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WHEN planning your next holiday, be sure to pack a magnifying glass. It will come in handy for going through the travel insurance small print to uncover potential pitfalls.
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The devil lies in the detail for all insurance, but travel policies are among the worst for hidden clauses because they cover so many possibilities - anything from personal liability to lost luggage. Even if you think you know exactly what is included, a claim could result in disappointment.
Clive Boden, 51, went on a snow-boarding and skiing holiday in Austria with his family in December. As a Lloyds TSB gold service customer, he had free annual travel insurance. But to obtain annual cover for winter sports, he had to pay an extra £110.
Clive, a commercial photographer who lives in Twickenham, Middlesex, checked the small print on the policy before paying for it. 'I'm not someone to be taken in by something for nothing and even with the winter sports premium it was cheaper than I could get elsewhere. There was an excess of £75, which I thought was high, but overall the policy seemed fine.'
Clive says that what the policy failed to make clear was that the £75 excess applied to each section of the policy he made a claim on, and not to each claim.
Unfortunately, on New Year's Day he slipped and broke his ankle while using a ski lift. He says: 'I thought I had sprained it at first and didn't go to see a doctor until the next day, when it was far worse. The doctor X-rayed my ankle there and then and put it in plaster.'
After returning home, Clive claimed on his policy for £210 of medical treatment and £90 for two pairs of trousers - one ripped when he fell and the other was cut up when his leg was put in plaster. But he had to pay the first £150 of the claim himself: a £75 excess for the medical bill and a second £75 excess for the trousers. Clive says: 'I rang Lloyds TSB because I thought there was a mistake. I've never come across this kind of excess before and it's not something I expected from a major bank.'
Lloyds TSB spokeswoman Kirsty Clay says it is not unusual for travel policies to have an excess for each section: 'Other companies use the same approach and the way we treat excesses is clearly stated in the terms and conditions.'
But Paul Charles, of online insurance broker Screentrade, says an increasing number of companies put a cap on excesses. He says: 'A limit of £50 or £100 for the total excesses on each claim is quite common.'
The Financial Ombudsman Service, which deals with consumer complaints, is concerned about travel policies and the complex terms and conditions. Spokesman David Cresswell says consumers believe they are paying for a level of cover that they will not receive. He says: 'Policies vary widely and the small print is often detailed. But just one sentence could make a huge difference to a claim.'
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