Drunk tourists may lose their insurance claims, ombudsman warns

Insurers have denied tourists' insurance claims when they considered excessive drinking had been involved in the accident

In 2017 the UK Financial Ombudsman handled 213,418 cases of payment protection insurance where clients believed they had been treated unfairly by their insurers. 3,000 of these complaints were regarding travel insurance, including several relating to disputes over alcohol consumption.

According to the ombudsman, tourists should carefully read the small print in their travel insurance policies to be aware of what is covered and what is not. They have also warned that if heavy drinking had been involved they could lose their claims.

The ombudsman has also reassured travellers that this does not necessarily have to mean “dry” holidays, but said that each case is to be reviewed carefully and it is down to the insurer to prove whether too much drinking was to blame.

Insurers will sometimes believe that clients have been drinking excessively when in fact someone might have had one drink and been in an accident. In that case the alcohol would not be the reason for the claim.

The clients will usually need a medical certificate to prove their sobriety at the time of the accident. In one case pointed out by the ombudsman, a tourist had slipped in the toilets and banged his head while at a bar.

The insurer refused to pay his claim and argued he had been dangerously drunk. The medical reports showed that although the client did have a concussion there wasn’t excessive alcohol found in his bloodstream.

The high risk of a serious injury can lead to claims being complex and expensive so the insurer is likely to be very specific about what they will cover. If the insurer has been unclear or has applied the policy unfairly the ombudsman will seek payment for the clients even if it isn’t strictly covered.

On average, four out of ten cases the clients had been right and had received payments from their insurers with interest.

The ombudsman explains that many of these complaints are cases of cancelled holidays where the policy doesn’t apply, winter sports and cruise breaks.

Caroline Wayman, chief ombudsman, said, “Encouragingly, compared with recent years, we’re generally upholding fewer travel insurance complaints. This suggests – while there’s still clearly work to do – that many insurers are increasingly treating their customers in a fair and reasonable way."