Warning about BNZ Credit Card travel insurance (through Cigna)

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myfullflavour

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#237870 21-Jun-2018 15:55

A quick off-topic post in a personal capacity...

I had a kiteboarding accident last month so wanted to cancel an upcoming trip which was covered by my BNZ credit card travel insurance (they use Cigna as the provider).

Today I found out Cigna has denied the claim - they consider kiteboarding an extreme sport so you're not covered.

So if you play sport and have an upcoming trip, it probably pays to check with your insurance provider that they cover your particular sport.

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#2041786 21-Jun-2018 16:10

In case anyone else has a BNZ card, here is cigna's T+Cs

https://www.cigna.co.nz/sites/default/files/policies/Cigna%20Travel%20Insurance%20Policy.pdf

The list of Hazardous Activities is on page 18

RunningMan

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#2041788 21-Jun-2018 16:12

Hope you're on the mend!

myfullflavour

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#2041791 21-Jun-2018 16:14

RunningMan:
Hope you're on the mend!

Slowly getting there.

Worth noting that the BNZ Cigna policy is watered down compared to what other providers offer as standard (e.g. 1Cover, who seemed to be quite proactive marketing their services lately?)

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#2041793 21-Jun-2018 16:15

Good advice. I just checked my Kiwibank Mastercard freebie insurance and it similarly excludes the following, some are clear and some are ambiguous. What constitutes extreme? What is a 'remote area'? Training to race snails?

- Any professional sporting activity;

- Deliberate exposure to exceptional danger except in an attempt
to save human life;

- Extreme versions of any sport;

- Mountaineering or rock climbing necessitating the use
of ropes;

- Or occurring during any international ocean voyage (whether
or not you have actually entered international waters) or more
than 25 nautical miles from the mainland except as a fare
paying passenger on a licensed cruise ship;
17

- Or occurring in remote areas except as part of an
organised tour;

- Parachuting, hang or tow gliding, microlite flying, sky diving,
paragliding and/or parasailing;

- Pot holing, bungy jumping, rodeo activities, polo or hunting;

- Training, competing or racing other than on foot;

- Underwater activities involving the use of artificial breathing
apparatus unless you hold an internationally recognised
diving qualification;

- White water activities;

MileHighKiwi

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#2041803 21-Jun-2018 16:26

The title should probably be ~~Warning about BNZ Credit Card~~ read your travel insurance policy ~~(through Cigna)~~

mdooher

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#2041808 21-Jun-2018 16:32

kryptonjohn:

Good advice. I just checked my Kiwibank Mastercard freebie insurance and it similarly excludes the following, some are clear and some are ambiguous. What constitutes extreme? What is a 'remote area'? Training to race snails?

- Any professional sporting activity;

- Deliberate exposure to exceptional danger except in an attempt
to save human life;

- Extreme versions of any sport;

- Mountaineering or rock climbing necessitating the use
of ropes;

- Or occurring during any international ocean voyage (whether
or not you have actually entered international waters) or more
than 25 nautical miles from the mainland except as a fare
paying passenger on a licensed cruise ship;
17

- Or occurring in remote areas except as part of an
organised tour;

- Parachuting, hang or tow gliding, microlite flying, sky diving,
paragliding and/or parasailing;

- Pot holing, bungy jumping, rodeo activities, polo or hunting;

- Training, competing or racing other than on foot;

- Underwater activities involving the use of artificial breathing
apparatus unless you hold an internationally recognised
diving qualification;

- White water activities;

So having any kind of life then?

Matthew

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sbiddle

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#2041810 21-Jun-2018 16:34

I would never take out or rely on any travel insurance policy without fully understanding what it does and doesn't cover.

Most credit card policies are watered down in one way or another compared to an off the shelf policy. ANZ's glaring lack of rental car cover (despite saying they have cover the T&C excludes it in most circumstances) it also another catch to be aware of.

I personally have an annual 1cover worldwide policy, the benefit of this being I also have cover inside NZ when away from home.

kryptonjohn

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#2041811 21-Jun-2018 16:37

... and 1cover does cover a lot of stuff, *including* kite boarding!

Delphinus

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#2041812 21-Jun-2018 16:38

I realised those sort of sports were not covered while ON holiday. But I didn't realise that cancellation cover was void if you partake in those activities before you leave on holiday.

Bibbidybob

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#2041842 21-Jun-2018 16:50

This is an interesting one! At a first read it does seem like your claim should be excluded - like you say, it's a pretty watered down policy. The wording of it is hugely broad with regards to exclusions:

We will not pay a claim that was directly or indirectly caused by:

...

Participation in Hazardous Activities

...

Hazardous Activities means any of the below, but not limited to:

...

Not Covered

...

Kite Surfing

So I can see why they declined it. If you were inclined to take the matter further (and to be honest I think it's worth a shot, but a low chance of success) I would complain on the basis that the third part of the policy written about should be read in its full context:

Hazardous Activities means any of the below, but not limited to:
The purpose of this list is to capture the most common activities undertaken during a Trip

Where Trip is defined as:

Trip means Your time away from New Zealand. This period starts
when You leave Your home in New Zealand and ends when You
arrive back in New Zealand. .

At the very least there's some ambiguity here because Hazardous Activity clearly is defined within the context of your Trip, and you weren't on your Trip. They should put you through their internal complaints process, and if that doesn't resolve it provide you with a letter of Deadlock and the details of the Insurance and Financial Services Ombudsman (as an aside, that policy document is incorrect, it references the ISO. ISO changed to IFSO in like 2015...). Depending on the value of the claim they may just pay out or make an ex gratia settlement, or you can go to the IFSO if they don't - it's a free process. Like I said earlier, not a super high chance of success just because of how broadly it's worded, but in your position I would try at least.

sbiddle

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#2041846 21-Jun-2018 16:53

Actually after reading (admittedly skimming) through that Cinga document I would be under the expectation that I you would be covered under the circumstances.

You are not claiming for cover for an hazardous activity that's excluded in the policy while on the trip. You are claiming under one clause relating to travel before your trip when you are in NZ and technically the policy and exclusions do not apply.

• serious Injury or Illness to You or Your Travelling Companion(s).
The condition suffered must mean You or Your Travelling
Companion is not medically fit to travel

If you're unhappy with their ruling you can ask the insurance ombudsman to look into it.

This is actually a very interesting scenario to ask any insurance company. I'd be interested to see what any other company has to say about it.

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Stu

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#2041889 21-Jun-2018 19:07

If I was in to anything "extreme", I wouldn't assume a 'free' policy would have my butt covered. Actually, I'd be checking the paid stuff as well. That kind of activity usually affects regular health and life insurance too. We all know they'll use any excuse to get out of paying out.

And always talk to them directly if you're in doubt over any part of the policy.

People often mistake me for an adult because of my age.

Keep calm, and carry on posting.

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sbiddle

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#2041891 21-Jun-2018 19:10

Stu: If I was in to anything "extreme", I wouldn't assume a 'free' policy would have my butt covered. Actually, I'd be checking the paid stuff as well. That kind of activity usually affects regular health and life insurance too. We all know they'll use any excuse to get out of paying up.

That's all fine if you're relying on the policy for travel, but in this case the incident being claimed for was not the "extreme" activity.

myfullflavour

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#2041892 21-Jun-2018 19:12

Compare 1000 hours of cycling vs 1000 hours of kiting - I betcha you’ll see more accidents from cycling.

Maybe not so extreme after all?

In kiting if you are properly trained you become good at identifying and managing associated risks, which raises the safety level.

Stu

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#2041895 21-Jun-2018 19:18

sbiddle: That's all fine if you're relying on the policy for travel, but in this case the incident being claimed for was not the "extreme" activity.

No arguments from me there Steve. My statement still stands in regards to relying on (specifically) free cover. You said yourself that they're watered down policies, and that also means exclusions where you might expect inclusions. I question them over anything they might use as an excuse to dodge responsibility (both free and paid cover). I don't usually need any more than the "free" cover, but there are exceptions.

People often mistake me for an adult because of my age.

Keep calm, and carry on posting.

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