A Tekapo woman has found herself $10,000 out of pocket because of her insurance company's definition of 'relative'.
Natalia Zuleta used the complimentary travel insurance that came with her Westpac credit card when booking a trip to Australia for her family of four.
Forty-eight hours before the family were due to leave on the trip, they cancelled it because Zuleta's UK-based mother-in-law was diagnosed as gravely ill.
"When we realised that things were serious, we decided that we had no other option but to cancel our holiday and be by her side," she told Fair Go.
The trip to the UK lasted months and ended in a funeral.
When Zuleta put her claim in for the cancelled flights and accommodation to Australia she was confident it would be accepted. However, Westpac insurance provider AIG denied her claim.
The policy's definition of relative didn't include her mother-in-law because she didn't live in Australia or New Zealand.
"And that was a clause on page 24 of their policy document which obviously I hadn't read. We cancelled everything to be by a family member's side. It's irrelevant where they are located," Zuleta said.
And it turns out this is not uncommon. Most other major banks' travel insurance policies define a relative as a close family member (including through marriage) who are resident in New Zealand. ANZ is the only major bank to not have this condition in its credit card travel insurance policy.
Following inquiries from Fair Go, Westpac offered Zuleta a compassionate payment of $10,000.
She was also asked to sign a non-disclosure agreement, which she refused because she wanted to warn others that this condition could be in their policies too.
"The support we provide our customers varies depending on their circumstances. In some cases, this may involve a confidentiality agreement," Westpac explained.
"We encourage customers to carefully read the terms and conditions to understand what they're covered for," it added.
Regardless, an email arrived from Westpac while Fair Go was filming.
"As a gesture of goodwill and to acknowledge the difficult service experience you has with one of our product suppliers, we would like to extend the amount of ten thousand dollars in full and final settlement of this matter with Westpac."
Zuleta said she is relieved she can now take that long-awaited family holiday. She said despite what her insurance company says, her definition of family remains.
"To me family's family."
SHARE ME