Stand off between Travel Insurance and Travel agent

MrsMo

In March, on the day the FCO advice against essential travel changed, I cancelled a trip to Singapore with Dial a Flight. At that time the hotel and flights were still operational. Dial a flight refunded the flights minus 300pp which they said was Emirates cancellation fee and nothing for the hotel as it was so close to departure , 18 days to be precise - this becomes important later. Our loss was £2200 which was the claim I submitted to my Insurance company. Five months and 3 complaints later (including delay and poor claim handling processes) they are repudiating my claim saying Dial a Flight are liable to pay me under the the Package Travel and Linked Arrangements legislation as this a cost recoverable elsewhere which their small print stipulates they will not pay. They have offered to help me sue Dial a Flight to recover the money. Kind of them........ Dial a Flight say they not liable for refund of cancellation fees as departure was not imminent ie less than 14 days, which is their definition of imminent.ABTA apparently leave this definition up to individual travel companies. It would have been good to been made aware of this at the time.........

So I find myself caught between 2 companies both saying the other is liable. My thought is to take my Insurance company to the FOS as this cost is not recoverable as this is the purpose of insurance.
I now have a Christmas trip to Kenya to try and unwind with the same 2 companies. 

Has anyone had experience of similar and can offer advice?

Westin

I think Dial a Flight are right and the travel insurance chancing their arm.

Whilst the PTR’s do in part cover this situation the liability is only down to the level of the unused services that the travel provider can recover from third party suppliers.  If they attempt but are unable to recover refunds from suppliers or their are penalties to pay then those are the costs that your travel insurer should be covering and paying out on.

I wonder if a letter or cancellation statement from Dial a Flight that shows what elements they have refunded, less any penalties, plus what they have been unable to get a refund on, would settle the matter with the insurer. I think I would probably go down that track and send to the insurer and ask them to reconsider.  If that does not work I would contact the Insurance Ombudsman and seek their help and interpretation of the Package Travel Regulations. Telling your travel insurer that you will be doing this may also refocus their mind. 

BTW - we could have been in Singapore together! We were due to fly 18 March but ended up cancelling 16 March.

MrsMo

Thanks Westin. Travel Insurer had a copy of the cancellation invoice, in fact 2! Their first response was to try and get me to make a section 75 claim, missing the fact it was me that had cancelled! My 3rd and final complaint was direct to the MD which resulted in a partial payment for seat reservations that I had paid for directly (hence the processing errors) so I too think it’s off to the ombudsman!

[Deleted User]

I might be wrong but I think if YOU cancelled and the hotel was still open then you are not automatically entitled to any refunds.     UNLESS you specifically have insurance cover for your cancelling due to FCO advice?      Some do, some don't.  So check your policy terms and agreements carefully.    If you do have then you need to follow above advice.      I don't think the travel agents are responsible for reimbursement at all.   You are probably lucky you got most of your flight money back and can only think you booked flexi tickets with a cancellation penalty?