Low Cost Holidays - Is my Insurer RIGHT or WRONG

harrispb

I took out insurance and paid an additional premium for SuperPlus cover which provided cover for THIRD PARTY SUPPLIER INSOLVENCY.

The policy documentation clearly states "WE WILL PAY YOU UP TO THE AMOUNT SHOWN IN THE POLICY SCHEDULE FOR ANY IRRECOVERABLE UNUSED COSTS AND CHARGES RELATING TO THIRD PARTY COMPANIES THAT BECOME INSOLVENT WITHIN YOUR BOOKING, SUCH AS ACCOMMODATION PROVIDERS, HOTELS, CAR HIRE, FERRIES, COACHES, WHICH YOU HAVE PAID OR ARE CONTRACTED TO PAY.

I completed the claims forms etc and received this response:

Having reviewed your claim, we note that you had to cancel your holiday as a result of the holiday company gone into administration. May we please refer you to your policy wording.......... In view of the above condition of the policy, the reason! you are claiming for cancellation falls outside the wording and we regret to advise you that we are unable to consider your claim on this occasion.
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The cancellation/curtailment policy wording was contained in the email but the insurer made no mention of the Third Party Insolvency cover which I had paid for so I replied and explained that it appeared that they had not realised I had taken the SUPERPLUS level of cover.

The insurer's FINAL RESPONSE

Your policy includes Section L: Third Party Supplier Insolvency, which states : We will pay You up to the amount shown in the Policy Schedule for any irrecoverable unused costs and
charges relating to third party companies that become insolvent within Your booking, such as accommodation
providers, hotels, car hire, ferries, coaches, which You have paid or are contracted to pay.
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We have been instructed by your insurer, Mapfre Assistencia, that ‘accommodation provider’ is defined as ‘the operator of an accommodation establishment’ and that Low Cost Holidays were not the operator of any accommodation establishment. Accordingly, they take the view that such claims are not covered by this policy.[/B]
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We realise that this may not be the answer you were hoping for, so you may wish to follow the Complaints Procedure found in your policy wording.

I believe I am being fobbed off by the insurer and cannot understand why they would list accommodation providers (lowcostholidays) and hotels as separate examples within the policy wording and then refuse my claim as they are saying lowcostholidays were not the operator if the accommodation establishment.

PLEASE HELP

maddogb

as I am reading it, it appears that cover is for 3rd parties as hired by LowCostHollidays (to provide services) going bust, not the firm themselves, is there any more to this policy or does it all come under the heading?


"THIRD PARTY SUPPLIER INSOLVENCY"

Quentin

As you are unhappy with their final response you can escalate the issue at no cost to you to the FOS for their adjudication

harrispb

FIRSTLY THANK YOU SO MUCH FOR TAKING THE TIME TO READ MY POST.

Initially my claim was rejected:

Having reviewed your claim, we note that you had to cancel your holiday as a result of the holiday company gone into administration. May we please refer you to your policy wording under Section A Cancellation or Curtailment Charges which states the following;

What is Covered
We will pay You, up to the amount shown in the Policy Schedule, for any irrecoverable unused travel and accommodation costs and other pre-paid charges (including sports, concert and entertainment tickets) which You have paid or are contracted to pay together with any reasonable additional travel expenses incurred if:
a) Cancellation of the Trip is necessary and unavoidable as a result of any of the following events occurring;
or
b) the Trip is Curtailed before completion as a result of any of the following events occurring:

1. The death, Bodily Injury, illness or Complications of Pregnancy and Childbirth:
a) You
b) Your Travelling Companion
c) any person with whom You have arranged to reside temporarily
d) Your Close Relative
e) Your Close Business Associate

2. Compulsory quarantine, jury service attendance or being called as a witness at a Court of Law of You or Your Travelling Companion.

3. You or Your Travelling Companion being made redundant, as long as You had been working at Your
current place of employment for a minimum continuous period of two years, and that at the time when You purchased this insurance or at the time of booking any Trip, there was no reason to believe that You would be made redundant. This cover would not apply if You are self-employed or accept voluntary redundancy.

4. You or any person who You are travelling or have arranged to travel with are a member of the Armed Forces, Territorial Army, Police, Fire, Nursing or Ambulance Services or employees of a Government Department and have Your/their authorised leave cancelled or are called up for operational reasons, provided that such cancellation or Curtailment could not reasonably have been expected at the time when You purchased this insurance or at the time of booking any Trip.

5. In the event of Burglary at Your Home within 48 hours of Your departure or the police requesting You to return to Your Home due to serious damage to Your Home caused by fire, aircraft, explosion, storm, flood, subsidence, malicious persons or theft.

In view of the above condition of the policy, the reason you are claiming for cancellation falls outside the wording and we regret to advise you that we are unable to consider your claim on this occasion.

When I explained that I had paid an additional premium for Third Party Supplier Insolvency they sent me this response:

Reactive Claims have been appointed by your insurer, Mapfre Assistencia, to handle your claim on their behalf. We thank you for submitting your claim documents, which have been registered under the above claim reference number. Please note our contact details below and we would kindly ask that you quote our claims reference number in all contact with us.

Your policy includes Section L: Third Party Supplier Insolvency, which states : We will pay You up to the amount shown in the Policy Schedule for any irrecoverable unused costs and charges relating to third party companies that become insolvent within Your booking, such as accommodation providers, hotels, car hire, ferries, coaches, which You have paid or are contracted to pay.

We have been instructed by your insurer, Mapfre Assistencia, that ‘accommodation provider’ is defined as ‘the operator of an accommodation establishment’ and that Low Cost Holidays were not the operator of any accommodation establishment. Accordingly, they take the view that such claims are not covered by this policy.

maddogb

Yup can't see any cover for this event, if you paid by credit card even a portion u may be able to claim off cc co.