Travel insurance refund due to pandemic

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Jul 7, 2020
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Hi there.... I am a first time user, so please bear with me. In Feb my husband and I booked a Monograms trip to Italy for this fall through a local travel agent. We have just been notified that the trip was canceled due to the pandemic. Thankfully they will be refunding all of our deposit $1100. We also purchase Cancel for any reason travel ins $687 through the agent with Aon. Due to the fact that the trip was canceled and there is no trip to insure we are requesting a refund for the premium paid. I called Aon and they told me to file a claim for the refund. However, I have seen somethings online that say that to be eligible for a refund you can’t have filed a claim. How should I handle this? I want to make sure I get this right. Please advise. Does it seem logical that we should get a refund for premium if there is no trip??? We are not canceling the trip it has been canceled?? Travel agent told us that we could get voucher for ins if we booked a trip by 7/20 for anytime within next two years. Given state of things w/ Covid we are concerned Monogram or Aon may go out of business. Not sure when we’ll feel comfortable traveling abroad. This is a lot of money for us to lose. Any help you can provide would be greatly appreciated. Thanks you so much.
Leslie S.
 

justlisa

Feb 12, 2019
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You started being covered by your insurance the minute you purchased so in that sense you already had used your policy. However, some insurers are letting you transfer policies for canceled trips to other trips. Asking to transfer the policy to another trip or asking for a credit for future purchase may be more likely to get a yes than asking for a refund. I believe more travel insurers are option for a transfer/credit than a refund.
 
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May 21, 2020
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near Charlotte, NC
You should call back and ask specifically how to request that your premium be refunded to you. I know that some companies, like Allianz for example, have a dedicated email to send those requests. You will likely need to include proof that your trip is cancelled.
 
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Neil Maley

Moderator
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Dec 27, 2014
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www.promalvacations.com
You should call back and ask specifically how to request that your premium be refunded to you. I know that some companies, like Allianz for example, have a dedicated email to send those requests. You will likely need to include proof that your trip is cancelled.
Allianz is the only insurance company that offered a refund as far as I know. Most offered a credit and some offered nothing. This supplier may not offer what Allianz did.

Do not file a claim-that negates a refund of the policy. I do agree you should call back and speak to a supervisor because filing a claim for a refund makes no sense and if it’s CFAR you don’t get 100% back anyway.
 
Last edited by a moderator:
May 21, 2020
64
119
33
near Charlotte, NC
Allianz is the only insurance company that offered a refund as far as I know. Most offered a credit and some offered nothing. This supplier may not offer what Allianz did.
Good point but if the door to a premium refund was opened by the agent (OP mentioned it was), there is no harm or loss in pursuing the return of the $687.
 

jsn55

Verified Member
Dec 26, 2014
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You can probably move this insurance to a new trip. But a rebooking deadline of 7/20 is ridiculous. Nobody would be rebooking a trip yet. While there's a small possibility of a refund, the best approach is to request a credit toward a future trip; a credit good through the end of 2021.
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
23,405
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www.promalvacations.com
Good point but if the door to a premium refund was opened by the agent (OP mentioned it was), there is no harm or loss in pursuing the return of the $687.
I think the agent might have made a mistake about the policy being refundable. Then the agent said they can get a voucher if they rebook by July 20. That makes no sense. The other travel insurance companies required us to notify them if the client wasn’t using the policy and issued a voucher good for two years from the original date the insurance was booked.

It sounds like the agent might be mistaken. I would suggest selling the agency and speaking to the owner.
 
Jul 7, 2020
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I took your advice and made some additional calls. I spoke to the travel agent again and he confirmed that we have two options:
1. To take 100% refund of our trip deposit ($1100) from Monograms. If we do this, the travel insurance is considered used and nonrefundable.

2. - Take a travel credit for our deposit (1100) plus $100 bonus from Monograms for a trip to be booked through 2022 with any Globus company. With this option the travel insurance will be moved to a universal letter of credit for a future trip. We don't need to book now, just need to make a decision. If they don't hear from us by 7/20/20, they will just automatically issue a credit.

I also called Aon back. After spending over an hr on the phone with them, I was told that they only act as a third party with Monograms and that I needed to go through Monograms for a credit. Aon said they don't receive money from Monograms? Does this make sense?
Questions:
Does it make sense that the trip insurance would have to be linked to a specific travel company??
Considering that the ins was expensive, I hate to lose the money. But given the state of things with the pandemic I am concerned about the stability of travel industry as a whole. Will it be safe to travel? Will company still be in business?
Any advice you can provide would be greatly appreciated.
Thanks so much.
Leslie
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
23,405
23,376
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New York
www.promalvacations.com
We can’t make a recommendation. That is something you need to discuss with your travel agent. But here are some questions to ask:

1. Are you planning to stay home for the rest of your life and never travel again?

2. If you aren’t, would you rather have the full refund less the insurance? Or would you rather recover the insurance money with a future credit and hope the company stays in business so you can take a trip at a later date?

3. No one is a genie and can predict if the supplier will be in business next year. We’ve been shocked at some of the travel companies that have closed so far.

You really need to talk to your travel agent and she the best decision for you. It’s not something we can say for you.
 
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justlisa

Feb 12, 2019
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So you've given them $1787. Your options are

1) Receive 62% of your money back ($1100 back and realize a loss of $687)

2) Receive a 106% credit of your money with a risk of not wanting to travel by 2022 or the company going bankrupt

It depends on your risk tolerance and how ok you are with traveling with this company again vs just having money back in your pocket.
 
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jsn55

Verified Member
Dec 26, 2014
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Globus is a large travel provider that's been around for a while. I had no trouble accepting a credit from their subsidiary, Avalon Waterways, for a river cruise that included first class air. I had good warning from my travel agent, so I could rebook quickly and insure the new trips. My travel insurance covers insolvency, so I am quite comfortable with the credits. It's all a completely personal decision.