Travel insurance delaying tactics?

anticlaus105

I was due to fly to Lanzarote end July with EasyJet. Just before I was due to travel the FCO guidance changed to "essential travel only". I called my travel insurance and I wouldn't have been covered, so couldn't risk the trip. I had already checked in online and there was no option to change the flight in manage my booking. I believe this is only available more than 14 days before. I emailed EasyJet requesting a refund and filled in a form online. Subsequently they refunded £26 taxes only.

I submitted a travel insurance claim. My travel insurance was taken out Aug 2019 and covers FCO saying essential travel. Every time I send a requested document they ask for another. They don't to ask for them all in one go. The final stumbling block is they want a letter from my credit card company detailing why they are not liable under S75.

I have submitted a S75 with Amex but as expected with the amount they must be dealing with this is still ongoing. I have a few questions I'm hoping someone could answer. I'm sorry if they have been answered elsewhere.

The flight operated, I just didn't get on, so are my credit card company liable under S75? I don't see any breach of contract. I've read about frustration but have no idea if that applies here.

If by some miracle my CC do pay out under S75, can the money be reclaimed at a later date, if they change their mind, or EasyJet contest it?

Is it correct for the travel insurance company to direct me to pursue S75? They know the circumstances and that the flight operated. Are they just using delaying tactics?

If it's a no to S75 what do I need to do/say to get my travel insurance company to progress the claim?

Thanks in advance.

MattMattMattUK

anticlaus105 said:

The flight operated, I just didn't get on, so are my credit card company liable under S75? I don't see any breach of contract. I've read about frustration but have no idea if that applies here.

No they are not liable. 

anticlaus105 said:

If by some miracle my CC do pay out under S75, can the money be reclaimed at a later date, if they change their mind, or EasyJet contest it?

Theoretically yes, but it is very rare and usually only in cases of fraud, however they will not pay out. EasyJet can not contest a S75 as it is the card provider refunding you, the money is not reclaimed and repaid.

anticlaus105 said:

Is it correct for the travel insurance company to direct me to pursue S75? They know the circumstances and that the flight operated. Are they just using delaying tactics?

It is not correct for the insurance company to tell you to pursue S75, but I am also not 100% sure you are insured as the flight still operated, it is regarded as disinclination to fly so it may well be in a grey area depending on the terms and conditions in the insurance policy. 

anticlaus105 said:

If it's a no to S75 what do I need to do/say to get my travel insurance company to progress the claim?

Unfortunately you have to jump through the hoops of their process before you can launch a complaint, for the moment just keep jumping, but also be mindful that you may not have a legitimate claim.

Alan_Bowen

Agreed it is unlikely there is any s 75 claim in this case as there was no breach of contract by Easyjet if the flight operated. However, every company is given a period of time to contest claims if the card company is planning to refund and although it is often as little as 10-14 days, card companies normally say you can only be certain the money is not being recharged to the account after 45 days. Although the card company repays you, they do recharge the trader if they are still trading, the liability only falls on the card issuer if the company has failed.
If your policy covered cancellation due to FCO advice against travel then you should be covered, make sure you emphasise that it was FCO advice that caused you to cancel, not simply a disinclination to travel which won't be covered

sheramber

You need to check your policy wording to see if you are covered for FCO advice not to travel. Not all policies do.

anticlaus105

Just to clarify, as I couldn't reach EasyJet by phone I emailed customer services requesting to cancel before the flight departed. They didn't acknowledge my request but I have evidence I requested cancellation. I was aware simply not turning up may cause issues with my insurance.

In fact my email was as follows:
Dear Sir/Madam,

As the current FCO advice is only “essential” travel to Spain is allowed I will sadly have to cancel my booking xxxxxx and request a full refund.

Kind regards

xxxxxxx

My policy read:

Sections of insurance A - Cancelling and cutting short your holiday

9. You cannot commence travel to your intended destination

due to the Foreign and Commonwealth Office (FCO) advice

for your destination/location changing to as a minimum ‘all

but essential travel’ after the purchase of your policy or

after the booking of any individual trip, whichever is the

latter. This also applies to where such FCO advice changes

are announced after you have commenced your

trip/holiday.

eskbanker

Alan_Bowen said:

Agreed it is unlikely there is any s 75 claim in this case as there was no breach of contract by Easyjet if the flight operated. However, every company is given a period of time to contest claims if the card company is planning to refund and although it is often as little as 10-14 days, card companies normally say you can only be certain the money is not being recharged to the account after 45 days. Although the card company repays you, they do recharge the trader if they are still trading, the liability only falls on the card issuer if the company has failed.

Sounds like you're describing chargeback rather than s75 there?  With chargeback, the card company is effectively acting as a conduit between customer and merchant, so the merchant is very much in the loop and able to dispute the claim up to a backstop of 45 days, but with s75 the buck stops with the card company, as the basis of a s75 claim is that as the creditor they're equally liable as the supplier, and so once the card company refunds the customer there's no further intervention from the merchant.  Sometimes (but not always) card companies do pursue s75-related costs from merchants but that's independent of the customer reimbursement process....

anticlaus105

Can anyone help with what to tell my travel insurance to get them moving? Amex just respond saying they are very busy. Is there a time limit on S75 and travel insurance claims? Am I at any risk of anything timing out?

MattMattMattUK

anticlaus105 said:

Can anyone help with what to tell my travel insurance to get them moving? Amex just respond saying they are very busy. Is there a time limit on S75 and travel insurance claims? Am I at any risk of anything timing out?

From your previous posts, it does not appear clear that you are eligible for a payout under your travel insurance. So long as you submitted your claim (and they acknowledged the receipt) then you are in the system and can not really "time out", if however you do not submit a formal claim within the period specified in their terms and conditions (within X days of travel/issue and almost always before the policy is renewed or ends) then that would mean you would not be able to claim. Section 75 is not applicable in this situation as there was not breach of contract between you and EasyJet.

anticlaus105

I am pretty sure I am covered by travel insurance and have quoted the relevant part of T&C above. They have played along asking for document after document but have stalled with asking me to pursue Amex for S75 and will not continue until Amex explain why they are not liable, which my travel insurance should know anyway. Until Amex confirm why they are not liable under S75 they will not settle my claim and I'm worried when Amex do eventually refuse my travel insurance will still request I pursue Amex.

Surely who I claim from is my choice. If I can't get any movement from my travel insurance is there anything I can threaten them with?

Voyager2002

anticlaus105 said:

Surely who I claim from is my choice. If I can't get any movement from my travel insurance is there anything I can threaten them with?

You can make a formal complaint: your insurer is legally required to have a complaints process. If this does not yield a response that satisfies you there is an Ombudsman scheme: your insurer is legally required to give you details of this when you make a complaint.

mattyprice4004

Your insurance company reasonably expect you to explore other avenues before a claim - they only have to pay out if they’re liable, so if you’re entitled to a refund elsewhere they won’t as you’ll potentially get two payouts. 

Unfortunately EasyJet aren’t liable to refund even if you had got through to them before the flight - it still operated, you just chose not to be on the flight. 

These claims with insurers seem to be taking an age, all you can do is keep them posted with updates from Amex and hope you’re covered when you do get confirmation from them. Good luck