Insurance Help

[RichmondCommu]

G'day everyone,

Just looking for advice / experiences. My eldest daughter and her boyfriend were due to go on holiday at the start of July but her boyfriends dad has been diagnosed with cancer and has been given 6 weeks to live.

Not surprisingly the holiday has been cancelled but my daughters insurer has said that she cannot claim the cost of her holiday. Now at a time like this the money is irrelevant and the Bank Of Mum And Dad will cover the cost but nevertheless I think this is rather harsh given the circumstances.

Your thoughts / advice would be very welcome.

Kind regards,

Richmond Commuter!

 

[najaB]

Your thoughts / advice would be very welcome.

While a bit harsh, I think the insurance company is likely within their rights. In my experience, the sickness clause normally applies to a travelling companion, an immediate relative of the insured or someone who you intend to stay with.

The father of a friend (if your daughter and boyfriend aren't yet living together) might well be too 'distant' to count. If it is a joint policy then maybe they have a case?

 

[Domh245]

First and foremost, condolences to your daughter, her boyfriend, and his family, and I hope they can enjoy the time they have together.

As usual, the devil will be in the detail of the agreement, so as najaB says, the insurance company could be well within their rights to refuse to pay out. That said, depending on how the holiday was booked, it may be possible to talk directly to airlines/hotels about the situation. They may be willing to reimburse them - I've heard stories about easyjet refunding flights for a couple who'd just lost a father in law.

 

[tony_mac]

I'm sorry to hear about that - it's sad that they also have to deal with this.

If they are living together, and the policy covers a 'parent-in-law' (they usually do) then I think it should be covered.
If they are not living together, then I doubt it would count as an immediate family member.
It may also be worth contacting the holiday company directly, they may be willing to refund, or offer future credit, in these circumstances.

 

[swj99]

Sorry to hear this.

In practical terms, you'd have to read the wording of the policy document to see what can be claimed for and what can't. Any grey areas, ask the insurer to settle anyway, and follow up with a referral to the financial ombudsman service if you think it's a valid claim but they don't pay. It's free for claimants and you've nothing to lose.

 

[RichmondCommu]

Many thanks for all of your advice. My daughter and her boyfriend are not living together but we're going to contact the holiday company and see what they say. Failing that we'll write to the ombudsman and wait and see what happens. Thanks again.

 

[Peter Mugridge]

There is a similar case described in Moneywise Magazine this month*; in that instance it was a non-travelling sister who became ill and it was EasyJet involved.

They paid up, albeit in vouchers, after the magazine put pressure on them. Might be worth your while getting a copy of the magazine and showing the article to your insurers.


*June issue, page 27 - virtually the whole page.

 

[Tetchytyke]

Were the two holidays made as one booking, or as two? If it is one booking, then if one person doesn't go then often both people cannot. The cancellation fee would be the same.

It'll also depend on whether your daughter and her partner are co-habiting, and whether they were both on the travel insurance policy.

It does seem harsh. I would write back to the insurance company and make it very clear that your daughter will take the matter to the Financial Ombudsman Service if an amicable resolution cannot be reached. Even if your daughter doesn't win at FOS- and they tend to take a fairly common sense rather than overly legalistic approach- it will cost the insurance company at least £500+VAT for FOS to adjudicate on the case. That FOS fee can give your daughter leverage (although she must NOT make reference to it in any way shape or form, it is just an unspoken leverage).

 

[richw]

Were the two holidays made as one booking, or as two? If it is one booking, then if one person doesn't go then often both people cannot. The cancellation fee would be the same.

It'll also depend on whether your daughter and her partner are co-habiting, and whether they were both on the travel insurance policy.

It does seem harsh. I would write back to the insurance company and make it very clear that your daughter will take the matter to the Financial Ombudsman Service if an amicable resolution cannot be reached. Even if your daughter doesn't win at FOS- and they tend to take a fairly common sense rather than overly legalistic approach- it will cost the insurance company at least £500+VAT for FOS to adjudicate on the case. That FOS fee can give your daughter leverage (although she must NOT make reference to it in any way shape or form, it is just an unspoken leverage).

£500 + vat is better than paying a more expensive holiday back. Some may take that approach if they know they're right. The firm I worked for would rather pay FOS £500, than consumer say £2000, if we were in the right.

It all depends on the wording and exclusions of the policy, hard to comment exactly.
When I was in similar position the tour operator gave us vouchers of 75% of the holiday value. Girlfriend's (not living together, now wife) mother was diagnosed terminal cancer. She actually died the date we were due to fly out.

 

[Tetchytyke]

The firm I worked for would rather pay FOS £500, than consumer say £2000, if we were in the right.

Of course, the threat of a £500 adjudication fee isn't going to have as much leverage with a £40,000 claim as a £400 one. But if the underwriter know they're just trying it on a bit, then it can sometimes do the trick.

It depends on the policy wording, it depends on how clear the wording is. Mine covers "parent in-law", but doesn't define how they are defining this. And it depends on the insurer. Many of the budget travel insurers are cheap for a reason...

 

[alxndr]

I also agree with the suggestion to talk to the airline/holiday company directly as well as with insurer. A slightly different scenario, but my grandfather passed away earlier this year, and my grandmother had flights booked (for her alone) to visit family a couple of months later. The airline was happy to postpone her trip for up to a year for no extra fee.

 

[AlterEgo]

I think speaking to the airline may yield some results, assuming it was booked directly. FlyerTalk has reports of varying success with various airlines so it certainly isn't a "hard" no, but results may vary. Good luck.