A travel policyholder who had to cut short a holiday to be with his dying sister-in-law has lost his bid for a payout.

The man bought the policy before the family trip to the US from December 12 2023.

A day into the holiday, the insured was told his sister-in-law, who had metastatic colorectal cancer, was severely ill. He returned home, and she died a few days later.  

The policyholder resumed the trip about December 23.

Insurer AWP Australia denied liability, saying its policy did not cover claims arising from a relative’s pre-existing medical conditions.  

The insurer noted the woman had cancer and a pulmonary embolism for at least 11 months before her death, and before the policy took effect.  

It said the policy’s early return and resumption of journey cover was not applicable, because the sister-in-law had not been diagnosed while the man was on his trip.  

The claimant said the decision was unfair because the policy had not made it clear he had to declare family members’ medical conditions.

He said he suffered severe financial hardship because of the claim denial.  

But, in a dispute ruling, the Australian Financial Complaints Authority accepts the policy excluded claims arising from the pre-existing medical conditions of a relative.  

“I acknowledge the complainant was not aware that [his sister-in-law] may fall seriously ill and pass away when he commenced his holiday,” the authority’s ombudsman said.

“However, I am satisfied the exchanged information shows [her] death was caused by her pre-existing medical conditions for the purposes of the policy.

“In the absence of any other information, I am satisfied the insurer is entitled to deny the claim.”  

Click here for the ruling.