Insurers found a new way to evade payouts: what to do.

Difficulties with reimbursement

According to The Sun: Yvette Greenley was disappointed when her dream vacation in Egypt with her sister Beverly was ruined due to flight cancellation in the air.

Real troubles began when she tried to get her money back through her insurance, but her claim was denied due to an absurd technical detail.

The 62-year-old secretary from Northampton was supposed to go on vacation to Hurghada in June 2023 with her sister Beverly.

However, two hours after takeoff, the WizzAir flight had to return to Luton Airport due to technical failure.

The sisters could not reschedule their flight and decided to cancel the trip.

When Yvette applied for a refund from Axa Partners, she was shocked to learn of the denial.

The company denied compensation, claiming that her vacation actually took place.

Although WizzAir refunded her ticket prices, Yvette was left with a debt of £140.

“I spent hours on the phone trying to resolve this issue. It was very frustrating,” she said.

Yvette reached out to the organization Which?, which asked Axa Partners to review the decision.

After an 18-month battle, Yvette was finally able to recover her money. Axa Partners resolved the matter and reimbursed Yvette £140.

AXA Partners stated: “We apologize for the issues Ms. Greenley faced during her claim submission.”

“After a review, we fully resolved her claim and offered compensation as a recognition of the delays.”

Insurance demands and reality

While insurance is supposed to provide peace of mind in difficult situations, the claims process can be quite complicated.

Last week, the consumer organization Which? filed a complaint with the financial market regulator due to issues in the insurance sector.

Sam Richardson from Which? noted: “We often hear from people that interacting with their insurer was more traumatic than the event that led to their claim.”

WHAT HAPPENED?

Which? conducted an annual insurance market study and found systemic problems in policy processing, particularly among home and travel insurers, which have the lowest claim acceptance rates.

This can lead to financial difficulties for customers or cause additional stress.

What is a super complaint?

A SUPER complaint is a powerful legal tool that allows consumer organizations like Which? to raise concerns about widespread issues that harm a large number of customers in a specific sector.

This tool aims to highlight practices that significantly impact consumers and demand urgent attention from regulators.

The Financial Conduct Authority (FCA) must respond to a super complaint within 90 days, detailing whether it agrees with the raised issues and what actions it plans to take.

Super complaints are rare but can lead to significant changes.

HIDDEN COSTS IN TRAVEL POLICIES

Not only property insurance has tricks with costs - travel insurers do too.

Some policies include a single deductible payment for each claim submitted, while others charge a deductible for each person, which can double the costs.

This can be especially challenging if your luggage and money are stolen, and you need to submit several claims.

Therefore, changes in policies can have serious consequences for consumers. It is important to carefully check the terms to avoid being misled by unnoticed details in insurance policies.

INSURERS REPORT DEDUCTIBLES IN POLICIES

Insurance companies are starting to reduce free offerings in policies due to rising repair costs.

One example is the mandatory deductible for windshield repair, which previously was not required.

Today, only a quarter of policies allow free glass repair, while most coverages establish a deductible.

Understanding the terms is crucial to know what you can expect in case you need a reimbursement, so read every item before entering into an agreement.