Holiday cancelled? Here is why you should always contact your travel providers before submitting a claim

As the UK lockdown continues and the global pandemic has caused the major holiday destinations to be shutdown, consumers are facing the nightmare of cancellations.
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Many have submitted a claim to their travel insurer, only to be told that they must try and get their money back from other holiday providers first. This has caused confusion and frustration.

Rebecca Kingsley, brand manager of consumer awareness initiative, travelinsuranceexplained.co.uk gives advice on how customers may recover any lost holiday money, and highlights who to contact between various providers.

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Why do I have to try and get refunds from other providers before I can claim on my travel insurance?

Holiday cancelled? Here is why you should alwayscontact your travel providers before submitting a claimHoliday cancelled? Here is why you should alwayscontact your travel providers before submitting a claim
Holiday cancelled? Here is why you should alwayscontact your travel providers before submitting a claim

Your provider(s), such as your travel agent or airline, failed to deliver the service you paid for so you must first try to contact them for a refund.

This process, which we understand is frustrating, is facilitated by several laws which protect customers in these circumstances. For example, the 2018 Package Travel Regulations Act offers protection to holidaymakers that buy a package holiday, i.e. a holiday by which a tour operator arranges for at least two different types of services, such as, for example, flights and accommodation.

Airlines may also be held responsible under European legislation, which states passengers that suffer long delays, cancellations, missed connections and flight re-bookings should be compensated and should offer a full refund or an alternative flight in case of cancellation.

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It is also worth noting that by recovering costs elsewhere, you may, with some providers, save the cost of your policy excess – which is normally applied per person on the policy.

What’s the point of having travel insurance if the insurer tells me to go to other providers to get my money back?

There are two main purposes of having travel insurance.

Firstly, all policies will cover your medical costs should you fall ill abroad, provided that all medical conditions have been declared and accepted by your travel insurer beforehand. Most insurers will also cover any medical claims submitted as a result of falling ill with coronavirus while on holiday.

Secondly, in normal circumstances, travel insurance will also cover you for cancellation or cutting short your holiday, such as you becoming ill or being made redundant, something that your tour operator or travel provider is not responsible for.

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However be aware that cancellation cover does vary greatly from policy to policy so check the policy wording or speak to your insurance provider.

At what point can I claim on my travel insurance?

You should only submit a claim to your travel insurer once all the other suppliers have confirmed they are unable to either provide a refund or an alternative option, you may be asked for proof of this when submitting a claim.

It goes without out saying that you will only be able to submit a claim if the policy you bought has cancellation cover, so check your policy for the exact wording, as any bought around the time that the FCO changed their advice may have exclusions for coronavirus-related claims.

What if I am offered an alternative option for a refund?

Many tour operators are offering a refund in the form of a credit note, enabling you either to reschedule your booking or to receive a cash refund at the expiry date of the credit note. It also retains the financial protection that you had with your original booking.

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But please be aware, if you accept a credit note, you will prevent you from submitting a claim for cancellation to your travel insurance as the holiday and money is recoverable.

Customers may also be offered the chance to rebook their same holiday for a later date (probably 2021), but keep in mind you will only be able to take your trip if the travel restrictions have been lifted by the FCO.

Also, you should contact your travel insurer to check if the policy dates can be changed to suit the new trip; bearing in mind that if the new holiday is more than 12 months away, you might have to pay a little extra in order to amend your policy.

It is entirely up to you whether to accept these alternatives. They are also worth considering if you don’t have cancellation cover within your travel insurance policy.