£10 million travel insurance policy leaves widow with £2,500 bill

The limitations of travel insurance have been highlighted by a case in which a grieving widow was forced to pay out thousands, despite having £10 million of cover.

Marian and Stephen Mortimer were on the holiday of a lifetime in South America and were just about to visit Machu Picchu when Stephen, 68, collapsed and was rushed to hospital.

He was found to be suffering from altitude sickness, causing fluid to build up in his lungs and trigger heart failure; he died a few hours later.

The couple had bought insurance for the trip from Avanti, paying around £150 for a policy that offered £10 million of sickness cover.

However, when Marian contacted the company to arrange for her husband's body to be flown home, she was told that her policy only covered repatriation costs up to £5,000. With a total bill of £7,500, she was forced to pay the difference herself.

"We saw we had plenty of cover if we fell ill and that repatriation costs were included, so we felt confident that we were sufficiently protected," Marian tells the Daily Mail.

"If they would have covered the cost of bringing Stephen home if he had just fallen ill, why not do the same when he died?"

Sadly, it's not unusual to be left high and dry by an insurance policy.

"Insurance is only any good if it pays out when you need it. If something unexpected happens to spoil your trip – such as your flight being cancelled or you needing hospital treatment – then the last thing you want is to have your insurance claim rejected," says Alex Edwards from Gocompare.com Travel Insurance.

"Getting the right insurance policy - one that covers both you and your holiday plans - is essential. Make sure you read the policy wording so you understand what is and what isn't covered. Be honest when applying for cover and when submitting a claim."

So what should you look out for?

Make sure everything's covered
Not all policies cover lost or delayed luggage - and of those that do, cover and excess levels vary enormously. If you plan to travel with valuable items such as cameras, iPads, expensive jewellery or watches) check the policy limits to make sure you're fully insured - and check out the excess, too.

Buy the right policy for your holiday
Many travel insurance policies don't cover adventurous activities - and may have their own definition of what these are. Some may allow cycling, for example, but require you to wear a helmet. Read the definitions carefully.

You may also find your policy is invalid if you've had too much to drink or engaged in 'reckless behaviour'.

Declare pre-existing medical conditions
Be honest about any pre-existing medical conditions - including mental, nervous or emotional disorders - even if they're mild and under control. If you fall ill with a related illness without having declared it in advance, there's a good chance your claim will be rejected.

Take care
Your claim can be rejected if the insurer thinks you're partly to blame - by leaving a camera lying around, for example, or failing to get recommended jabs. You will probably also be required to report a theft to police within 24 hours.