My travel supplier cancelled my trip due to COVID-19 and I have been issued a travel credit or voucher for future travel. Can I claim a refund now under my travel insurance?
If you file a claim for a trip that was cancelled due to COVID-19 your claim may not be paid by your travel insurance provider because of a clause in your policy which states that your insurer will only reimburse you for pre-paid travel expenses that are non-refundable or non-transferable. This pandemic has turned the world upside down in many ways. One of the major changes we have seen is that, even on travel bookings that were originally purchased on a non-refundable basis, travel suppliers are still issuing future travel credits on trips cancelled due to COVID-19. Some of these credits are valid for up to one or two years and some do not expire.
There is a basic premise applicable to this type of insurance that you should not “gain” by claiming under your policy. You can be made “whole” if you have purchased adequate insurance, but you should not come out ahead.
If your insurer paid your $1,000 claim for a cancelled trip and you later used a $1,000 credit to re-book that trip, you would essentially be “gaining” from your insurance contract. You would be taking a $1,000 trip and your insurance company would be paying for it. Only in a situation where you would not be able to use the credit would you be eligible to submit the loss for consideration under your insurance policy.
KNOW YOUR POLICY – Contact your provider for more details.