Insurance not paying up because unusable credit offered

lawrenson

Hi,
Was due to travel to the USA in March.  Had a few excursions booked when I was there.
Some cancelled (obviously) but offered me future credit to spend in 2020.
It seems unlikely I will be using that.
My insurer (LV) is refusing to pay as i have been offered credit.
Do i have to wait until the credit offer expires - assuming of course there is no travel to the USA this year?
Cheers,
Karen

WorkHealth

I have same issue with our insurance - if you are offered credit or date change they aren't paying out when you can't use credit or date change. AFAIK you can't claim later either. Though maybe if you rebook and then can't go that date they pay out then. Not sure but our insurance (InsureandGo) will pay out nothing to us so we lose £1600 as FCO says can travel but other countries won't let in. 

Nebulous2

Insurers are all trying that - but as far as I am aware it hasn’t been tested. If you are unhappy with your insurance company, submit an official complaint and then if still unhappy go to the ombudsman. 

missile

Charge back?

Westin

I agree with Nebulous2 with regard to the comment on travel insurers trying it on.  There certainly seems to be more comments being made on this and other forums of travel insurers making it difficult or refusing to make claim payments.

Apart from a natural try-on not to pay monies out, also perhaps that they are out sourcing claim handling to perhaps inexperienced people, I wonder if they are (conveniently) confused between a refund credit note and a credit voucher with restrictions.

If a refund credit note was accepted then the principle of this is that if unused by a certain date then a monetary refund would be given when cashed in. These RCN being more common in the U.K, and EU when travel firms simply could not process or afford to refund everyone’s money at the same time.  If a credit voucher was instead issued and was they only option given, depending on any conditions attached, this credit may well have no monetary value after a certain time.   The former (RCN) I can understand why an insurer might reject a claim but for the latter, if the credit voucher can not be used then I would hope a good travel insurance company would accept this and a claim.

To the OP, I would check the voucher conditions and if no cash alternative then speak with the travel insurers again explaining that you have tried to mitigate your losses but for this element you cannot and given you are unable to use the credit voucher would ask that this be considered within your travel insurance claim.