Insurance company asking us to commit fraud!

Mick-H

My wife and I paid for our family holiday to Florida, 6 of us in total, flights, mini van, villa and attraction tickets. this was to be a family holiday at the expense of myself and my wife to celebrate our 35th wedding anniversary, my wife's retirement, our daughters 30th birthday and granddaughter leaving primary school.
Our insurance policy covered, myself, wife and son, as we all live in the same household. My daughter, husband and granddaughter had their own insurance.
Due to Covid the holiday was canceled so like many others we are now trying to claim on insurance. Flights, car and Tickets are being sorted through the companies we booked through and although it may take some time all have responded well. 
So we have put a claim in of £2625 for the villa. To date the insurance has come back with this.
Cancellation: £2,625.00 / 6 = £437.50 x 3 insured = £1,312.50 Less excess: -£50.00 per person (-£150.00) Total settlement: £1,162.50 
And have said that my daughter claim on her insurance for the remainder.
My way of thinking is that this should not be the case. We, my wife and I paid for the holiday if my daughter makes a claim on her insurance as our insurance are telling us to do, surely this would be fraud.
We have provided proof of payment from our account surely therefore we should recieve the full amount less a £100 administration fee £2525.
Any thoughts.

hollie.weimeraner

Check the terms and conditions but I would expect the villa to be refunded in full to you.

Carrot007

The point would be that even though you paid for it, they were not insured. Reghardless of who pays insurers require ionsured persons to be named.

Sucks and have seeen this myself. It's not fraud as long as they give the money back to you. But they may well not be insured for not paying as well.

This is the downside to yearly policies rather than per holiday with named people.

Should all be in the terms whic hwere not read of understood.

Mick-H

Carrot007 said:

The point would be that even though you paid for it, they were not insured. Reghardless of who pays insurers require ionsured persons to be named.

Sucks and have seeen this myself. It's not fraud as long as they give the money back to you. But they may well not be insured for not paying as well.

This is the downside to yearly policies rather than per holiday with named people.

Should all be in the terms whic hwere not read of understood.

Sorry can't agree, regardless of how many were staying in the villa the price was the same £2625.
If I stayed there alone or 8 people stayed there.
Making a claim on insurance to get money for something you have not paid for can not be legal.

Hasbeen

hollie.weimeraner said:

Check the terms and conditions but I would expect the villa to be refunded in full to you.

Would not say its fraud. Regardless of who paid your daughter has her own insurance policy for her family. So your insurance which you paid for has agreed to pay you. They are asking your daughter to claim off the insurance company that she paid to pay her?

My thinking anyway LOL. But someone more expert will advise. 

sheramber

  Check your insurance policy. I know one stated they only paid for  the insured person's share of the expenses regardlss of who paid for it. 

Carrot007

Mick-H said:

Carrot007 said:

The point would be that even though you paid for it, they were not insured. Reghardless of who pays insurers require ionsured persons to be named.

Sucks and have seeen this myself. It's not fraud as long as they give the money back to you. But they may well not be insured for not paying as well.

This is the downside to yearly policies rather than per holiday with named people.

Should all be in the terms whic hwere not read of understood.

Sorry can't agree, regardless of how many were staying in the villa the price was the same £2625.
If I stayed there alone or 8 people stayed there.
Making a claim on insurance to get money for something you have not paid for can not be legal.

I see where you are coming from and yes, and in the case I know the person was paying extra for the "whole" villa for a week for other people but they were still paying it with no money expected.

It comes down to who is insured. Your insurance did not cover a third party even if you funded them.

Yes it would have cost you the same. However this is why the insurance company ask for the documents. So they can say. Some of it was for a third uninsured party.

Yes it sucks. But as far as I can see you were underinsured. And as I said probably as the payee you were the only person who could have taken out insurance for the others and theirs is also not covered. (but it all comes down to the T&C's so they can ask, they can only be refused).

magritte

My travel insurance mentions specifically that they don't pay for:
"The unused costs of any person who is not insured by this policy. If you are travelling with someone who is not insured under this policy, we will only pay your portion of any costs even if you have paid their costs as a gift."
"Any claim for expenses for a person not insured by this policy regardless of who has incurred the expenses"

If your daughter and her family have travel insurance, it's definitely worth having them read the fine print and check with their insurer - some policies do over gifted trips. They should claim for their portion of the trip costs, in this case it was for 3 people - your daughter, husband, and their child. If they get money from their insurance, they can give it to you, as you paid for their holiday. 

https://www.insuremytrip.com/insuring-your-trip/travel-as-gifts/  see the last paragraph in this "I Received a Trip as a Gift - Can I Insure It?"

Thrugelmir

Your insurance company is ensuring that they are not victims of fraud. Where different parties make claims for the same event. 

eskbanker

Mick-H said:

Our insurance policy covered, myself, wife and son, as we all live in the same household. My daughter, husband and granddaughter had their own insurance.

Mick-H said:

Making a claim on insurance to get money for something you have not paid for can not be legal.

I really can't see how this could be construed as illegal or fraudulent, but if you were so keen to have insurance aligned with payment, then you should have included all travellers on your insurance policy.  I'm not saying that that would have been sensible but it would be the only way to ensure that all insurance claim money came back directly to the one paying for the trip if that's so important to you - the insurance companies neither know nor care who actually paid for the holiday and are solely basing their decisions on who's insured under their policies.  If, for the sake of argument, it had been necessary to claim for flights or anything else, it would have been the same, i.e. claims are made by those insured against their insurers, which is the only way it can realistically work....

Mick-H

I can see where your coming from re flights, each seat is individual to the person .
The villa however is not, the price for the villa is the price regardless of how many stay there.
If my daughter does try to claim she has no proof of purchase so can't see how she could do it.