Platinum Insurance - Has Anyone Else Had Problems Collecting?

[kjn]

I am trying to find out if anyone else has experienced a problem getting reimbursed for a cancellation claim on their HAL Platinum Insurance policy.

 

I am the leader of a 115-person group that cruised on the January 14th Westerdam itinerary. Two members of our group were single ladies traveling together and both purchased the $99 HAL Platinum Insurance protection. During the week prior to the cruise, one of the ladies contracted a flu virus and was under doctor's care. On the day of departure, she called me to let me know she had not recovered and her condition prevented her from traveling. Her cabin-mate did travel and was the sole occupant in the cabin.

 

Upon our return, our travel agent initiated the claim process with both the Berkeley Group and HAL. In calls to HAL, he was repeatedly told by customer service representatives that our canceling passenger would not receive the 90% reimbursement as stated in the Plan Description. Instead, they stated if a claim was paid, a single-supplement rate would be imposed on the non-canceling passenger, effectively reducing the insurance reimbursement by the difference between the dual-occupancy rate and the single-occupancy rate. As represented by HAL, the net amount received would equal about a 40% reimbursement of the fare paid.

 

One HAL representative stated there is fine print somewhere in the policy that imposed this offset. Upon reading both the online coverage summary and "Plan Description" on the HAL website (and as a licensed attorney I am pretty good at reading this stuff), I can find no reference to a reduction in benefits when only one person in the cabin cancels. A link to the policy summary is found on the "Before You Go" page at the HAL website. There is another link from the summary page to the Plan Description. If you read the Plan Description, there is also a reference to a "Master Plan" on file with a trustee in Washington DC.

 

I am very interested to know whether this is an isolated event, a common practice that many of you have experienced, or a new surprise based on a "Master Plan" not openly published (or readily available) that HAL has waiting for it's unsuspecting customers. My travel agent says that no one in his agency (and it's an agency that does a lot of business with HAL) has ever encountered this in the past.

 

I'm hoping this is only another example of bad information passed along by customer service representatives who have been given incorrect information by a misguided supervisor. However, if this is a hidden clause in a policy filed in Washington, DC, the word needs to get out so people know what they are getting (or perhaps in this case not getting) for their money. In any event, I plan to pursue this issue a far as necessary, and will continue updating this post as things develop.

 

Thanks for your help.

[BoiseIdahoSpud]

My mother is booked as a single withe the platinum cpp. She has a health condition so we specifically recommended she pay the the policy. Although it was a lot more than $99. I think it is based on fare paid.

 

Please keep his thread updated with your experience and I am sorry for your trouble.

[NordicPrince]

I have not had any experience in trying to collect a claim on the Platinum insurance.

 

IMHO (I am not a legal expert) you have an interesting but curious claim here. Both cruisers' names are on the reservation. There is only one bill being issued. They are not treated separately but as one reservation.

 

But now you have a situation where one cruiser has cancelled, the second wants to keep the reservation and the second is now the sole occupant of a double occupancy cabin. Would you rather have the cruise line pay a full refund to traveler 1 and then charge passenger 2 the single supplement? The second passenger wanted to keep the reservation. Do you expect that second passenger on the reservation would not be charged the additional single supplement fare. This money has to come from somewhere. In this case it is coming from the final payment for the entire cabin. Both parties are responsible for this.

 

Since the first passenger did not receive a full refund and assumed the cost of the single traveler premium, IMHO it is the obligation of the second passenger to make the first traveler whole.

[Krazy Kruizers]

Are you certain that the insurance that was bought for $99 (pretty low) was the Platinum Plan??

[pms4104]

I read the full CPP description, and perhaps I missed it, but I saw no mention that the plan would reimburse the single supplement charge for the traveling person should their cabinmate cancel.

[pms4104]

Are you certain that the insurance that was bought for $99 (pretty low) was the Platinum Plan??

Amazingly, the cost for the CPP is $99 for fares up to $1000/person, and the basic plan for that same fare range is $79.

[kjn]

NordicPrince

 

Thanks for the input. I did consider that point, but I don't think it is relevant to the issue at hand. Insurance is not written to make the insurer whole, but to provide the insuree with 90% protection in the event of unforeseen circumstances covered in the policy, which in the case of the HAL Platinum policy can be for "any reason". Had this insurance been purchased through an outside carrier, there would be no issue -- there would have been a full refund due to the medical cancellation.

 

Also note the insurance is not issued for the cabin but individually to the person, and both of the passengers purchased the insurance. Under your theory, had both ladies canceled, no reimbursement would be paid to either because HAL would not be able to recover the loss.

 

Anyway, thanks again for your comments. I hope there are many others that will add to the discussion. Maybe we can find an attorney that practices insurance law that is willing to shed some light on the issue.

 

BoiseIdahoSpud

 

You are correct. Based on the charges I saw within our group, the price goes up as the rates go up. This booking was for two retired widows that dipped into their savings for an inside cabin.

[Linda&Vern]

I can relay one story on RCCL. My parents were booked on a cruise and had insurance (but I do not know who it was thru). My Father passed away several weeks before the trip, but after final payment. Mom decided (with the encouragement of her traveling companions) to take the cruise. She was reimbursed fully for Dad's share of the cruise cost ... and traveled solo in the cabin. She was surprised, but the insurance did NOT charge her any single supplement.

 

Again, this was RCCL, and I do not know what type of insurance it was. It was a group cruise (seniors in her community) and the insurance was whatever the local travel agent who arranged the trip added to the cruise cost.

[whogo]

Upon our return, our travel agent initiated the claim process with both the Berkeley Group and HAL. In calls to HAL, he was repeatedly told by customer service representatives that our canceling passenger would not receive the 90% reimbursement as stated in the Plan Description.

I would think that HAL and the travel agent would be out of the discussion at this point and that the matter would be between the cruiser and the Berkeley Group. What does the Berkeley Group say?

[pms4104]

I would think that HAL and the travel agent would be out of the discussion at this point and that the matter would be between the cruiser and the Berkeley Group. What does the Berkeley Group say?

I think that the cancellation provision, pre-embarkation, is covered by HAL because it is protection rather than insurance ... and all the other coverages, which are considered to be insurance, are mediated/reimbursed by Berkely.

[whogo]

I read the Plan Description as saying the opposite of what the HAL customer service rep said.

 

(d) You have a covered Trip Delay which results in the loss of more than 50% of Your scheduled Cruise/Cruisetour length, the Insurer will pay benefits, up to the amount listed in the schedule for:

Trip Cancellation (for Cruise/Cruisetour cancellations occurring less than 24 hours prior to departure) - non-refundable cancellation charges imposed by Holland America Line or the additional costs You may incur as a result of a change in the per-person occupancy rate of prepaid travel arrangements if a Traveling Companion cancels his/her Cruise/Cruisetour for a covered reason and You do not cancel. The maximum payment from the Insurer for Trip Cancellation is the amount You actually paid for Your Cruise/Cruisetour.

http://www.hollandamerica.com/assets/cruise-vacation-planning/Pre_09.01.09Cert.pdf

[kjn]

Whogo

 

One of the first calls from the travel agent went to the Berkeley Group, who claims they have no liability under these facts. Although I don't yet have a complete understanding of the inner-workings of this policy (but I'm sure I will by the time this thread closes out), it appears that Holland America incures the liability for pre-cruise cancellations of this type.

 

We had one other cancellation in our group resulting from viral pneumonia. We canceled the booking five days before the cruise. The 90% reimbursement was made immediately and directly by HAL, and initiated only by a telephone call from the travel agent. The cabin was re-booked by Holland America (most likely at a higher rate due to the fact the cruise was sold-out and cabins were wait-listed). Needless to say, with the $99 insurance payment, the 10% they kept on the original fare, and the added revenue from the rebooking, HAL made out very well on that one.

[Krazy Kruizers]

I am following this -- and getting updated on things as well.

 

Something sticks out in my mind -- you mentioned that the person cancelled on the day of the cruise.

 

But doesn't the Platinum insurance indicate that you have to cancel 24 hours before the cruise?

 

I am confused and collecting information.

[cruiseco]

I think that the cancellation provision, pre-embarkation, is covered by HAL because it is protection rather than insurance ... and all the other coverages, which are considered to be insurance, are mediated/reimbursed by Berkely.

 

That's true. The HAL CPP is a "cancellation fee/penalty waiver" which simply means that if the passenger chooses to cancel HAL will waive the normal cancellation fees (up to 80% or 90% depending on the level of coverage purchased).

 

Here's the relevant wording:

 

"The CPP Standard Plan is not insurance; it provides no rights other than those explained above. For example, it does not protect double-triple-quad occupancy rates should one or more members of your party cancel nor does it cover expenses or unused services due to trip interruption."

 

What makes this different from many other cruise line policies is that, for example with Royal Caribbean, their plan will also include the following coverage:

 

"CruiseCare Cancellation Penalty Waiver refunds are also provided if you are charged a change in occupancy/single supplement charge as a result of your traveling companion’s cancellation due to one of the reasons cited above."

 

So with RCI, if a single supplement charge is imposed then the remaining passenger would file a separate claim for reimbursement for that loss. HAL's plan specifically excludes that from their coverage. It's a huge hole in their plan. 99% of the time if one passenger in a cabin cancels the other will also. But when the cabin consists of two otherwise unrelated singles there's a good chance that if one gets sick and can't go the other will go anyway. If that's the case then the HAL CPP plan is not a good option for them.

[pms4104]

delete ... same thoughts as cruiseco, above

[sail7seas]

I don't know the fares paid but wonder if both the ladies made a claim......

 

Can't work the number but how would it work out if:

 

You say to HAL, okay, charge the single supplement for the lady who traveled. She then submits a claim to cover the single supplement.

 

The lady who cancelled due to illness submits her claim for cancellation.

 

Wouldn't the lady who traveled and had CPP be entitled to make a claim to cover a single supplement?

 

Work the numbers.

 

[Jemima]

Jane and Sharon book a cruise. They can get separate cabins at $1,500 per person for single occupancy. They can get a cabin (same category) together for $1,000 per person for double occupancy. They choose to share a cabin and also purchase HAL's platinum insurance.

Their booking confirmation will be in both names even though they have separate addresses. The confirmation will state double occupancy.

Sharon has to cancel close to sailing, but Jane chooses to cruise. The platinum refund is 90%. The refund would have been $1,800 for the cabin booking if both cancelled. Since only Jane cancelled the refund would be $900 and there would be an added $500 single suppliment. $900 refund - $500 for now single occuapancy = $400 actually reimbursed.

[pms4104]

I don't know the fares paid but wonder if both the ladies made a claim......

 

Can't work the number but how would it work out if:

 

You say to HAL, okay, charge the single supplement for the lady who traveled. She then submits a claim to cover the single supplement.

 

The lady who cancelled due to illness submits her claim for cancellation.

 

Wouldn't the lady who traveled and had CPP be entitled to make a claim to cover a single supplement?

 

Work the numbers.

 

HAL's cancellation protection, sadly, does not cover single supplements or fare changes when one cabin occupant cancels and other(s) do not.

[sail7seas]

Sounds like that coverage isn't all the great. Happy OP came here to share this story with us.

 

[ironin]

HAL's cancellation protection, sadly, does not cover single supplements or fare changes when one cabin occupant cancels and other(s) do not.

 

IIRC, HAL's Platinum coverage is a "No excuses necessary" plan. IOW, if we decide not to go on a cruise for any reason, we get our money back less 10%. That works well for couples when one wouldn't travel without the other. That doesn't work well for singles who are more likely to go ahead without the other. There's probably a good reason for that, too: if they did compensate for fare changes to single supplement, every person who cruises alone could sign up a friend or relative who had no intention of going, buy the insurance, cancel the second person's passage just prior to boarding and end up paying far less than they would have had they booked as a solo passenger. OTOH, the RCI policy quoted above makes reference to specific acceptable reasons for cancellation which reduce the possibility of losses incurred due to phantom bookings.

 

In the case cited by the OP, it does seem that the passengers would have been better served by an RCI-type policy. As always in life: YMMV and It pays to read the fine print - and the not-so-fine print, too.

[kjn]

I think Jemima's illustration is exactly what is now revealing itself. I think cruiseco is also right in that this is a big hole in the protection. Interestingly enough, the language sited by cruiseco is not sited in the Plan Description itself, but only in the summary page on the website. As I read the Exclusion clauses in the Plan Description, this is not a listed exception. Regardless, as the Plan Description is the document by which HAL conveys Plan coverages to the public, it seems that it should clearly state this as a limitation.

 

Unfortunately, that hole exists right at the time when many reasons for cancellation occur, in the one or two days immediately before disembarkation. Needless to say, this hole is a trap for many passengers that think they are covered when they, in the eyes of HAL, are not. In our group alone (which includes many elderly widows and widowers, and who are individuals who comprise HALs target clientel), we had 28 members that would not have canceled in the event the other person in their cabin did.

 

Accordingly, everyone needs to know about any "coverage lapse" so they do not unsuspectingly purchase a Platinum Protection Plan that provides them with far less protection than they could get from an outside carrier.

 

In any event, If HAL does demand the addition of the single supplement to the fare, we will be pursuing a claim for our passenger that did travel through Berkeley.

[kjn]

Deleted - multiple post

[kjn]

Thanks for all the interest

[sail7seas]

:D I guess you REALLY mean it. ;)

It posted three times. :eek:

 

(Just teasing as I am sure it was a 'glitch'.)

[Jade13]

Two members of our group were single ladies traveling together and both purchased the $99 HAL Platinum Insurance protection. During the week prior to the cruise, one of the ladies contracted a flu virus and was under doctor's care. On the day of departure, she called me to let me know she had not recovered and her condition prevented her from traveling. Her cabin-mate did travel and was the sole occupant in the cabin.

 

 

Thanks for your help.

 

We have used this plan before.

 

I think this is your problem, "On the day of departure, she called me to let me know she had not recovered and her condition prevented her from traveling".

 

It is a good plan, but you need to know what you are purchasing. HAL's Platinum is a protection plan by HAL up until 24 hours prior to departure. The "Insurance" part kicks in after that. In order to receive the 90% reimbursement from HAL, HAL needs to be notified between 30 days and 24 HOURS PRIOR TO DEPARTURE (at 31 days the reimbursement is actually 95% because it would have been 50% had she not had the Platinum Plan). Of course the $99.00 cost for the plan is also deducted from any refund.

 

I am assuming that Berkeley is now looking at the insurance part vs HAL's protection. If she had made a decision a day earlier I do not believe there would be this issue. I hope this helps.