Travel Insurer won't pay out when unable to go on holiday

Capt_Mainwaring

Hi - some of the experts on this forum were immensely helpful to me with a car parking fine I had the other year (which I was able to defend successfully in court) and I'm hopeful you can help me again.
In July, I was due to do on a privately booked holiday. There is no travel agent involved and the cost to the airline was paid via debit card (initially to a family member who paid for it). Due to several reasons including guidance from the FCO/UK Government, our destination being placed in local lockdown (prior to date of departure) and those in our party who paid for the accommodation were self-isolating, we were unable to have our summer holiday. As you can imagine, it's not very nice paying for a holiday and being unable to go on it.
The family member who paid for the flight (which included our money) claimed under their travel insurance, who paid out. As that policy didn't cover us, I have now claimed and have seen my claim brushed to one side, in what appears to have been a very hastily written letter. I wish to complain, as I totally disagree with their response and I am aware that I can refer to the Financial Ombudsman if unsuccessful with my complaint. 
I just wondered if anyone on here had experienced anything similar and could provide me with any hints/tips in order to get my insurer to pay out?
Thanks

Thrugelmir

On what grounds was your claim declined. 

[Deleted User]

Capt_Mainwaring said:

I just wondered if anyone on here had experienced anything similar and could provide me with any hints/tips in order to get my insurer to pay out?
Thanks

Indicate to them the policy clause under which you are claiming.

macman

Did the flight operate as scheduled? Was the accommodation available on the booked dates?
You cannot claim on the basis of self-isolation (nothing to do with the airline or accom provider) or FCO guidance against travel (purely advisory and did not prevent you from travelling from the UK). 
If the flight operated, then you or the lead booker have no claim for the airline segment. If the accom was not available due to local restrictions (not advice), then the lead booker should have claimed a full refund from the accom provider and divvied it up among you.
The insurer expects you to mitigate your losses by first claiming from the provider(s): they are a last resort, not the first.

Capt_Mainwaring

macman said:

Did the flight operate as scheduled? Was the accommodation available on the booked dates?
You cannot claim on the basis of self-isolation (nothing to do with the airline or accom provider) or FCO guidance against travel (purely advisory and did not prevent you from travelling from the UK). 
If the flight operated, then you or the lead booker have no claim for the airline segment. If the accom was not available due to local restrictions (not advice), then the lead booker should have claimed a full refund from the accom provider and divvied it up among you.
The insurer expects you to mitigate your losses by first claiming from the provider(s): they are a last resort, not the first.

Thanks for the replies so far - Macman - one of our party successfully claimed under their policy and my claim was on the exact same basis, so I cannot see why one insurer can honour a claim, whilst the other wriggles out of it?

Capt_Mainwaring

Thrugelmir said:

On what grounds was your claim declined.

They have confirmed that 'insurance provides cover for unexpected events that happen after the policy was purchased; the risk of the FCO advising against travel to Spain has been well publicised for some time.

According to our records you did not purchase your insurance policy when you booked you holiday/trip, and didn’t so until 09/03/3030. At that time the media headlines included reference to an epidemic in the UK that could not be stopped and the cancellation of hundreds of flights. The FCO restriction was not unexpected, and we would not be able to refund your cancellation claim'

I don't believe this response is adequate and it doesn't cover all of the points raised in our claim, like local lockdown being announced in the area we were travelling to, prior to the date of departure.

Caz3121

Capt_Mainwaring said:

Thanks for the replies so far - Macman - one of our party successfully claimed under their policy and my claim was on the exact same basis, so I cannot see why one insurer can honour a claim, whilst the other wriggles out of it?

did you both have the same travel insurance policy? not all policies are the same. Some will include covering being unable to travel due FCO guidance, others will not. You need to read your policy carefully and be sure that your situation is covered

epm-84

Capt_Mainwaring said:

Thrugelmir said:

On what grounds was your claim declined.

According to our records you did not purchase your insurance policy when you booked you holiday/trip, and didn’t so until 09/03/3030. At that time the media headlines included reference to an epidemic in the UK that could not be stopped and the cancellation of hundreds of flights. The FCO restriction was not unexpected, and we would not be able to refund your cancellation claim'

Unfortunately, insurance companies want to have it both ways.  When the unexpected Icelandic volcanic ash cloud appeared insurers refused to pay out because their policies did not specifically mention a volcanic ash cloud as something they cover (and have subsequently offered to insure against it for a supplement.)  However, with COVID-19 they are refusing to pay out because it's not unexpected, unless you purchased insurance prior to the virus being detected in Europe.

Where in Spain did you book to go?  I seem to recall in early March there were no countrywide lockdowns and it was not known that the virus couldn't be mainly contained with local lockdowns, like the ones that happened in northern Italy.  In fact people who had booked holidays to northern Italy where actually asking if they could re-book for Spain instead!

Thrugelmir

Capt_Mainwaring said:

Thrugelmir said:

On what grounds was your claim declined.

They have confirmed that 'insurance provides cover for unexpected events that happen after the policy was purchased; the risk of the FCO advising against travel to Spain has been well publicised for some time.

According to our records you did not purchase your insurance policy when you booked you holiday/trip, and didn’t so until 09/03/3030. At that time the media headlines included reference to an epidemic in the UK that could not be stopped and the cancellation of hundreds of flights. The FCO restriction was not unexpected, and we would not be able to refund your cancellation claim'

I don't believe this response is adequate and it doesn't cover all of the points raised in our claim, like local lockdown being announced in the area we were travelling to, prior to the date of departure.

Cover should be always be obtained before the goods/service are procured not after.  That's the line the insurance company will understandably take.  In essence you've taken insurance out knowing that an event is more likely to occur than not. 

When did your family member originally make the booking? 

Capt_Mainwaring

Caz3121 said:

Capt_Mainwaring said:

Thanks for the replies so far - Macman - one of our party successfully claimed under their policy and my claim was on the exact same basis, so I cannot see why one insurer can honour a claim, whilst the other wriggles out of it?

did you both have the same travel insurance policy? not all policies are the same. Some will include covering being unable to travel due FCO guidance, others will not. You need to read your policy carefully and be sure that your situation is covered

No, I don't think so. I've asked for the name of the other insurer and I'm waiting for a reply.

Capt_Mainwaring

epm-84 said:

Capt_Mainwaring said:

Thrugelmir said:

On what grounds was your claim declined.

According to our records you did not purchase your insurance policy when you booked you holiday/trip, and didn’t so until 09/03/3030. At that time the media headlines included reference to an epidemic in the UK that could not be stopped and the cancellation of hundreds of flights. The FCO restriction was not unexpected, and we would not be able to refund your cancellation claim'

Unfortunately, insurance companies want to have it both ways.  When the unexpected Icelandic volcanic ash cloud appeared insurers refused to pay out because their policies did not specifically mention a volcanic ash cloud as something they cover (and have subsequently offered to insure against it for a supplement.)  However, with COVID-19 they are refusing to pay out because it's not unexpected, unless you purchased insurance prior to the virus being detected in Europe.

Where in Spain did you book to go?  I seem to recall in early March there were no countrywide lockdowns and it was not known that the virus couldn't be mainly contained with local lockdowns, like the ones that happened in northern Italy.  In fact people who had booked holidays to northern Italy where actually asking if they could re-book for Spain instead!

We were flying to Barcelona and were staying on the North East coast of Spain. Barcelona was in local lockdown at the time, as was Figueres, the nearest large town to where we were staying. No mention of this on their response.