Travel insurers under pressure to refund Brits for policies they can’t use during coronavirus crisis

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TRAVEL insurers are coming under pressure to refund customers for policies they can’t use during the coronavirus crisis.

Disappointed holidaymakers have had their flights cancelled and travel plans disrupted due to the pandemic.

Travel insurance brochures and magazines.

Yet many travellers are still paying for policies that effectively no longer have any use.

This applies to those who’ve bought annual policies, rather than single trip cover only.

The Foreign and Commonwealth Office (FCO) advised against all but necessary travel in mid-March, ruling out a majority of trips.

If you ignore the advice by the FCO and travel anyway, you risk invalidating your insurance policy.

Meanwhile, travel insurers are still collecting or keeping payments from customers.

James Daley, of the campaign group Fairer Finance, is now urging providers to issue customer refunds.

He said: “It’s hard to see how firms can justify not providing any refund at all in these circumstances – particularly if you’ve not taken any trips at all since you bought your policy.”

The Financial Conduct Authority (FCA), the financial regulator, recently said it expects insurers to consider how coronavirus has affected the value of their products.

If it has been “materially affected”, providers should consider reduced premiums or partial refunds, it added.

Martyn James, of online complaints tool Resolver, told HOAR customers don’t have an automatic right to a refund and that it’s “unlikely” that travel insurers will issue one.

But he added that customers can raise a complaint with their provider, arguing that they’re paying for goods and services they can’t use.

If you’re unhappy with the response, you can take it to the Financial Ombudsman.

A spokesperson for the Association of British Insurers (ABI), told HOAR: “Most travel insurance policies provide cancellation cover from the day you take it out to the day of departure, giving travellers an essential safety net to protect against the risk of plans being cancelled before you are due to travel.

“However, insurers do understand that some people will have bought policies they no longer require due to restrictions in light of Coid-19.

“It is a commercial decision for insurers to offer partial refunds so people should speak to their insurer if they have bought a policy that is no longer required.”

Holidaymakers rescheduling trips are also being urged to check that their travel insurance will cover rebookings.

We reveal three ways travel firms and airlines are trying to wriggle out of refunds.

Plus, here’s how to check if your travel insurance policy will cover you for coronavirus cancellations.

Did you miss our previous article…
https://www.hellofaread.com/money/supermarket-may-bank-holiday-opening-times-heres-what-time-aldi-tesco-and-asda-are-stores-open-on-monday/