For these reasons consumers have been urged to check holiday insurance policies very carefully to ensure it covers their needs.
This comes as the latest review from the Financial Services Ombudsman shows it received more than 300 complaints in last year on travel insurance.
Consumers have also been warned by the National Consumer Agency (NCA) that insurers have a time limit for submitting claims and a claim could be refused if the consumer doesn’t send it in on time or with the right paper work.
Chief executive of the NCA Ann Fitzgerald said: “When we book our holiday we look forward to a well-deserved rest and enjoying some time with family and friends. Few of us want to spend time thinking of the risks of something going wrong. Becoming ill, having an accident, losing possessions or suffering flight cancellations.
“Travel insurance is meant to provide some measure of compensation and protection when things do go wrong, yet it is clear that people need to be careful when they are buying travel insurance products.
“Not having the right cover can cost a lot of time, money and stress if something goes wrong. It’s as important to know how to make a claim as it is to know what you are covered for.”
Consumers have also been told to check any existing policies, especially health or home insurance in case they are covered for going on holiday.
Also they have been urged to disclose any pre-existing medical conditions so insurers can confirm their policy will cover any emergency treatment that might be needed abroad.
Irish Brokers Association chief executive Ciaran Phelan said “the cost of cover should not be the singular factor in deciding on travel insurance policy and it is important the cover chosen is comprehensive and suited to an individuals particular needs”.