Insurance won't pay when left with no flight

Annoyed2024

OK. So I was left in South America by a European airline that was not able to put us on another flight for A WEEK! They refused to rebook us on another airline and I had to get back. So I booked another flight for 36 hours later assuming insurance (worldwide, well known company) would cover at least the difference. They are simply saying no, not our problem. Am I in the wrong? I have all the proof of this but they are just saying no. 

eskbanker

If it was an EU airline and a flight to the UK or EU, then the airline is legally obliged to put you onto another flight at the earliest opportunity, so perhaps the insurance company is expecting you to recover the incremental flight costs from the airline?  What do the policy terms say about this situation?

Caz3121

if an EU airline they would have been liable to rebook you at no additional cost to yourself or refund you. If they were unable to rebook, you would be claiming the cost of the replacement flight you had to book from the airline under the EU regulations. Hopefully you did not ask the airline for a refund as they could then say that refunding at your request was the end of the matter.

DullGreyGuy

Insurance covers you for what you cannot legally get from the suppliers themselves. Given it's a European airline and presumably a flight to the EU then they were obliged to resolve it and hence why the insurers are declining it. 

Annoyed2024

The airline is liable and also flat out refused to do this - yes an EU airline. They just said no, law or no law and there are news stories to show they do this all the time and have been taken to court and still refuse to pay or compensate. Hence why I went with insurance for the extra. What is the actual point of travel insurance if you can't use it to claim in unusual circumstances like this!

Voyager2002

Annoyed2024 said:

The airline is liable and also flat out refused to do this - yes an EU airline. They just said no, law or no law and there are news stories to show they do this all the time and have been taken to court and still refuse to pay or compensate. Hence why I went with insurance for the extra. What is the actual point of travel insurance if you can't use it to claim in unusual circumstances like this!

Time to name and shame...

Did you pay by credit card for your original air ticket? In that case, the card company is legally liable in the same way as the airline. 

Anyway, your next move is to pursue the airline for reimbursement of your ticket home. Does your insurance include protection for legal expenses? If so, that would enable you to use the court system. Otherwise the aviation industry is highly regulated and you have several avenues open to you...

And no, I would not expect insurance to pay what is the airline's responsibility.

DullGreyGuy

Annoyed2024 said:

The airline is liable and also flat out refused to do this - yes an EU airline. They just said no, law or no law and there are news stories to show they do this all the time and have been taken to court and still refuse to pay or compensate. Hence why I went with insurance for the extra. What is the actual point of travel insurance if you can't use it to claim in unusual circumstances like this!

Insurance is typically written on an insured perils basis, rather than all risks, meaning it only covers the things it says it covers within the constraints of any exclusions etc. 

Why were you "left" there? Was the flight cancelled and if so, why? Was it overbooked and you were bounced? Did you arrive late to the airport? 

You need to check your policy book and see if it's an insured peril or not, if it is then do you have evidence that the airline has refused to pay? Have you used the appropriate ADR for the airline? The ombudsman will make an insurer payout IF the policy covers the risk AND the policyholder can show they've made all reasonable efforts to enforce their legal rights. 

Annoyed2024

We were stranded because the plane took off, fuel poured out of a wing and we spent ten minutes in the air before an emergency landing back where we came from. We were then told it would be a week for a new flight, not given any recourse in terms of booking new flights and left with no info for 12 hours. We were all then shipped off to a hotel. And then brought back the next day when they again, left us for 5 hours refusing to give info or help or book anything. I chose to book a new flight along with some other travellers. Travellers who weren't able to, had another 2 days of this in the end. I foolishly assumed this was exactly the situation that insurance was for. Oh and in naming and shaming it was Air Europa, Spain's second airline. Insurance name and shame is Admiral and we have a Gold worldwide package which we pay a decent amount for. For nothing it appears.

eskbanker

Annoyed2024 said:

I foolishly assumed this was exactly the situation that insurance was for.

As DGG explains above, insurance isn't some sort of universal guarantee to resolve everything that might happen on a trip - it has very specific risk coverage that's all documented within the policy terms, so assuming that your situation was 'exactly' that covered by insurance was unwise.

Anyway, it seems clear that your way forward is to pursue the airline rather than the insurer, unless you can identify to Admiral that your policy does include this, so that should be the focus of your attention....

saajan_12

Insurance in this case is really for the open risks that's not anyone's responsibility. 
Eg if there was a delay due to weather, the airline is responsible for rerouting and your expenses during the delay. You might have costs further down as well eg for your onward travel - which may be covered by insurance. 

brianposter

Do you have any Spanish connections, intentions of visiting Spain etc ?