Can drinking on holiday invalidate your insurance?

Holiday is a time to relax and for many of us that often involves a drink or two. The last thing on your mind is going to be whether your insurance will cover you if you injure yourself whilst under the influence of alcohol.

But for many people, their holidays have turned into a complete nightmare when they have suffered an injury only to find out their insurance company won’t pay out.

The trouble is, consumption of alcohol is a grey area under travel insurance – how much, what is excessive, did it contribute the accident or injury?

Last year the Financial Ombudsman Service were contacted by 2000 people who felt their travel insurance claim was unfairly turned down because of alcohol. It seems it’s worth questioning as they upheld 53% of travel insurance cases referred to them– up from 42% in 2011.

So why are so many cases upheld?

The FOS found that terms describing alcohol consumption often aren’t clearly defined in policies – or have been unfairly applied by the insurer to reject a claim. For example, they’ve seen cases where insurers accuse their customers of “alcohol abuse” or “alcoholism”, even though medical evidence shows they only had one or two drinks.

To see the full report and case studies from the FOS, visit their website. It makes interesting reading – and something many of us can relate to.

As an independent broker, our role is to insure a swift and fair settlement of your claim so we would act on your behalf in claim disputes such as these. A good reason use a broker next time you book your travel insurance.