YVETTE Greenley was gutted when her dream holiday to Egypt with sister Beverley was ruined when her flight was cancelled mid-air.
But the real nightmare began when she tried claiming her money back through her travel insurer – only for her claim to be rejected on a ridiculous technicality.
Yvette Greenley (left) with her sister, Beverley, were gutted when their dream trip didn’t go to plan[/caption]
Yvette had an 18 month battle on her hands trying to get her money back[/caption]
The 62-year-old secretary, from Northampton, had been due to go on holiday to Hurghada, Egypt, in June 2023 with her sister Beverley.
But two hours into their WizzAir flight the plane had to return to Luton Airport due to a technical fault.
The sisters were unable to rearrange their flight so they cancelled their trip.
But when Yvette made a claim on her Axa Partners travel insurance, she was gobsmacked that it was rejected.
The company refused to payout because it said her holiday had technically taken place.
Although WizzAir refunded her the cost of the flights, Yvette was left £140 out of pocket.
“I spent hours on the phone trying to get the issue resolved. It was so frustrating,” she said.
Yvette contacted Which? and it asked Axa Partners to reconsider its decision.
After an 18-month long battle, Yvette finally managed to get her money back. Axa Partners has now resolved the claim and refunded Yvette £140.
AXA Partners, said: “We apologise for the issues Ms Greenley has experienced during her claim.
“Upon further review, we have settled her claim in full and offered compensation in recognition of the delays.”
Insurance is supposed to give you peace of mind for when things go wrong, but making a claim can become a headache.
Last week consumer group Which? launched a super-complaint to industry regulator the Financial Conduct Authority after it identified failings in the insurance market.
ADELE COOKE explains the sneaky ways insurers are trying to get off the hook paying out on claims – and how to get yours approved.
WHAT’S HAPPENED?
Which? spent a year investigating the insurance market and found systematic problems with how policies are handled – particularly among home and travel insurers, who have some of the lowest claims acceptance rates.
This can leave customers in financial hardship or facing extra stress.
Sam Richardson from consumer group Which? said: “All too often we hear from people who tell us that dealing with their insurer has been more traumatic than the event that led to their claim.
“From tricky policy wording to unhelpful claims handlers, we’ve found insurance customers having to clear hurdle after hurdle just to get the money they’re owed.”
What is a super complaint?
A SUPER-complaint is a powerful legal tool that allows certain consumer organisations, like Which?, to raise concerns about widespread issues that harm large numbers of customers in a specific market.
It is designed to highlight practices that significantly affect consumers and demand urgent attention from regulators.
The Financial Conduct Authority (FCA) must respond to a super-complaint within 90 days, outlining whether it agrees with the concerns raised and detailing any action it plans to take.
Super-complaints are rare but can lead to major changes.
Which? last used this tool in 2016 to tackle banks’ poor handling of authorised push payment (APP) fraud.
While initially rejected, the campaign eventually led to new laws forcing banks to reimburse victims of bank transfer scams.
EXCESS TRICK TO PUT YOU OFF CLAIMING
Home insurers are hiking something called an “excess” on policies as a sneaky way to lower the amount they have to shell out on claims.
This means they are getting you to foot a bigger chunk of the bill instead.
Excess is the amount you agree to pay yourself when making a claim. The insurer then covers the rest.
Most buildings insurance policies have an excess of £250, according to Go.Compare.
But the number of policies with an excess of between £251 and £400 has increased from 2 per cent in 2019 to 15 per cent today – a 13 percentage point rise in just six years.
A burst pipe is one of the most common home insurance claims. It costs between £500 to £1,500 to fix.
Around 60 per cent of buildings insurance policies have a minimum excess of £400 for this claim, up from 16 per cent in 2019.
For example, if your excess was £100 in 2019 and the repair cost £500 then your insurer would pay for £400-worth of the cost.
But if your excess has risen to £400 then your insurer would only pay out £100.
Angela Pilley from Defaqto says: “High excesses can make it uneconomical to claim.
“If your excess is £400 and your claim is only £500, it may not be worth pursuing.”
BASIC POLICIES LEAVING OUT KEY FEATURES
Home insurers are asking customers to buy add-ons they would have expected to already be included in their policy, which means you may not be covered for your claim.
For example, only 23 per cent of policies include full accidental damage protection, which covers one-off unintentional damage to your home or belongings.
Meanwhile, just a quarter of home insurance policies include home emergency cover, which provides protection for your home, boiler and appliances.
For example, Axa Home Insurance does not include accidental damage or buildings or home emergency cover.
It’s crucial to check the T&Cs thoroughly to make sure you’re not unknowingly leaving yourself underinsured on basic cover.
James Daley, from the consumer group Fairer Finance, said: “Some insurers find a way to interpret their policy wording in the most rigid way, which can help them to avoid paying out claims.”
SMALL PRINT TRICKS
Home insurers are also burying picky conditions in the small print of policies, catching customers out when making claims.
Sam said: “In many cases people feel as though the small print is being used against them.
“Take for example homeowners who have suffered storm damage, only to be told that their property flooded too slowly or that the wind wasn’t blowing quite fast enough to qualify for cover.”
It’s vital to read the T&Cs to avoid being caught out, said James.
“In one case a homeowner’s pipe burst in a wall and there was a massive leak,” he said.
“The wall had to be torn down to find the broken pipe and get it fixed. But the insurer said the pipe was really old so it’s wear and tear and didn’t pay the claim. It’s ridiculous. We can’t all start tearing down our walls to check the pipes.”
Read your policy carefully before you sign up to ensure you understand what is included.
TRAVEL POLICY HIDDEN COST
It’s not just home insurers using excess tricks to get you shelling out more – travel insurers are too.
Some policies apply one excess for every claim you make.
But others charge an excess per person, which can double the cost.
Meanwhile, other insurers charge an excess for every person and section of the claim you make.
If you and your spouse have your luggage and money stolen and you have this type of excess then you would have to claim under four sections, which means four excesses could be applied.
For example, even if you have a group or family policy, Staysure charges an excess per insured person per policy section.
If your excess is £100 then your bill would be £400.
INSURERS SLASHING POLICY FREEBIES
Car insurers are becoming more stingy in terms of freebies offered on policies.
This is mainly because it has become more expensive for insurers to fix any repairs, so they have slashed perks to recoup costs.
Ten years ago it was common not to have to pay an excess if your windscreen needed repairing, Angela said.
But today just a quarter of policies allow drivers to get a repair for free.
Over half of policies now have an excess of £25 or more that motorists must pay if their windscreen needs repairing.
For example, Saga Standard car insurance charges a £25 excess for windscreen repairs.
Meanwhile, 86 per cent of policies have an excess of £100 or less to replace a windscreen in 2015 but this has fallen to 45 per cent today.
Angela said: “Providers are applying a range of excesses based on the type of car being insured and this ranges from £50 all the way up to £300.”
