Travel Insurance Scam?

HappyTravellerExpert

Here is a WARNING for anybody considering buying travel insurance from 'Staysure Travel', using the insurance 'Great Lakes Insurance SE' administered by 'Ergo Travel Insurance Services Ltd'.

I bought an Annual Multi Trip policy from Staysure in December 2021 for £51.16 and I have experienced huge problems with this organisation ever since.

Most recently, Ergo Travel Insurance Services Ltd' declined to compensate me for the costs I incurred as a result of British Airways cancelling my return flight from Istanbul Airport to Heathrow Airport, i.e., the cost of an extra night's hotel accommodation and the cost to book an alternative flight to get me home.

Although I took out an Annual Multi Trip Insurance policy, apparently, because I didn't opt tick the box and pay a premium to include 'flight cancellations' they are NOT obliged to pay out. Call me old fashioned, but when anybody takes out travel insurance, one would assume flight cancellations would be automatically included?

Apparently, had I read Section 5 on page 20 and also Section 15 on page 32 of their Terms & Conditions, it would have been blindingly obvious that flight cancellations were NOT included within my travel insurance. Despite NOT mentioning this at the time of purchase, when I subsequently asked if I can 'top-up' my policy to include flight cancellations for another trip that I was planning later in the year, I was categorically told this would NOT be possible.
NB. I have shared this information with the Financial Ombudsman and the Financial Conduct Authority and they will be conducting their own investigations.

Whilst I have lost more than £300, I hope this information will help others from getting caught out by this 'loophole'.
Your have been warned. 

eskbanker

HappyTravellerExpert said:

Although I took out an Annual Multi Trip Insurance policy, apparently, because I didn't opt tick the box and pay a premium to include 'flight cancellations' they are NOT obliged to pay out. Call me old fashioned, but when anybody takes out travel insurance, one would assume flight cancellations would be automatically included?

Call me old-fashioned, but my expectation would be that 'caveat emptor' applies and that if there's a discrepancy between the purchaser's assumptions and the actual Ts & Cs, the purchaser needs to accept responsibility for not reading them.

HappyTravellerExpert said:

Ergo Travel Insurance Services Ltd' declined to compensate me for the costs I incurred as a result of British Airways cancelling my return flight from Istanbul Airport to Heathrow Airport, i.e., the cost of an extra night's hotel accommodation and the cost to book an alternative flight to get me home.

I'd expect most travel insurers to take the same view, in that they'll generally require travellers to make insurance claims only for costs that can't be recovered elsewhere, so if BA cancelled your flights then they (BA) should be forking out for the cost of the alternative flight and associated unplanned accommodation.

onashoestring

You should change the title of your post - it’s not a scam most travel insurances do not cover flight cancellations. 

garlieston

At £51 for a multi trip policy you can hardly expect something gilt edged ,as always with insurance check carefully that it meets your needs and expectations