Travel Insurance and flight cancellation

[Arthur Hodgson]

See also this thread for a discussion of the insurance problems regarding missing separately booked connections.

Thanks for that, aspro2.

I've done some further research and spoken to Zuji about their overseas travel insurance policy ("Plan A"). They have indicated to me that the policy should cover the missed connection situation, with few exceptions (it also appears that insurance people are loath to give a black and white yes/no type of answer). The maximum benefit under this section of the policy is $5,000, but that would certainly cover any series of tickets I would be buying.

Here is the text of the relevant part of the policy (Section 14):

"We will pay your reasonable additional travel expenses as determined by us to reach a wedding, funeral, conference, sporting event or prepaid travel/tour arrangements on time if your scheduled transport is cancelled, delayed, shortened or diverted and that means you would not arrive on time.....

"We will not pay:
a) If cancellation etc arises from the financial collapse of the carrier...
b) If your claim arises from a threat or act of terrorism..."

It seems, however, that this policy should cover many missed connection scenarios, and is also competitively priced (having got an online quote from Zuji).

I'll probably go ahead now and purchase this insurance from Zuji.

[trooper]

That DOES look good.....

If I wasn't so cynical about insurance I'd be leaping for joy... as it is I am merely interested in checking further!

Thanks for that... be great if it was "the answer".....

[aspro2]

A crucial scenario which isn't covered by those clauses is when there is no alternative available to get you to your next prepaid travel arrangement. So, that means:

1. BookedFlight1 is cancelled, so you travel on SpecialFlight1 instead to make it in time for BookedFlight2. That's covered nicely.

2. BookedFlight1 is cancelled, but there is no alternative travel option available for you to make it in time for BookedFlight2. That's not covered. (In discussions with insurers last year that basically confirmed this.) Under this scenario, you lose the second booked flight completely without any recompense available from any source.

[NM]

And note that if you don't have "a wedding, funeral, conference, sporting event or prepaid travel/tour arrangements" at the destination, you could find yourself not covered.

[Arthur Hodgson]

2. BookedFlight1 is cancelled, but there is no alternative travel option available for you to make it in time for BookedFlight2. That's not covered. (In discussions with insurers last year that basically confirmed this.) Under this scenario, you lose the second booked flight completely without any recompense available from any source.

Why no recompense?

You have missed (prepaid) Booked-flight-2 due to a cancellation by a (solvent) carrier, so I would read this as being covered by the Zuji policy. You should get reimbursed all your prepaid costs from Booked-flight-1 and all subsequent contingent arrangements which cannot be otherwise recovered.

If not covered by Section 14 of the policy, then I would expect Section 1 (your journey is cancelled or shortened through circumstances beyond your control) and/or Section 13 (Travel Delay Expenses) to cover it.

[aspro2]

Why no recompense?

You have missed (prepaid) Booked-flight-2 due to a cancellation by a (solvent) carrier, so I would read this as being covered by the Zuji policy. You should get reimbursed all your prepaid costs from Booked-flight-1 and all subsequent contingent arrangements which cannot be otherwise recovered.

If not covered by Section 14 of the policy, then I would expect Section 1 (your journey is cancelled or shortened through circumstances beyond your control) and/or Section 13 (Travel Delay Expenses) to cover it.

No recompense if you cannot actually make it to BookedFlight2 -- the insurance cover is to get you to connect *successfully*. If no connection is possible then you miss BookedFlight2. There's no implied compensation for the actual flight/arrangement itself.

People expect Section 1 (cancellation beyond your control) to apply when BookedFlight1 fails, but the exclusions usually rule out everything which is the responsibility of the first carrier (delay, cancellation, etc). And as that carrier is only obliged to get you to the first destination at some point in the next century (or refund your money), that's it. Meanwhile, the travel delay expenses clauses vary a lot in what they will cover, but whatever the situation, won't solve your problem of the lost second booked flight.

[Arthur Hodgson]

No recompense if you cannot actually make it to BookedFlight2 -- the insurance cover is to get you to connect *successfully*. If no connection is possible then you miss BookedFlight2. There's no implied compensation for the actual flight/arrangement itself.

People expect Section 1 (cancellation beyond your control) to apply when BookedFlight1 fails, but the exclusions usually rule out everything which is the responsibility of the first carrier (delay, cancellation, etc). And as that carrier is only obliged to get you to the first destination at some point in the next century (or refund your money), that's it. Meanwhile, the travel delay expenses clauses vary a lot in what they will cover, but whatever the situation, won't solve your problem of the lost second booked flight.

Well, you may be right, but from what I've seen, there appear to be fewer exclusions in this policy than most. It seems to be quite good value to me and for a relatively small outlay, anything that gives a better chance of covering any losses must be a good thing.

And chances are there will be alternatives to flight1 that can get you to flight2 on time, and thus you should be covered. I certainly accept that on the odd occasion where events really conspire against you, you will be on your own and will have to fend for yourself.

Thankfully, in well over 2 million miles of flying, I have never found myself in a situation that has left me significantly out of pocket and that wasn't recoverable with a some quick thinking and follow up action. Having the right knowledge, experience and contacts always helps (for me at least), particularly when flying *A.

[Happy Dude]

I would have thought that one of the issues here was to cover additional costs such as new flight tickets, etc, if you are connecting to a different (eg LCC) carrier on a different ticket. Think Jetstar to Tiger to Air Asia, etc. This policy would clearly not cover such costs, so you would have to purchase a new ticket out of your own pocket.

This is correct Arthur and is what occurred in my situation. The cancellation of an Emirates flight (for mechanical reasons) led me to miss a connecting NZ flight which I had to re-purchase at my own expense. I also forfeited a night's accommodation and car hire in ZQN that had been pre-paid. Consequently I sought compensation under the "additional expenses" (section 4), rather than "travel delays" (section 13 highligted by kpc).

I wrote to Emirates after being denied compensation by 1cover and they (Emirates) coughed up for a hotel and meal in AKL, but I was on my own for anything else.

Incidently the 1cover policy is managed by Mondial and underwritten by Allianz. Either way, the exclusion of "flight cancelled for mechanical reasons" in a travel insurance policy is utterly ridiculous and such policies should be avoided.

[Petch]

Thanks for posting your experience Happy Dude, even though it wasn't so happy.

My 1cover annual policy comes to an end very shortly - I will not be renewing it. So far, for my needs, I find it hard to beat Zuji, and its section 14 cover (although not surprising that only an online travel business would have negotiated this type of cover with its underwriter/supplier).

[aspro2]

I wrote to Emirates after being denied compensation by 1cover and they (Emirates) coughed up for a hotel and meal in AKL, but I was on my own for anything else.

Incidently the 1cover policy is managed by Mondial and underwritten by Allianz. Either way, the exclusion of "flight cancelled for mechanical reasons" in a travel insurance policy is utterly ridiculous and such policies should be avoided.

I'm very glad to see factual confirmation that the worst-case scenario is real, though I'm sad to read that you had to go through it! There are many many situations arising like this nowadays with so many people booking multiple flights separately, and there are numerous situations where there won't be alternative connections to get you to your onward travel arrangements.