More insurance worries

**nobbie48** · 03-10-2012, 10:23 AM

I watched Marketplace last night and it was about travel insurance, the stuff you buy when you take a trip to the USA so you don't lose your house if something goes wrong.

There are serious doubts as to whether the policies are worth the paper they're written on.

The hook is that if you lie or fail to reveal an answer to any question anywhere on the policy the policy is null and void even if the question is unrelated to the claim. One old guy had paid thousands for insurance and was glad he did because he had a heart attack while in the USA. They denied the claim because he had failed to mention having a common colon condition (Diverculosis sp). The colon condition had nothing to do with the heart attack. The old guy got a bill for $300K. He wasn't the only one.

Part 2 is the forms that have to be filled out. The travel agents selling the policies don't understand them and if they have any ethics at all, tell you to have your doctor to answer the questions for you. Hook number 2 is that the forms are written by lawyers and doctors are not lawyers so often can't grasp subtle meanings. IE Have you ever been treated for a heart condition? You answer no because you are in good health and your doctor, to be safe, gave you an ECG and you passed with flying colours. However the insurance company considers an ECG a treatment and you lied saying you didn't have any treatment. Claim denied for the appendix attack (Totally unrelated to the heart).

Of course the insurance company hid away in their ivory towers when asked to comment.

While this isn't directly about motorcycle insurance it might affect your next trip to the Gap.

**tricky** · 03-10-2012, 11:09 AM

aahhhh that's crazy...

On a similar note, I saw the news a few days back, and they did a bit on trip cancellation insurance. One incident, a couple was planning a trip to Isreal, and bought this insurance for $350 (from co-operators, I believe) and before the trip, the man got diagnosed with cancer and couldn't go because he needed major surgery. The insurance company refused to pay out because they claimed he should have known he had cancer.. they expect you to be in good health for 2 months before the trip. They didn't even give him his $350 back.

What doesn't make sense to me is I would assume health related problems would be the #1 reason to cancel a trip. It's criminal

**sonnythebull** · 03-10-2012, 12:45 PM

Originally Posted by nobbie48

I watched Marketplace last night and it was about travel insurance, the stuff you buy when you take a trip to the USA so you don't lose your house if something goes wrong.

There are serious doubts as to whether the policies are worth the paper they're written on.

The hook is that if you lie or fail to reveal an answer to any question anywhere on the policy the policy is null and void even if the question is unrelated to the claim. One old guy had paid thousands for insurance and was glad he did because he had a heart attack while in the USA. They denied the claim because he had failed to mention having a common colon condition (Diverculosis sp). The colon condition had nothing to do with the heart attack. The old guy got a bill for $300K. He wasn't the only one.

Part 2 is the forms that have to be filled out. The travel agents selling the policies don't understand them and if they have any ethics at all, tell you to have your doctor to answer the questions for you. Hook number 2 is that the forms are written by lawyers and doctors are not lawyers so often can't grasp subtle meanings. IE Have you ever been treated for a heart condition? You answer no because you are in good health and your doctor, to be safe, gave you an ECG and you passed with flying colours. However the insurance company considers an ECG a treatment and you lied saying you didn't have any treatment. Claim denied for the appendix attack (Totally unrelated to the heart).

Of course the insurance company hid away in their ivory towers when asked to comment.

While this isn't directly about motorcycle insurance it might affect your next trip to the Gap.

Its a contract . If you omit, forget or hide information the contract isn't valid.

**nobbie48** · 03-10-2012, 02:58 PM

Originally Posted by sonnythebull

Its a contract . If you omit, forget or hide information the contract isn't valid.

I don't deny that but the contract is written with the deck stacked in favour of the insurance company due to legalese. Somewhere in your GM car manual it says to wash and wax it with GM cleaners and polish. If the engine blows up while driving along would you expect to be without a warrantee because you used Pledge?
Defining a test as a procedure is a joke.

**sonnythebull** · 03-10-2012, 03:36 PM

Originally Posted by nobbie48

I don't deny that but the contract is written with the deck stacked in favour of the insurance company due to legalese. Somewhere in your GM car manual it says to wash and wax it with GM cleaners and polish. If the engine blows up while driving along would you expect to be without a warrantee because you used Pledge?
Defining a test as a procedure is a joke.

Not a comparison at all

**invictus43** · 03-10-2012, 04:06 PM

I've had some family experience with travel insurance. It really pays to read and call your insurance company to ask specific questions about your travel insurance. I'm not an expert and I have only anecdotal evidence, but the insurance companies in all 4 claims I've heard about, immediately denied coverage. One paid because the insured person left the US hospital without paying and their lawyers contacted the insurance companies. In all the other cases, only about 30% of the costs were covered. I'm not saying they're right or wrong, I'd just be very careful about checking what your policy is covering and I wouldn't expect 100% of costs to be covered. They might be, but I'm a little afraid myself about what could happen.

**psycho44** · 03-12-2012, 08:18 AM

sounds the same with those extended warranty they try to sell you but won't honour them or make it a difficult process.

**Corey McNeely** · 03-16-2012, 04:37 PM

Another condition of your travel policy to confirm is whether or not your travel insurer pays the expense directly the the healthcare provider. Some insurance policies will only reimburse you after your have paid the expense, which can be extremely difficult to do. This could delay your treatment. Always review your policies.

**nobbie48** · 03-17-2012, 09:38 PM

Originally Posted by Corey McNeely

Another condition of your travel policy to confirm is whether or not your travel insurer pays the expense directly the the healthcare provider. Some insurance policies will only reimburse you after your have paid the expense, which can be extremely difficult to do. This could delay your treatment. Always review your policies.

I had lunch with a broker friend and he mentioned that the hospital / insurance business in the USA is no different than other buyer / seller relationships in that volume buyers get discount pricing. An insurance company may pay a quarter of the day rate for a hospital bed compared to a private patient.

The other point he made is that with auto insurance the policy isn't issued until after the underwriting is done and your abstract and history is checked. With travel health policies the underwriting isn't done unless there is a claim.

Strange business.