Case study Travel insurance – immediate travel cancellation

What happened

Mr K cancelled a holiday to Cape Verde due to a urinary tract infection. His doctor advised him against the trip because of inadequate medical services at the holiday destination.

The travel insurance refused to meet Mr K’s cancellation claim. It pointed out that there were local healthcare services of sufficient quality. Also, Mr K had recovered before he was due to depart and would have been fit for travel.

Mr K considered this unfair, because in consultation with his doctor he had reported his cancellation to the insurer in due time. He referred his complaint to the Ombudsman Office and told us that he had been surprised himself by his quick recovery.

Outcome of Ombudsman investigation

We successfully intervened with the insurer. We argued that in view of his obligation to avert or mitigate the consequences of the damage, Mr K had done well to cancel the holiday as soon as there was evidence of the disease.

At that point in time only 20% of the trip costs incurred. If he had cancelled the trip shortly before he was due to travel, it would have been 100%.

Moreover, the principle “hope for a favourable course of disease is not insured” also applies to insurers. If the medical condition of the policyholder improves – after the reason for a cancellation has occurred – so that he could have set off on his journey, then this falls within the insurance company’s risk.