoid

- Take photographs of every bill, receipt, and correspondence the moment it happens.

- Save every email and keep a record of every conversation with your insurance provider.

5. Not Reading Updated Policy Terms

Every travel insurance policy comes with its own terms, conditions, exclusions, and claim requirements. Assuming that all policies offer the same coverage or relying on a previous policy without reviewing the latest policy wording can lead to misunderstandings. If your claim falls under an exclusion or you fail to meet the policy conditions, your travel insurance claim may be rejected.

How to Avoid

- Compare travel insurance plans of more than one company and make a wise choice.

- Carefully read the policy wording, including the coverage, exclusions, and claim conditions, before purchasing the policy.

6. Not Filing an FIR for Theft or Loss

Failure to report theft to the local police promptly may result in claim complications or rejection, as per your policy terms. If your passport, documents or money get pickpocketed or you lose your belongings at airports, cabs, or hotels, you can get a claim only if you submit the FIR document.

How to Avoid

- File an FIR locally, even abroad, in case of robbery, pickpocketing, or theft.

- Keep all documents in both soft and hard copy to keep a trail.

 7. Adventure Activities Without Coverage

Most of the insurers do not provide cover for adventure-related activities. Therefore, if you suffer an injury while participating in an excluded adventure activity, the claim is likely to get rejected. Adventure-related injuries may also be excluded unless the activity is covered under your policy.

How to Avoid

- You must check your policy clauses before purchasing.

- It is always advisable to include an adventure sports add-on with your insurance policy to avoid claim rejections arising due to adventure sports.

What Documents Do You Need to Claim Your Travel Insurance?

There are 5 documents that your insurer requires for a travel insurance claim process, such as: 

1. Completed and Signed Claim Form: It is available in the insurer's app, website, or claim portal.

2. Policy Certificate: You must present the policy certificate you received before travel.

3. Passport Copy with Entry/Exit Stamps: You must submit it to confirm that you visited the destination where the incident occurred.

4. Original Tickets or Boarding Passes: You must show the original tickets as proof of your travel itinerary and journey dates.

5. Cancelled Cheque or Bank Details: You need to submit it for reimbursement of your expenses directly into your account.

You must keep all your documents handy. Absence of any one document can also be one of the significant travel insurance claim rejection reasons.

Expert Tips on How to Avoid Claim Rejection

1. Communicate As Soon As Possible: Notifying your insurer through the emergency helpline as early in the incident as possible is the golden rule for settling a claim hassle-free. Keep the call record safe.

2. Real-Time Documentation: Document every necessary expense related to the incident. Keep photos, screenshots or soft copies of each receipt and bill.

3. Read Your Policy Before You Travel: Check all the coverage details so that you do not miss anything before claiming.

4. Collect All Check-In And Check-Out Details: Not just expense-related documents, you must keep evidence of your presence at the location and travel timeline.

Choose a trusted travel insurer such as Bajaj General Insurance to get travel insurance that matches your travel needs and offers support throughout your journey.

Wrapping It Up

Claim settlement varies from insurer to insurer. You must find a reliable insurer who can provide timely assistance during emergencies. Choose the right travel insurance plan and enjoy a stress-free holiday. Being aware can prevent you from learning about the policy the hard way. Be mindful beforehand to avoid claim rejection. Happy Travelling!

Frequently Asked Questions

Does travel insurance cover drink-driving accidents?

No. Most travel insurance policies exclude claims arising from driving under the influence of alcohol or drugs.

Can anyone get a claim if he had an infection from a tattoo abroad?

No. Travel insurance generally does not cover complications arising from elective cosmetic procedures such as tattoos unless specifically covered under the policy.

What if I cannot contact the insurer within 24 hours?

In case you cannot contact the insurer within 24 hours, you need to provide a valid cause and retain evidence, such as screenshots or other supporting documents, explaining the delay.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to change. Please consult an expert before making any related decisions.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.