Insurance Company wont reimburse for policy taken out that has not started

dazza.mk

vaio wrote: »

Not being rude but you REALLY don’t understand either, there was no holiday therefore the entire policy/contact is impossible to perform and so void and should be refunded.

Google contract law “common mistake” for more info.

I don't think you do, he is covered for a holiday for one person starting in 2 weeks and lasting for 2 weeks. I doubt he is only covered for that specific holiday and could potentially rebook a new holiday across the same timeframes and be covered (within the limits of the insurance policy).

So how does the error in the first booking frustrate the contract re: the insurance (which was potentially taken out with another provider)?

.... On the same basis if you were to take out an Annual Travel Insurance policy and then fail to travel during the year you would be suggesting that the Insurance company should refund you?

vaio

The idea of “common mistake” is that when the contact was entered into both parties believed that the holiday existed. In reality it didn’t and so the contract can’t be performed & is void.

Having said that, holiday insurance is not something I’ve ever bothered taking out but I assume a single trip two week policy would cover a defined holiday departing on such & such a date , going to a specific place and returning on a given date.

I’d also have thought that the cost of the holiday would form part of the premium.

However, if I’m wrong then wouldn’t the policy cover the additional cost of booking an alternative given the unavailability of the intended one?

lisyloo

would cover a defined holiday departing on such & such a date , going to a specific place and returning on a given date.

You normally provide the dates of cover.
You do not normally specify place although you do have to specifiy if it's europe or worldwide.
Most people would purchase it with a specific holiday in mind and in practice the dates would tie you into a specific holiday, but it's doesn't look to me that's it for a defined holiday - only dates and zone are defined.

I’d also have thought that the cost of the holiday would form part of the premium.

No, polcies tend to have standard limits. You can chose a budget or premium one.
So you wouldn't buy one with only £1K cancellation cover for a £5K holiday.
They are not individual like car insurance, they are "off-the shelf" packages, in some cases literally.

However, if I’m wrong then wouldn’t the policy cover the additional cost of booking an alternative given the unavailability of the intended one?

No they don't cover unavailability of future holidays.
They cover cancellation, delays, medical, repatriation, lost baggage etc.

This is rather unfortunate, but the answer is not to buy the insurance until the booking is confirmed (and try not to break your leg or die in between getting the booking conformation and insurance :-) OR get an annual policy.

Having said that, holiday insurance is not something I’ve ever bothered taking out

I'm sure you've thought it through, but repatriation costs and medical costs can be large.

lisyloo

Google contract law “common mistake” for more info.

I have done.

The House of Lords case of Bell v Lever Brothers Ltd.[Case 8] established that common mistake can void a contract only if the mistake of the subject-matter was sufficiently fundamental to render its identity different from what was contracted, making the performance of the contract impossible.

Is it impossible for the insured to hop in their car and go on holiday on those dates?
I suspect not.
I suspect they cannot get the holilday they want.
That does not mean the performance of the contract is impossible.
Generally disinclination is not covered by insurance.

Just my opinion and IANAL.

mikey72

vaio wrote: »

Having said that, holiday insurance is not something I’ve ever bothered taking out

Me neither.

The absolute maximum I'll go to is European breakdown cover for the motorhome, as it comes with the insurance, as does comprehensive european insurance cover.
I don't bother for the car though, and usually it only had third party minimum cover nowadays. (Although this year is the exception as CSIS cover is free comprehensive)

lisyloo

Me neither.

I'm sure you guys understand the risks you are taking and for where you are going.
But if you were going to the US (for example) then medical bill can run into millions and it's highly inadviseable to go without a high level of medical cover.

I've been on cruise ships before where they have been diverted and people have been winched off by helicopter. Not cheap.

But then I guess it depends on what sort of holiday you are going on.

I'm sure you know a Eurepean Health Insurance card will not give you NHS level of service it will only give you the serviec the locals get, so in some countries (for example) you might have to pay for a private ambulance.

I know you guys know your stuff so I'm sure you know the risks you are taking, but think it's worth stating for others reading.

MoneyMad

agrinnall wrote: »

You REALLY don't understand travel insurance do you? Instead of ranting on her and writing useless letters to the insurer why don't you invest a few minutes in reading your policy to see what cover you actually had from the moment you took it out?

Do you have anything to contribute? if not stop commenting, you obviously have some vested interest or are just plain happy to get ripped off. OR do you work for an insurance broker? Actually don't bother replying as I can imagine what you are going to say.

Anyone with anything useful to comment ?

At the end of the day this is a forum for discussion, if i have got it wrong and should just bury my head in the sand then I hate to disappoint but i do not give in that easy.


Maybe I should stop ranting now..... :mad:

mikey72

MoneyMad wrote: »

Do you have anything to contribute? if not stop commenting, you obviously have some vested interest or are just plain happy to get ripped off. OR do you work for an insurance broker? Actually don't bother replying as I can imagine what you are going to say.

Anyone with anything useful to comment ?

At the end of the day this is a forum for discussion, if i have got it wrong and should just bury my head in the sand then I hate to disappoint but i do not give in that easy.


Maybe I should stop ranting now..... :mad:

I'd write a formal letter of complaint, detailing the times and dates, of the flight, the cancellations, the request for the refund. Ask for a final response.
If they say no, refer it to the FOS.
They may say no as well, but it's free to you, and independent.

http://www.financial-ombudsman.org.uk/

MoneyMad

lisyloo wrote: »

This isn't right (and I haven't see where anyone said it).
If something happened e.g. mother/father dies, you break a leg etc. then you are covered from the point of taking the insurance, this is why you need to take the insurance when you book not when you travel. The financial risk starts when you book.



The former. Who is saying you aren't covered???

When taking out a policy you are asked when you want cover to start, I said 1 day before i travel and for 2 weeks + 1 day after (just in case of delays). The fact that I wanted it to start 10 days after taking out the policy do you think I would still be covered if something happened before the start date.? I doubt it. but i could be wrong. if so, whats the point of asking when you want the policy to start? its either from the point of taking out the policy or when you stated in the application. ! if it is the later then i should be allowed a refund surely?

dazza.mk

MoneyMad wrote: »

When taking out a policy you are asked when you want cover to start, I said 1 day before i travel and for 2 weeks + 1 day after (just in case of delays). The fact that I wanted it to start 10 days after taking out the policy do you think I would still be covered if something happened before the start date.? I doubt it. but i could be wrong. if so, whats the point of asking when you want the policy to start? its either from the point of taking out the policy or when you stated in the application. ! if it is the later then i should be allowed a refund surely?

You would, you are covering a holiday that is occuring during a defined period of time, any losses related to the holiday (subject to the policy exclusions etc.) would be covered whenever they occur.

Travel insurance (for example) would normally cover cancellation due to death of close relatives or often redundancy, these typically wouldn't occur during the specified period of insurance, but may occur at a time that would mean that you would need to cancel a holiday.