Poor communication or basic misunderstanding about the coverage details of travel insurance policies is leading to an increase in insurance disputes, according to a new data analysis by Hong Kong-based insurance comparison platform 10Life.
Hong Kong is currently experiencing a surge in outbound travel, which is being matched by a rise in disputes based on travellers’ expectations and policy wording. The data analysis has revealed that customers are experiencing claim rejections across several high-risk categories.
The research report released on 12 February by 10Life says that many disputes stem from basic misunderstandings of coverage, particularly involving cruises, road trips and complex cancellation clauses. The recent analysis by 10Life shows a growing rift between what travellers think they bought and what their policies actually cover.
The data suggests that a large proportion of disputes are born from simple misunderstandings, with the most significant risks lurking in cruise packages, road trips, and complex cancellation clauses.
According to the study, cruises and multi-destination itineraries have become major blind spots. A growing number of rejected claims relates to travellers failing to purchase dedicated cruise extensions. Without these endorsements, higher-cost risks such as onboard medical treatment or itinerary disruption may fall outside standard cover.
Self-drive holidays also present similar issues. While awareness of exclusions such as winter driving has improved, confusion persists around the distinction between financial loss and loss of enjoyment. Insurers typically exclude compensation for disrupted experiences, such as missing an attraction due to weather, but may cover additional accommodation costs triggered by the same event, depending on policy wording.
Lost or stolen belongings remain one of the most common claim categories, yet policyholders frequently misunderstand valuation rules. The research found most policies settle claims based on depreciated value rather than original purchase price, with sub-limits for high-value electronics further reducing payouts.
Documentation failures also undermine claims success. Missing police reports, incomplete receipts or failure to first pursue compensation from airlines for baggage damage often result in declined claims. In many cases, baggage delay benefits apply only to outbound journeys, another detail travellers overlook.
Even specialised Cancel For Any Reason (CFAR) policies now come with heavy strings attached. These plans usually require the customers to buy the insurance within a tight window—such as 7 days—of making the first trip deposit. Crucially, they rarely offer a 100% refund, usually only returning a fixed percentage of the prepaid costs.
10Life’s data shows that over half of their users are now looking past the cheapest premiums to compare medical limits, property caps, and cancellation fine print. It is a clear sign that travellers are becoming more sophisticated and demand transparency over marketing fluff. 10Life concludes that for the market to grow healthily, insurers need to place greater emphasis on policy clarity and transparency in claims processes, especially regarding newer product features like CFAR coverage.