'Bank scraps travel cover – and we risk losing £5,000 cost of our holiday'

'Bank scraps travel cover – and we risk losing £5,000 cost of our holiday'

Holders of a Citibank premium current account will lose their worldwide travel insurance tonight. Currently anyone with a Citi Plus current account automatically qualifies for the cover. But the bank has written to customers to say that their policy will lapse at midnight tonight.

Those who have already begun a holiday, or who have already submitted a claim, will be unaffected by the change. But customers who are due to leave tomorrow or later have been told they will need to arrange cover elsewhere.

The bank said it had written to customers affected late last year and had emailed a reminder this month. 

” I am writing to remind you that we will no longer provide travel insurance with your account from 13 January 2018,” the email said. “It is important you make other arrangements if you wish to have travel insurance after this date.

“If you are already on holiday on or before 12 January 2018, your cover will end immediately upon your return. For holidays taken on or before 12 January 2018, there is no cut-off date for when claims need to be submitted. The withdrawal of your travel insurance from 13 January 2018 will have no bearing on any existing claim.”   

But one reader contacted Telegraph Money to say that he had not been informed of the change until 10 days ago and that he risked losing the £5,000 cost of a family holiday to Gambia later this month because his daughter’s medical condition might require him to cancel and he would not be able to arrange equivalent new cover because the illness would have to be disclosed to a new insurer.

“We are due to go on holiday on Jan 26 to celebrate a significant birthday for my wife but my daughter had an operation recently and may not be fit enough to allow us to travel then,” said Ron Emler, a retired journalist from south London.

“I could buy a new policy elsewhere but it wouldn’t cover cancellation caused by my daughter’s condition because the condition would now count as pre-existing, whereas she would have been covered by Citi because the holiday was booked before her condition emerged.”

He added: “I could cancel my holiday today and claim on the Citi cover just before it expires, but I don’t know yet that my daughter won’t be fit to travel.”

He said he had not received a letter from Citi last year to advise him of the change and that the first he had heard of the withdrawal of cover had been when he received the email on Jan 5.

“We had just eight days’ notice of this and we now feel trapped: we have to choose between cancelling the holiday today in order to make a claim on the Citi policy, which may not be accepted because we can’t be sure that my daughter’s condition will prevent us travelling, or crossing our fingers that she will be well enough and arranging new cover – but that won’t pay if we do have to cancel because of her condition as it will be pre-existing.”

Customers with Citigold accounts are not affected.

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