Paid for a family group to travel as a gift - only offered partial refund for my share

ventouxvixen

As a 40th birthday present to me and my twin I booked a house in France for May half term for me and 14 of my close family. There are 5 people in my immediate family, covered by my Lloyds Bank / AXA travel insurance. AXA are saying they will only refund 5/14ths of the cost to me. The other members of my party can’t claim because they didn’t pay, therefore haven’t suffered a loss to claim against. I feel that the accommodation contract was with me and no one else, therefore my policy should cover it. The wording of the policy is vague. Does anyone have any experienced of this? Google isn’t very helpful...

sheramber

Your insurance only covers those mentioned on the policy. the others ned to claim for their share from their own policy. You ned to give them proof of payment , they claim from their own insurance and repay you.

Caz3121

similar case here https://forums.moneysavingexpert.com/discussion/6171406/travel-insurance-only-willing-to-pay-my-portion-of-a-villa-refund/p1

ventouxvixen

Thanks for the replies and the link to the other thread. I am the only person to have incurred a monetary loss here so I don’t see how the other guests’ policies would pay out. I think it will have to be one for the Ombudsmen to decide. I’d be interested if anyone has a similar case they have taken further? 

Thrugelmir

Group travel policies are available for such eventualities. 

Streaky_Bacon

The position is not clear cut.

As you say, you are the one who paid for it, you have suffered the loss and you are named on the policy.

On the face of it, you should be entitled to the claim your full loss. However the insurance company are arguing that it should be split.

It seems that you have hired a residential villa, and I can see no reason why you would not have been covered if you had hired it just for yourself.

The insurance company have no strong argument regarding the financial loss if you can show it was only your loss, but they may be able to argue that the other guests should have been declared.

What exactly happened with the accommodation? I appreciate that you couldn't travel, but was the accommodation actually open at that time? (if not you may also be able to claim for cancellation if you paid by card).

If that is not an option, then all you can do is complain, escalate to the financial ombudsman and make your case.

Have you read through your policy, and have you found anything which would appear to be relevant to your situation (in supporting or denying your claim)?

ventouxvixen

I have found nothing in my policy to confirm or deny the insurance company’s position although there are obviously references to The Insured, being me and my 4 immediate family members. At the time of the booking, travel to France was still prohibited by the UK govt, and the French govt too. A deferral (my preference) can’t be offered as the owners are selling the property after suffering too great a loss during a Covid. Unfortunately I paid by bank transfer and listed 14 guests on the booking form. 

Nebulous2

That's quite standard with insurance, I'm afraid. Other wise every hen or stag party would insure one person and put the accommodation in their name. 

Even if you named them and  the insurer accepted liability, they will ask whether you could be covered by any other insurances, so your guests would have to declare any travel insurance they have, with a view to sharing costs.

Streaky_Bacon

One other thing that might be relevant is whether the accommodation was a flat fee, or whether it was charged per head. If it was the latter then I think that would put you on a much weaker footing. However, if the accommodation was the same price, regardless of the number of guests then that might make things easier for you.

Westin

It does seem unfair.   You could after all have rented a large house just for you and your wife.   If booked as a whole rental rather than a per person rental I can't really see what the problem on your claim would be, other than the insurance company just trying to get out of paying on a claim.

ciderboy2009

ventouxvixen said:

... and listed 14 guests on the booking form. 

I think this is the main problem.  All insurance companies will try to minimise what they have to pay out - once they know that there are people other than those covered by their policy going then they are perfectly within their rights to share their losses with the other insurance companies.

A sheramber said - the other people should claim their share from their insurance polices using a copy of your proof of payment and pay it back to you.