On making a claim on holiday insurance last year for about €150 or so (I was out that money and didn't really have it to spare,) I am convinced that the insurance company puts a huge burden on the claimant regarding paperwork, forms, photocopies, etc to put them off pursuing a claim.
The amount of documentary evidence I had to produce and the time involved in sourcing and preparing that was hardly worth the effort. Especially when the claim was denied - something I hotly dispute to this day.
But it still got me nowhere.
I worry if insurance companies dont pay out the small claims, what would they be like with a more serious claim, say if someone was in real trouble, like being hospitalised or in legal difficulty? I have little confidence in travel insurance.