The UK Insurance Blog

Received a press release this morning extolling the virtues of a new travel insurance product from a company named noclaimscashback.com. At first glance it seems a neat product, you pay for your travel insurance and then when you’re back home, provided that you haven’t made a claim, you get up to £10 of your money back. They compare it to the no claims discount that we get with motor insurance, whereas I tend to compare it with life insurance, you don’t get any refunds but you’re still alive !.

Anyhow, let’s take a closer look at the small print :-

• Single trips only – no annual policies
• Single person or couples only – no family groups
• Everybody has to be between 18 and 49 years of age
• No ski insurance available
• No insurance for people with pre-existing medical conditions

So, they’re cherry picking the very lowest risk travelers and are only offering single trip policies. We’ve always pointed out that the best value comes from annual policies, and that’s best value to you, the consumer, and thus lowest profit to the insurer.

Their pre-existing medical conditions clause of the policy isn’t awfully clear and I’d strongly advise anybody considering buying this particular policy to contact the company and double check if they are at all unsure. The relevant clause is

“The policy does not provide cover for any pre-existing medical condition. A medical condition is any medical condition which has been suffered or which is under review (routine or otherwise), or for which medication, advice or treatment has been received within the last 12 months (prior to the date your policy is issued). This includes long standing conditions as well as injuries.”

When I checked against a Churchill policy, Churchill restrict the medical condition to anything that caused you to be hospitalised within the last 12 months. There’s a big difference there. Also most companies will offer insurance (maybe restricted a little) to most people with pre-existing, long term medical conditions, it’s another instance of noclaimscashback  cherry picking the very safest clients.

My final thought on this policy is that it reminds me of the recent phone cashback scandal where people were promised their money back at the end of a one year term. The phone companies were expecting only a small percentage of customers to claim their money back. When something like 80% claimed their cash the company couldn’t pay and it left a very bad taste in the mouth. I’m not suggesting that there is any danger of noclaimscashback not returning money although I do worry that the terms for repayment are quite so strict in that you are offered up to £10 back provided that you claim it after one month and before two months of your return.

I’m sure that the policy will appeal to some people, myself I’m happy to get back from a holiday that went without incident or accident, travel insurance is money well spent and I hope to never have to make a claim.