Travel Ins claim declined due to pandemic exclusion, provider public release stated otherwise?

Demanufactured · 27 April 2020 at 2:07PM

Hi All, hope some of you Experts can help me with a wriggly travel insurance provider.

I'm seeking clarification as to whether a public statement made by my insurance provider could be considered as overriding or otherwise invalidating a general exclusion of the policy which they are now relying upon to decline my claim.

I booked a holiday to Florence through TravelRepublic, due to depart 9th April. I purchased a travel policy with Legal & General on 23rd February as single trip cover.
On 10th March, the FCO issued their advice against all but essential travel throughout Italy. TravelRepublic cancelled the holiday booking on 17th March with advice stating that a credit note would be issued. This is still in dispute and as yet no refund has been received.

Whilst attempting to seek recovery of costs from TravelRepublic, I thought it prudent to raise a claim with L&G under the cancellation cover, which stated that I would be covered in the event of this FCO advice. I had been following statements released by both TR and L&G during this period, and had been reassured by a statement released by L&G linked here: https://www.legalandgeneral.com/insurance/existing-customers/coronavirus/

The relevant passage is as follows:

IMPORTANT: for customers who bought a travel insurance policy before 13/3/2020

Will my policy cover me if I cancel my trip due to the Coronavirus?

In the first instance, you should contact your airline or travel provider. If your costs can’t be recovered from your airline or holiday provider, cover is provided for cancellation if the FCO advise against all or all but essential travel to the destination you have booked, provided this was before 13/3/2020 and after you booked and purchased your travel insurance.

L&G have subsequently declined my claim, initially by advising that this set of circumstances was not covered under the cancellation section of the policy - the claims handler selectively copied & pasted that section whilst leaving out the line at the bottom that states "The Foreign and Commonwealth Office have advised against travel to your journey destination for the dates you are due to travel." They have since acknowledged their error and accept that this is a valid claim under the cancellation section.

L&G are now relying on the general exclusions section which lists "any epidemic or pandemic." During correspondence they have failed to dispute or acknowledge my points regarding the clear public statement that they have made, which to my mind categorically states that all customers who purchased their travel insurance prior to 13/3/20 and for whom FCO advice was given before that date would have a valid claim for cancellation.

Before I escalate this through L&G's complaints channel, and possibly on to the Ombudsman if necessary, can anyone confirm whether this published statement by L&G would, as I suspect, invalidate their stance of excluding travel claims due to this pandemic within the time-frames they themselves have put forward. Nowhere in the statement does it specify that this only applies to certain policies for which said general exclusions would not be applicable, therefore the reasonable assumption would be that all relevant claims would be honoured.

Incidentally, L&G have now tacked on an additional argument: "The trip was cancelled by Travel Republic, and I note they have offered you a credit note, your insurance policy would only extend to provide cover for irrecoverable accommodation, transport charges and other travel expenses. With this in mind, I would be unable to offer any payment in any event."

Surely I cannot be alone in thinking that offers of a limited time credit note can in no way be considered a recovery of costs? Do their solicitors accept payment in credit note form? Perhaps I can pay for my next policy with an Asda gift card?

Any advice would be greatly appreciated.