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Un-filed insurance claims worth £13 billion

British holidaymakers lost a total of £13 billion last year in un-filed insurance claims, according to new research.

Out of every ten travellers with insurance policies, only seven will make claims when they are entitled to, leaving thirty per cent losing out.

A recent survey found that 62 per cent of those taking a vacation abroad have experienced delays in their flights. A total of 22 per cent had their luggage either lost or damaged while travelling and 15 per cent had accidents or otherwise required medical insurance.

Although travel insurance generally covers all of these cases, less than one third of people who experienced these problems made a claim on their insurance.

One of the leading reasons why claims were not filed was the high excess on many policies. A third of those surveyed said that was the reason for not claiming. Another 20 per cent said that filing for insurance was too much work.

The least likely group of people to make an insurance claim were those under the age of 40. This may also be the group most likely to take out a cheap insurance policy with very high excess levels a kind of policy which, according to this research, is not very useful.

The survey, which polled 2,000 people, was conducted by the Post Office. Helen Warburton, a Post Office representative said: Travel insurance is designed to protect you should something go wrong. And if something goes wrong and your policy covers that scenario, you should claim.

Warburton warned that cheap insurance policies with excesses around £250 pounds just don't make financial sense since it often isn't worth claiming for flight delays or damaged luggage.

It means holidaymakers pay twice, she explained, once for the policy and again for anything that goes wrong.

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Jennifer Jones Editorial

04/11/2007