Phone stolen on trip abroad - insurance fun and games

[clk208]

Had my phone (iPhone 4s) stolen yesterday on a short European trip.

The phone was stolen when I was in Hungary and it was quite a challenge indeed to get a police report. Anyway I persisted and have a crime report/reference number after wasting many hours.

On viewing my Travel Insurance schedule (insurer is Swiftcover) I note my cover (premier worldwide cover) covers mobiles up to £400 which would cover the bulk of the replacement cost. On contacting them, they want my home insurance details before they will proceed with the claim - apparently if it is covered by home insurance they won't pay out.

I stalled them by claiming not to know who my home insurer was and checked my policy - I don't have the possessions away from home cover. However, ideally I wouldn't want my home insurer dragged into this and contacted (presumably logging a theft which may increase future premiums). Anyone come across this before? Begs the question what travel insurance is there for!

Anyway, saw and rode in a nice range of different Mercedes from various eras on my trip, I will elaborate when I get chance!

 

[Sp!ke]

I can understand that they might want to ensure you dont claim twice for the same loss but frankly it is up to you which policy you wish to use in the event of a claim.

*unless of course this is covered in the terms and conditions*

 

[Kris-H]

It will be covered under the terms and conditions of the policy as "dual insurance" or "dual indemnity" i.e the same thing is covered by 2 insurers.

In such cases the policies generally are worded so that the insurers have to share the loss between them, each paying an equal share of the claim.

As has been said above it's also so that people don't claim for the same thing from several insurers, as the overriding principle of insurance is to put you back in the same financial position you were in prior to the insured event taking place, not for the insured to profit from the loss which was considered (in law) to be unreasonable and unethical.

 

[Spinal]

I would suggest going back to the travel insurance people with a copy of your home insurance contract, showing that it's not covered

 

[clk208]

Thanks folks.

Explained I don't have possessions away from home cover and they basically said fine.

They are paying out the grand sum of £200. The £400 limit was all items - £200 per item..

Well worth half a day dealing with obstructive, useless local police force (grateful to the airport police though for actually helping me with this).

 

[Sp!ke]

Travel Insurance seems to be such a rip off...

Why bother spending the money on Insurance, then spend half a day trying to deal with police the all the trouble dealing with the claim to find they only pay out a fraction of the value you lost.

Was it really worth wasting all that time and energy or would you have been better off taking the loss on the chin?

 

[TDE1]

Well explained Kris-H.

CLK208, it might be worth adding the personal possessions cover to your home policy, in case the same thing happens when you're not on holiday. Also you'd be covered for accidental damage/loss etc. it's not normally a huge additional premium. Just a thought

 

[markjay]

Travel Insurance seems to be such a rip off...

Why bother spending the money on Insurance, then spend half a day trying to deal with police the all the trouble dealing with the claim to find they only pay out a fraction of the value you lost.

Was it really worth wasting all that time and energy or would you have been better off taking the loss on the chin?

That's what I thought... until I became seriously ill on a trip some years ago and my travel insurance (which was a freebie with a bank card!) paid-out a 5-figure sum for my medical treatments abroad.

I wouldn't leave home without it...

 

[Sp!ke]

I also have a fee one on my bank card that in theory would cover this sort of eventuality.

I looked on the comparison sites for what you actually get for a paid for policy and the answer was 'not a lot'.

The cover was almost meaningless. Missed flight cover for instance only included cover should the flight be missed because the plane itself had a mechanical failure.... If this was the case then surely the airline would lay on another plane?

 

[Kris-H]

If you haven't already guessed, I work in the Insurance industry and view Travel insurance as one of those things you buy to cover "disaster" situations ..mainly medical stuff.

Flight delay, missing luggage .. yes its a pain in the butt, but when you consider an air ambulance flight alone can easily get into 5 figures .. then suddenly paying £60 for a policy is worth it.

 

[Sp!ke]

If you haven't already guessed, I work in the Insurance industry and view Travel insurance as one of those things you buy to cover "disaster" situations ..mainly medical stuff.

Flight delay, missing luggage .. yes its a pain in the butt, but when you consider an air ambulance flight alone can easily get into 5 figures .. then suddenly paying £60 for a policy is worth it.

I agree ... but then surely it should be sold as holiday medical insurance. Everything else is just another mis-selling rip off waiting for another round of government enforced compensation payouts.

 

[Spinal]

I've had my run ins with travel medical insurance, and found that it's largely dependent on where you are going.

In some places, the hospital will want cash before even xraying you after a car accident, credit cards/insurance cars are not accepted.

I've always seen travel insurance as something that I would consider if free with my cards/band account - otherwise a waste of money.

Repatriation cover (where they come and get you rather than refund you after you make your way you) and blood cover (where they fly blood out to you, utterly crucial in some countries) I see differently. (e.g. things like global rescue)