Travel insurance paid out - but still have offer from airline - can we do both?

Susiew2001

Hi - long time lurker, first time poster! 

Last year, my in-laws had a holiday in Scotland cancelled due to a mechanical issue with the plane. The airline were unable to arrange another plane in time and therefore they couldn’t get to the Highlands to continue with the rest of the holiday (it wasn’t a package holiday hence all separate) - it has taken aaages to get the detail from the airline but finally they sent a letter explaining what had happened - travel insurance has just paid out, happy days. 

However, along with the letter from the airline, they said they would compensate them for the missed flight. They never said if travel insurance has paid you can’t claim, and the travel insurance company have never said you can’t claim from the airline and us - so my question - can they do both? 

Didn’t want to get done for fraud - but it’s not clear! 

Thanks 

eskbanker

Is the airline refunding the flight cost and/or paying fixed tariff compensation for a cancelled flight, and what has the insurer paid out for?  It certainly isn't legitimate to claim (or even accept) reimbursement twice for the same thing....

Voyager2002

Read all correspondence very carefully. In particular, check what you declared to insurance: if you told them that the airline had declined to compensate and on that basis they paid out, then you need to get back to them.

However, if the payments from the airline and from insurance are for slightly different things then you can legitimately keep both.

bagand96

When a flight is cancelled you have Passenger rights under UK261 legislation, derived from EU261.

These rights entitle you to your choice of a refund or replacement flight. They also entitle you to fixed compensation in addition to the refund if the cancellation was within control of the airline (mechanical fault and lack of replacement aircraft would normally be deemed within the airline's control)l so this would be payable)

What are the airline offering? They should have refunded you anyway, you often have to claim the compensation in addition.

I find it surprising an insurance company would pay out for airfare when the airline are legally obliged to refund you. 

Susiew2001

Thanks all - apologies for the delay and for the length of below!

The entire holiday/break was booked through Newmarket Holidays including the flight, hotel, excursions etc. when there was a mechanical issue with the plane in Dublin, it never made it to Birmingham and no alternative was offered by Loganair at that time. 

Everyone went home and the claim was started through the travel insurance as Newmarket said it all had to be done through them. 

Newmarket confirmed they had not rebooked/offered an alternative which was passed onto the insurance company. At this time, the insurance company asked had the flight been refunded already and we said no because it hadn’t because it was all booked through Newmarket who said go through travel insurance. 

The travel insurance company then asked for proof of what had happened to the flight. This info then took ages to get from the airline but they did eventually write a letter saying it was a mechanical fault, which we passed to the travel insurance company. They then offered a sum of money which was accepted. 

Subsequently, the airline then got in touch and said oh by the way - do you want some money or points/credit to your flight account (which they don’t have) - by which time the insurance company had already paid out,..

bagand96

Firstly, if it was an actual package booked through Newmarket Holidays then they should have refunded the entire cost of the package.  This is required under the Package and Linked Travel Arrangements Regulations 2018.  There should have been no need for engagement with the travel insurance or the airline and Newmarket could be in breach of their own T&C's and the PTR's (I say could as it's not clear at exactly what was booked with NH, and there might be an exclusion if they consider the package had "started")

I wouldn't let them off the hook with this, however given that you did engage with the insurance and subsequently the airline...

Susiew2001 said:

The travel insurance company then asked for proof of what had happened to the flight. This info then took ages to get from the airline but they did eventually write a letter saying it was a mechanical fault, which we passed to the travel insurance company. They then offered a sum of money which was accepted. 

What was the sum of money? Was it the amount of the claim? Was it the full cost of the package?  Did it include the cost of the flights? Or was it some sort of settlement?

Susiew2001 said:

Subsequently, the airline then got in touch and said oh by the way - do you want some money or points/credit to your flight account (which they don’t have) - by which time the insurance company had already paid out,..

It depends what the airline are offering.  You should be entitled to cancellation compensation under UK261 at a fixed rate of £220 passenger, this is in addition to any refunds/insurance claim.

If the airline are offering a refund of the airfare then it's complex.  You are entitled to that from the airline under UK261.  However if you've already declared to the insurer that you haven't received this and claimed it from them, then I think that could be an issue and you'd need to go back to them.  

I'm surprised the Travel Insurer paid out when there were legally recoverable costs from Loganair and potentially Newmarket Holidays.  Not a very thorough claims department!