Shold the Travel Insurance pay us the value of a cancelled voucher from the Travel Agent

We had booked a holiday to Madagascar for August 2020 which because of Covid did not take place.

We had booked flights with Air France which we have had refunded and travel and accommodation with a reputable local travel Agent in Madagascar for which we had paid a substantial deposit..

The travel agent in Madagascar informed us that the travel industry in Madagascar has taken a blanket decision not to issue refunds but to provide travel vouchers instead, and duly issued us with a Voucher to the value of our deposit valid for 2 years.

At the beginning of 2021 we decided that we would investigate claiming on our travel insurance for the deposit paid to Madagsacar Travel agent as we think travel in the voucher period is not suitable for us.
We contacted UK Insurance who provide travel insurance via our nationwide account. 

The first representative we spoke to us said immediately that he understood our position travel was not viable within the voucher period and told us that in order to pursue a claim we would need to refuse the voucher and get a cancellation notice from the Travel Agent and also check with our bank to see if they could implement a charge back.

We instigated a claim providing the cancellation notice and confirmation the bank could not do a charge back as the transaction was by bank transfer but the claim was refused the reason stated was: 
"you have been offered a voucher for 2 years, and we cannot exchange a voucher for a cash refund"

We disputed UK Insurance's  decision telling them that we were advised by their representative that the claim was valid and who gave us instructions on how to proceed. 

UK Insurance reviewed the recording of the initial conversation and confirmed our version of events offering us £100 as an apology but insisted that their position is still the same and that they would not recompense our deposit to the Travel Agent.

We replied that we currently have no Credit Note as we had refused it. We were told that we should approach the Travel agent to get it re-issued and if that was not possible to contact the legal protection provided with our Nationwide Account to see if they can pursue the Travel Agent through legal channels to get a refund.

We have not approached the Travel Agent in Madagascar to re-issue the voucher yet.

Our Question is - shold the Travel Insurance pay us the value of the cancelled voucher from the Travel Agent or are they just fobbing us off?


  • ThrugelmirThrugelmir Forumite
    83.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The insurance company will expect you to mitigate their losses. The offer of the voucher provides this. As far as the insurer is concerned you are financially in the same position as before. Therefore there's nothing to claim. Your decision not to travel has nothing to do with the insurance company. As it's not an insured event. 
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • It is pretty standard for insurance companies to refute claims when a credit of some sort has been offered.   Might be worth scrutinizing the t’s and c’s of your policy just in case?  Unlikely but you never know.  

    Don’t know what the insurance rep was on when he advised you but that has been cleared up so to speak.  

    Only thing you can do is either request the credit voucher and book as far ahead as you can. (No guarantees at this stage about flights).  Alternatively withdraw and take the hit.   Not a great situation to be in but You won’t be able to make the hotel in Madagascar issue you a cash refund so credit is about as good as it will get.  (Unless they have a sudden change of heart?  You can never tell if bombarding with requests for a refund will wear them down or dig their heels in 😬)
    Then in future book a package holiday.
  • propprop Forumite
    16 Posts
    Part of the Furniture 10 Posts Combo Breaker
    Thanks for the replies guys.
    Currently the Forign Office advisegainst non essensial travel to madagascar, so if we get the voucher re-instated what will be the position in a years time when it expires, would we be able to claim if the FO are still advising against travel or in tye case the Travel Agent refuses to issue an extension?
  • sherambersheramber Forumite
    12K Posts
    10,000 Posts Seventh Anniversary I've been Money Tipped! Name Dropper
    That would probably depend on your travel insurance at the time and whether there had been a blanket advice against travel  for  the whole  time or whether the restriction had been lifted at some point and then reinstated.

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