Travel insurance and the volcano?

[TomTN]

I heard this morning that insurance industry will call the volcano an "act of god", and avoid paying many claims.

 

Anyone collect yet?

 

As my attorney once told me "God is not always a merciful God".

[Susan-M]

Insurance policies normally provide a clear definition of what is and is not covered. I would be surprised to find the wording "Act of God" listed as an exclusion on the policy, but if it were, I think it would be accompanied by a broader definition of what acts they consider to be "Acts of God".

 

Those whose transportation plans have been affected by the volcano should have a close look at their policy wording, in the sections defining what is covered and what is excluded.

[foureyedbuzzard]

"Acts of God" is an archaic term. Most insurers now use the term "Natural Disasters".

[diane.in.ny]

My TA told me that while insurance will probably not pay for cancellation, if one can finally makes it home or catches up with their ship, insurance might pay under the Trip Delay part.

 

I hope some CC members, when things calm down for them, can let us know which insurance companies came through for them.

[Phxazzcruisers]

A volcano is unfortunately a "natural disaster" and is usually not covered by insurance. Please keep us informed if anyone is able to claim against their policy.

[mauiwindsurfer]

AA cruise travel agency sold us Travel Guard as the best out there and more costly than the cruise insurance. I called Travel Guard and they said read the following paragraph page 7:

Under Trip cancellation and interruption,... This coverage does not cover loss covered by,..(ii) inclement weather,...

 

page 2, under definitions:

Inclement weather means any severe weather condition which delays the scheduled arrival or departure of a common carrier.

 

Thus neither our air or our cruise is covered.

[Susan-M]

According to this article, 90% of the insurance companies that provide insurance through insuremytrip.com include coverage related to travel disruption caused by the volcano.

 

One thing to note: it's too late to purchase insurance for an upcoming trip for losses related to the Iceland volcano.

 

http://www.msnbc.msn.com/id/36606833/ns/travel-tips/

[Redtravel]

Will the cruise line insurance refund those cruisers who miss the boat? I can understand the non cruise insurance companies not paying, but if you book the cruise and buy their insurance, I would hope that the cruise line would value the business. I'd hate to buy a cruise and buy the insurance and have the cruise line not pay up. Anyone know what's happening? I know some planes are flying today, but another eruption is expected. This could kill the travel industry.

[Susan-M]

Will the cruise line insurance refund those cruisers who miss the boat?

 

If it's an insured peril on the policy, then yes.

 

If not, a goodwill gesture on Azamara's part could happen, but probably in the form of a credit. Even that might be more of a financial burden than they can absorb depending on the impact this occurrence has on their business.

[Redtravel]

Suppose you booked your cruise months ago before the big price increases. Now you cannot sail because of the ash. You get a cruise credit for what you paid. Now the same/similar cruise has increased in price. What now? You have a cruise credit and it could cost you a lot to rebook. In may cases, the cruises have doubled in price...and if you booked airfare separately, you lose that $$ too. Now you lost a fortune, didn't take a cruise, and have a credit that will cost you a lot of $$ to use. Being in that situation, I think many people will stop cruising. The simple drive to your destination usually works. You may see a big increase at vacations within driving distance of people's homes. I know that it's not the cruise line's fault or the airline's fault, but when you lose your vacation and your money, you tend not to do that type of thing again.

[Susan-M]

I know that it's not the cruise line's fault or the airline's fault, but when you lose your vacation and your money, you tend not to do that type of thing again.

 

Events such as this have a short term effect on travel, and a few people may choose to never travel by air again, but people will forget quickly, especially if the travel industry is anxious to get people booking again, and offers incentives to do so.

 

I have a different perspective on this than you do and wouldn't let a loss such as this prevent me from booking another flight or cruise. I've had the occasional setback in life and I find it's much better to look ahead than to look back. :)

[150edmiston]

Act of God is very rare in policies now. The wording generally used is catastrophy or natural disaster, and these are then spelled out in detail in the fine print. Worth shopping around for one, although you will pay a premium for this. Your exclusions and excess will also generally be better in your favour with a more expensive policy i.e. Gold over Silver.

 

I have a friend who is in Dubai (post cruise) with his wife and 3 kids. He cant get home and is spending tons of cash. His policy does not cover this event so he is seriously out of pocket.

 

David

[Redtravel]

I am curious to see how Azamara handles the situation for cruisers who miss the boat or get stranded at the end of a cruise without a way to get home. I certainly hope that they help people during this situation. It's a costly but critical way to come out looking good. Imagine the great press if they really help solve stranded cruisers problems. Waiting to see what happens.

[greyhound101]

I just spoke with my TA and she said they called Travel Guard yesterday, and we are covered for the volcano. I think you need to not take my word for this but call Travel Guard or your TA and confirm.

[Skeezics]

I booked my insurance through "Insure my trip.com" (American Express Global Travel Shield Deluxe). Called on Sunday and was assured that I would be covered. On a side note, several years ago my parents missed a cruise because they were snowed in. Received their $$ back from the insurance company.

[Susan-M]

I am curious to see how Azamara handles the situation for cruisers who miss the boat or get stranded at the end of a cruise without a way to get home. I certainly hope that they help people during this situation. It's a costly but critical way to come out looking good. Imagine the great press if they really help solve stranded cruisers problems. Waiting to see what happens.

 

"The International Air Transport Association estimated on Monday that 750,000 people had been stranded and about seven million people worldwide had their travel plans disrupted because of flight cancellations since April 15." (quoted from the newspaper.)

 

Likely more than a few of Azamara's clients are amongst those numbers, and as per the two posts above, some will have insurance. Should Azamara be expected to pick up the tab for those who don't have insurance? If so, should they do the same for people who can't make it to the ship in winter due to snow storms, and who don't have insurance?

[alexandra cruiser]

I dont think this disaster can be compared to missing the boat for a snowstorm,,,,yes, of course its important to have insurance, but some cruises and insurances aren t paying due to ""act of nature"...you can check www.tripinsurancestore.com/blog/ to see how some,look on right side for list. are handling it.....plus, many, like me cannot get insurance for an upcoming cruise in June,,,they say its a "known event:" and I didnt buy "cancel for any reason" due on booking,,,,boo hoo, poor me,right?Well, must admit, I DID learn that lesson.

I ll monitor how Azamara handles this, many of the regular cruise companies are dealing with this disaster as just regular "cancellations", like mine SeaDream, while most of the river cruise companies are offering re bookings,wonder why? my guess, size of company.

Think this will make me look at the fine print much more carefully and reward those cruiselines that have gone above and beyond to help, even tho they didnt NEED to..:confused:

[Redtravel]

Friend flew home yesterday from Rome...no problem.

[Susan-M]

yes, of course its important to have insurance, but some cruises and insurances aren t paying due to ""act of nature"...you can check www.tripinsurancestore.com/blog/ to see how some,look on right side for list. are handling it.....

 

If the travel policy is not paying due to "act of nature" it would have been clearly indicated in the policy wording, and not an arbitrary decision after the fact. If anyone thinks that they are being given an excuse from their insurance co. for denying coverage with no basis, and are unable to understand the policy wording, they should ask the rep from the company who sold them the policy to advise where specifically it states this exclusion in the policy.

 

The article in your link is very interesting...the author certainly doesn't beat around the bush, and I agree with his comment re some people who don't buy insurance, "Their attitude seems to be “I want someone else to pay for my mistake”.

 

I don't agree that this situation is much different than when someone misses the ship (or any other type of trip) due to a different kind of weather related incident such as a snowstorm, other than the fact that this is on a much larger scale, and a much bigger loss to expect a cruise line (or other travel related business) to compensate people who don't have insurance.

[Jade13]

I am curious to see how Azamara handles the situation for cruisers who miss the boat or get stranded at the end of a cruise without a way to get home. I certainly hope that they help people during this situation. It's a costly but critical way to come out looking good. Imagine the great press if they really help solve stranded cruisers problems. Waiting to see what happens.

 

This seems a case where travelers should have travel insurance. Someone posted that the majority did cover this volcano. If considered the interruption portion of the insurance (for those traveling home) than they should have typically 100% or 150% of the insured amount to take care of hotel or travel arrangements to get home (I assume people could fly in the other direction). Also I was on an American flight yesterday and read info I think was in there Magazine regarding canceled flights and how they handle them and it said it may include a voucher for a discount at a hotel. So, I think some airlines are helping out as well. I don't think everyone is sleeping in the airports as depicted on TV. Most people with travel insurance have to pay and get reimbursed later if they have interruption insurance.Again, this should be covered by the interruption portion of insurance.

 

The cancellation (pre-cruise) could be a little more tricky whether it is covered by your policy.

[Jade13]

 

 

The article in your link is very interesting...the author certainly doesn't beat around the bush, and I agree with his comment re some people who don't buy insurance, "Their attitude seems to be “I want someone else to pay for my mistake”.

 

.

 

Steve is a helpful contributor on CC but of course he can not advertise his company. Now if only I coud remember his handle.

 

There was a very interesting article a number of years ago (I think still on the site) regarding why secondary travel insurance may be better for some people and it is indeed for us as we have insurance that includes Out of Network and if we use the travel insurance it will go towards our deductible.

[Susan-M]

Steve is a helpful contributor on CC but of course he can not advertise his company. Now if only I coud remember his handle.

 

 

Interesting ... I didn't realize that, but a google search quickly revealed his CC name: iamtrustworthy :)