Travel insurance - paid for group holiday

ijwmtb

I booked and paid for a holiday for to Spain for my parents and adult sibling - Ryanair flights and a villa with booking.com. We were unable to travel due to the pandemic and the FCO advice so cancelled the villa and did not take the flights.  My travel insurance clearly covers cancellation due to FCO advice changing. I claimed for a refund of the flights and accommodation and my claim has been accepted. However, my insurer has only refunded me for my flights and 1/4 of the accommodation cost. They have referred to the third party rights clause of the policy which states only the holder can enforce. 

Is it correct that I can only cover the portion of the costs directly attributable to my travel/stay, even though I booked and paid for the entire trip myself and so my actual costs are higher? Do I have any basis on which to appeal? I don’t really see that I am claiming on behalf of others (particularly not for the accommodation - I can sort of see that the flights are personal). I am claiming for my own financial loss in cancelling the trip. If I’m wrong then that’s fine and I’ll mark it down as a hard learned lesson, but would appreciate advice from others more in the know. Many thanks in advance. 

bradders1983

You booked an individual policy I assume? In which case the above is normal process. Tell the other 3 members of the group to make claims.

[Deleted User]

Only the insured person is covered. The other travellers will claim on their own policies.

ijwmtb

Thanks both - yes, it’s an individual policy. Seems a bit odd that the others should have to claim under their own policies when they haven’t actually paid for anything, but if that’s standard then that’s fine - unfortunately none of them have travel insurance of their own (although would obviously have got had we actually travelled) so a hard earned lesson for me it seems. 

bradders1983

It doesnt matter who supplied the money. One individual policy = the proportional costs for one person can be claimed for.

[Deleted User]

ijwmtb said:

unfortunately none of them have travel insurance of their own (although would obviously have got had we actually travelled) 

Travel insurance is arguably far more valuable for the months before you travel, than for the couple of weeks you're actually away.

I've never understood why people delay spending a couple of quid on an insurance policy for so long.

mattyprice4004

I'd relay to the other members of the party that insurance is needed from the off, as per advice above - it'd have likely mitigated costs in this scenario. 

Unfortunately if the whole cost was payable by one policy, everyone would just claim that their family members / friends hadn't paid anything towards the holiday, and the policy holder gave it as a gift - it'd be incredibly hard for the insurance company to prove otherwise. 

k12479

ijwmtb said:

Seems a bit odd that the others should have to claim under their own policies when they haven’t actually paid for anything... 

A policy for a single person would be priced on the risk for a single traveller. If it was expected to pay out for people the individual paid for or on behalf of (pending reimbursement) then the policy could quickly become liable for 5/10/20 flights, hotel rooms, excursions, etc., in the case of family groups or say, hen/stag do's. Way beyond the risk it was priced for.

jaybeetoo

Did you book the flights and villa together with booking.com?  If so, that’s a package holiday and booking.com should give you a refund.

[Deleted User]

jaybeetoo said:

Did you book the flights and villa together with booking.com?  If so, that’s a package holiday and booking.com should give you a refund.

Unlikely but even if it was OP says they were the ones to cancel.  Insurance is only option but as they are finding out Insurers will only pay out for the named persons.  Each person would need to have been named on policy or taken out their own.