What to do if your travel insurance claim is rejected

Having your travel insurance claim rejected is one of the most frustrating experiences a traveller can face. You paid for cover, something went wrong, and now the insurer is refusing to pay. It feels final — but in many cases, it is not.

Insurers do not always get these decisions right. Claims are sometimes declined on grounds that do not hold up to scrutiny, or because of technicalities the policyholder was not clearly warned about. There is a well-established process in the UK for challenging a rejected claim, and you have more options than you might think.

This guide walks through the most common reasons a travel insurance claim gets refused, the exact steps to take when you want to appeal, how the Financial Ombudsman Service travel insurance process works, and — crucially — whether an EC261 flight delay claim might give you a faster, simpler route to compensation if your disruption involved a flight.

Why travel insurance claims get rejected

Before you can challenge a decision, it helps to understand why insurers reject claims in the first place. The most common reasons fall into a handful of categories.

Policy exclusions

Every travel insurance policy has a list of exclusions — situations it will not cover. These are usually buried in the small print, which is precisely the problem. Common exclusions include pre-existing medical conditions that were not declared at the time of purchase, travel to destinations the Foreign, Commonwealth and Development Office (FCDO) has advised against, activities classed as hazardous sports, and incidents related to alcohol consumption. If your claim touches on any of these, an insurer may reject it outright.

Failure to declare a pre-existing condition

This is one of the most frequent causes of a travel insurance claim rejected. If you have an existing health condition that contributed to the incident you are claiming for — and you did not disclose it when taking out the policy — the insurer has grounds to decline. This applies even if you thought the condition was minor or well-managed. Always disclose, even when in doubt.

Not following the claims procedure

Most policies require you to report incidents within a specific timeframe, contact the insurer before seeking treatment abroad, or obtain documentation such as a police report for theft within 24 hours. Failing to follow these steps can give an insurer grounds to reduce or refuse your payout, even when the underlying incident is clearly covered.

Insufficient evidence

Claims without supporting documentation are frequently declined or reduced. Insurers need receipts, medical certificates, police reports, booking confirmation, or official correspondence from airlines to process and validate a claim. If you cannot evidence what happened, you may struggle to succeed on appeal too — so documentation is everything.

Policy excess and limits

Sometimes a claim is not rejected outright, but the insurer only pays a fraction of what was claimed. This happens when your loss falls within the policy excess — the amount you are responsible for regardless — or when the amount claimed exceeds the policy limit for that type of loss. Carefully read the original rejection letter to understand exactly which part of the claim was declined and on what basis.

Step-by-step: how to appeal a rejected travel insurance claim

1.    Read the rejection letter carefully. Understand the exact reason given. Is it a policy exclusion, a procedural failure, a lack of evidence, or something else? The reason determines your approach.

2.    Re-read your policy wording. Compare the rejection reason against the actual policy document. Insurers sometimes apply exclusions too broadly, or misinterpret the terms. If the policy wording does not support the rejection, say so in writing.

3.    Gather additional evidence. If the rejection was based on insufficient documentation, collect what is missing — medical records, police reports, official delay confirmation from the airline, receipts for expenses. Then resubmit your claim with the additional supporting material.

4.    Write a formal complaint to the insurer. Put your appeal in writing. State clearly why you believe the rejection was incorrect, reference the specific policy terms you are relying on, and include copies (not originals) of all supporting documents. Keep a copy of everything you send.

5.    Allow up to eight weeks for a response. UK insurers regulated by the Financial Conduct Authority (FCA) must handle complaints within a set timeframe. If they do not respond or you are not satisfied, you have the right to escalate.

How to escalate to the Financial Ombudsman Service

If your insurer's final written response does not resolve your complaint, or they fail to respond within eight weeks, you can take your case to the Financial Ombudsman Service. Financial Ombudsman Service travel insurance complaints are free to submit, and the service is independent of both you and your insurer.

Here is how the process works:

• You must have already gone through your insurer's own complaints process before the FOS will accept your case.
• You have six months from the date of the insurer's final written response to refer the complaint to the FOS.
• The FOS will investigate and make a binding decision — binding on the insurer, but not on you. If you disagree with the FOS outcome, you can still pursue the matter in court.
• The service handles thousands of travel insurance disputes each year. Outcomes vary, but the FOS regularly overturns insurer decisions where the rejection was applied too broadly or the policy wording was unclear.

The strength of your Financial Ombudsman Service travel insurance case will depend heavily on documentation. Everything you submitted to the insurer, the insurer's reasons for rejection, and any expert evidence (such as a doctor's letter or official delay records) will form the basis of the investigation.

You can access the Financial Ombudsman Service complaints portal directly online. The FOS is a free, independent service for consumers and does not charge you to submit a case.

When EC261 is a faster route to compensation

If your travel insurance claim rejected situation arose from a flight delay, cancellation, or denied boarding, there is a parallel route worth considering: an EC261 flight delay claim against the airline.

EC261 is a separate legal right that exists completely independently of your insurance policy. It does not matter whether your insurer accepted or rejected your claim. If your flight was delayed by more than three hours arriving at your destination, and the cause was within the airline's control, you have a statutory right to fixed compensation — up to £520 per person.

The key practical difference between EC261 and travel insurance is this: EC261 pays a flat sum for the disruption itself. It does not reimburse specific losses; it compensates you for the inconvenience and delay, regardless of what you actually spent. Your insurer rejecting a claim for delay expenses does not affect your EC261 entitlement in any way.

When EC261 applies

• Your flight departed from any UK or EU airport, or arrived at a UK or EU airport on a UK or EU carrier
• You arrived at your final destination more than three hours late
• The delay was within the airline's control — not caused by extraordinary circumstances such as extreme weather or air traffic control strikes
• The flight was within the last six years

Our guide to making a flight delay claim sets out the eligibility rules in full and explains exactly what you can claim and how much. If your disruption involved a cancelled flight, our cancelled flight compensation guide covers the specific rules that apply in that situation.

What if neither insurance nor EC261 resolves your situation?

If both your travel insurance claim rejected appeal and any EC261 flight delay claim have run their course, there are still options left.

If you booked your trip using a credit card and the total cost was between £100 and £30,000, you may be able to make a Section 75 claim against your credit card provider. Under the Consumer Credit Act 1974, your credit card company is jointly liable with the supplier for the service you paid for. If the supplier — a holiday company, airline or hotel — failed to deliver what was promised, your card provider may be obliged to reimburse you.

If you paid by debit card or the amount falls outside the Section 75 threshold, a chargeback request through your bank may be possible, though this is not a legal right in the same way and success is not guaranteed.

As a last resort, small claims court is available for lower-value disputes with UK-based companies. The process is straightforward and does not require a solicitor, though it does take time and involves some upfront court fees which are recoverable if you win.

How to protect yourself from future rejected claims

The most common causes of a rejected travel insurance claim are entirely avoidable with a little preparation before you travel.

• Read your policy before you go — not after something has gone wrong. Pay particular attention to the exclusions section and the claims procedure.
• Declare all pre-existing medical conditions, even if you think they are unlikely to cause problems. The cost of adding cover is almost always less than the cost of a rejected claim.
• Keep every piece of documentation from the moment an incident occurs — receipts, medical records, police crime reference numbers, airline delay certificates, and photographs.
• Report incidents to your insurer within the timeframe specified in your policy. Do not wait until you are home if the policy requires earlier notification.
• Check FCDO travel advice for your destination before you go. Travelling against official advice typically invalidates your cover entirely.

For further information about your rights on flight disruption specifically, our frequently asked questions about flight delay claims covers the most common passenger queries, including what qualifies as extraordinary circumstances and how long a claim typically takes.