2 Travel insurance policies to increase limit on Pre-existing conditions

[deejo77]

Hi

With Covermore changing their policies and not willing to cover for my dad's pre-existing condition I am on merry go round of insurance companies.

I have located two that will cover pre-existing - one for $100,000 and the other for $50,000.

I have just rang the $50,000 one and asked if there is anything in their terms or conditions about having multiple policies for the same issue (sort of like a credit card insurance and a normal policy). Was advised that if the two insurance companies find out about each other there would be what I would like to term a "**** fight" over who should pay what and that they might even lower the above limits (So policy may not be worth the paper it is written on). There is nothing in any of their documentation that he could refer me to. Has anyone been in a similar situation? I know recently when my mum had to claim one of the first questions were did you pay for the trip on a credit card and if so who was it through and does it have an insurance policy on it. I really don't want to get into a fight with two insurance companies who both refuse to pay if they feel the other party should be paying - leaving me stuck in the middle.

Thanks for any assistance

D

 

[serfty]

Standard underwriter practice - it's umbrellared under the term "Shared Risk".

Simple example - You and the insurer share the risk: e.g. Insure a dwelling for significantly less than it's actual value then if said dwelling gets demolished in an insured event, you receive a pro-rata'd payout based on the insured versus actual value. (e.g. your $250,000 building insured for $200,000 burns down - the underwriter deems that you took 20% of the risk, so will only pay out $160,000.)

With the TA example, say you have a claim under those $50,000 and $100,000 limits of $10,000, neither will pay out the full $10,000 if they are aware of each other covering the insured event.

 

[RB]

I also believe that you are up against standard underwriting conditions. I think you will find that there are many situations where any payments received will be offset against policy limits

 

[deejo77]

Thanks for the quick reply..........looks like the $100,000 policy wins out