A man who cancelled his international holiday following the death of his father-in-law has lost a bid to overturn his insurer’s application of a policy exclusion. 

The policyholder and his wife were scheduled to travel in October last year but called off the trip in September. 

He lodged a claim to cover cancellation costs totalling $15,110, which was more than the $10,000 sum insured by the travel policy. 

Insurer AWP declined the claim on the basis its policy did not cover losses caused by death, injury or illness to anyone aged 85 or older. The father-in-law was 97. 

The complainant argued he did not postpone the trip due to the death or funeral arrangements, but rather his wife’s mental health, which had deteriorated.

The Australian Financial Complaints Authority, in its ruling on the case, says even if the claim was accepted, the cover would have been limited to $10,000. 

It acknowledges the man’s argument but says his wife’s mental health was affected by her father’s death, and this was the reason the trip was cancelled. 

“I am satisfied it is reasonable to accept that but for the passing of the complainant’s father-in-law, his wife’s mental state would not have been so poor as to concern the complainant, and which led to his decision to cancel their pre-paid travel arrangements,” the authority’s adjudicator said. 

The authority says its decision is backed by “available medical information provided by the complainant, which refers to his wife needing time to grieve, being distraught from grief, and cultural practices requiring 40 days of grieving”. 

It says the insurer’s “assessment of liability under the policy is consistent with the policy provisions, and it is entitled to decline the complainant’s claim”. 

Click here for the ruling.