Nationwide travel insurance cover after annual policy lapses

DCurrer

I've had two long-haul trips cancelled due to Covid-19, but have been offered refunds by both airlines.  As a result, I haven't had to look to Nationwide, my travel insurance provider, for help.  (Both were booked before the pandemic became an issue, so I understand the Nationwide policy should be of help if needed.)  BA has already refunded me, but the other refund is only promised by Virgin Atlantic, who say I probably won't get the money until September or October.

My Nationwide policy expires on 7 August, and it will cost me £198 to renew.  As I have no current travel plans, I'm reluctant to pay this for another annual policy at this stage, but they've told me that, if Virgin Atlantic can't or won't pay, they won't be liable if I haven't renewed, because the cancelled flight wasn't due to leave until 19 August.  I understood from other posts here that the provider at the point of a claim arising is still liable, even if I subsequently find insurance elsewhere, or allow the current policy to expire.  I presume any claim would be triggered as of the date the flight was cancelled - not the date the flight was due to depart, yes?

Does anyone else here a different understanding of this?  I guess the likelihood of Virgin Atlantic going bust and therefore unable to pay refunds isn't great, but is nevertheless a possibility.  How worried should I be?  (The fare involved is just over £1,900.)  Thanks!

jonesMUFCforever

I would get Nationwide to confirm to you either in writing or e-mail.
How did you pay for your trips - credit card or debit?
Is there an ATOL certificate in place?
IMO they have a case to say that if you cancel the policy before your flight departs then you have no cover. This is my understanding but I'm not a legal person.

eskbanker

According to numerous posts on here, the usual approach adopted by insurers is to expect the losses to be claimed from other parties before considering accepting a claim, so even if the airline failed to refund, there'd still be an expectation that you'd recover the costs from card providers, via chargeback or s75, so if you paid by card that'll be another safety net....

Streaky_Bacon

You are correct that it is the cancellation that counts, not the departure date.

If you do choose to renew to give yourself peace of mind, make sure you get a record of them stating that the trip will only be covered if you renew, and state that you are only renewing because they claim that you will not be covered, that you believe that this is incorrect, and that you reserve the right to claim a full refund in the future. Recording phone calls may be the easiest way (they have their own copy of course).

Virgin have a poor record of promising refunds, especially with very long timescales. How did you pay for the trip and when was it cancelled.

If you paid by card, and it was cancelled within the last 120 days, then I would suggest that you request a chargeback from your card provider. I did exactly that. I provided the proof that Virgin were offering refunds and argued that if I was entitled to a refund, which was only delayed by processing time, there was no valid reason for Virgin to dispute a chargeback.

blindman

Streaky_Bacon said:

 I would suggest that you request a chargeback from your card provider. I did exactly that. I provided the proof that Virgin were offering refunds and argued that if I was entitled to a refund, which was only delayed by processing time, there was no valid reason for Virgin to dispute a chargeback.

So did you get your money back?

blindman

DCurrer said:

I  I guess the likelihood of Virgin Atlantic going bust and therefore unable to pay refunds isn't great, but is nevertheless a possibility.  How worried should I be?  (The fare involved is just over £1,900.)  Thanks!

Start a charge back as has been advised.

Streaky_Bacon

blindman said:

Streaky_Bacon said:

 I would suggest that you request a chargeback from your card provider. I did exactly that. I provided the proof that Virgin were offering refunds and argued that if I was entitled to a refund, which was only delayed by processing time, there was no valid reason for Virgin to dispute a chargeback.

So did you get your money back?

Yes. I requested the charge back just after the US restrictions came in, and chased it about 5 weeks later. Bank processed the charge back and Virgin did not dispute (charge back was almost exactly 3 months ago).

I did originally request a refund from Virgin, but never heard anything further, apart from a single automated email.

DCurrer

Streaky_Bacon said:

You are correct that it is the cancellation that counts, not the departure date.

If you do choose to renew to give yourself peace of mind, make sure you get a record of them stating that the trip will only be covered if you renew, and state that you are only renewing because they claim that you will not be covered, that you believe that this is incorrect, and that you reserve the right to claim a full refund in the future. Recording phone calls may be the easiest way (they have their own copy of course).

Virgin have a poor record of promising refunds, especially with very long timescales. How did you pay for the trip and when was it cancelled.

If you paid by card, and it was cancelled within the last 120 days, then I would suggest that you request a chargeback from your card provider. I did exactly that. I provided the proof that Virgin were offering refunds and argued that if I was entitled to a refund, which was only delayed by processing time, there was no valid reason for Virgin to dispute a chargeback.

Many thanks.  I paid for the flights on a Virgin Atlantic credit card.  The cancellation notification was e-mailed to me on 20th June, and another e-mail confirming that my refund request was being processed was sent on 1st July.  This advised that it could take up to 120 days for me to receive my refund.  I will try a chargeback request, as you and others have suggested, to see if that gets me the money more quickly.

blindman

DCurrer said:

Many thanks.  I paid for the flights on a Virgin Atlantic credit card.  The cancellation notification was e-mailed to me on 20th June, and another e-mail confirming that my refund request was being processed was sent on 1st July.  This advised that it could take up to 120 days for me to receive my refund.  I will try a chargeback request, as you and others have suggested, to see if that gets me the money more quickly.

My refund notification has just come through. (28th July)
This was at 116 days from the cancellation.

I haven't received the money yet though....