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Travel Insurance Question...can't get my head round this.

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Can someone help clarify something for me.

A family of 4 (Mum, Dad and 2 kids) are going on holiday with, and paid for by, Nan.

The holiday is booked on line, naming all 5 persons travelling. Mum pays the deposit at time of booking, but Nan then rings to pay the full balance.

The family already have annual travel insurance for themselves. Nan takes out a one off policy for herself for the trip.

If there is an insured event, which results in the whole trip being cancelled, after full payment has been made, who can claim for what under each of their own travel policies???

We have looked at our own policy wording, out of curiosity, which (to paraphrase) states that:

Costs incurred for persons not named on the schedule are excluded.
The policy covers REFUND of costs incurred by those named on the schedule.

Is there a big hole in cover here?? As the family of 4 travelling are not out of pocket by much, but the Nan is out of pocket for the MAJORITY of the trip, not just her portion of the cost.

Help, i think my head's going to implode.

If there is a hole in cover, how do you fill it, do all named parties on a booking have to be covered under the same policy....surely that can't be the case. If Mum had paid for the whole trip, and Nan just given her the money for it later, would that 'close' the hole.

Cheers
How's it going, AKA, Nutwatch? - 12 month spends to date = 2.60% of current retirement "pot" (as at end May 2025)

Comments

  • Quentin
    Quentin Posts: 40,405 Forumite
    edited 26 January 2018 at 7:07PM
    Insurance you have described would cover each travellers costs.

    Had only nan been insured and the holiday was cancelled she would only be able to claim her fifth of the cost even if she paid everything
  • Sea_Shell
    Sea_Shell Posts: 10,028 Forumite
    Tenth Anniversary 1,000 Posts Photogenic Name Dropper
    thanks, but how could the family claim under their policy for refund of their costs, when they didn't pay in the first place? They have not suffered a financial loss, the Nan has.

    In another scenario....what if Nan had booked and paid for the whole thing. Could the family still claim cancellation under their policy, when they've had no input on the booking at all, other than being a named passenger?
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.60% of current retirement "pot" (as at end May 2025)
  • Quentin
    Quentin Posts: 40,405 Forumite
    Yes.


    Each insured party member claims their individual share of the cost being claimed


    If only Nan were insured then she could only claim a fifth of the costs if the whole trip was cancelled!
  • Sea_Shell
    Sea_Shell Posts: 10,028 Forumite
    Tenth Anniversary 1,000 Posts Photogenic Name Dropper
    But Nan can't "force" family to make a claim on their own policy, or take out a policy in the first place, thereby potentially leaving her out of pocket.
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.60% of current retirement "pot" (as at end May 2025)
  • Quentin
    Quentin Posts: 40,405 Forumite
    You are correct.


    Nan cannot force each member of the party to take out insurance.


    But in that case only her individual costs would be covered, not the whole party's costs even though she paid them
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