Insurance question/problem - help!

[Dave&Ann]

I posted this inquiry last week on the Celebrity board and some folks there suggested that I likewise post it here to see if anybody has any suggestions. Here is my earlier post:

Help. I know this isn't technically a Celebrity question, although it arises from our upcoming October trip on Millie, and there doesn't seem to be a "Cruise Insurance" board category (unless I missed it, in which case I apologize).

We're going on a family trip (me, my wife, my daughter, my brother-in-law, my wife's mom, my wife's two aunts and their two friends). All except one of us bought cruise insurance from TravelSafe. As it turns out, one of the aunts appears to have leukemia and likely will not be able to travel. She was booked with Ann's other aunt in the same cabin, so we presumed that her additional single supplement would be covered by TravelSafe since her roommate cannot travel (will have documentation). When I called TravelMate (apparently, there's a maze of interconnecting parties involved with insurance), the representative said their program is "reimbursement based." According to him, this means her aunt has to pay her own fare, plus the single supplement (final payment due 7/23 for the 10/12 sailing) and file a claim upon return from the trip. I was astonished. The whole premise behind insurance (IMHO) is to protect the buyer in the event of some unexpected problem. Essentially, this guy is telling us that she has to front the price of virtually two cruises for nearly 3 months and then apply to get her money back. This is most likely a once-in-a-lifetime experience for Ann's aunts (in their 70s), and her aunt is scrimping and saving to go, so now they tell her to come up with an extra $3,000 for Celebrity to hold for 3 months. I don't know how she's supposed to afford that. I have re-read the brochure, and I have a slightly different take (the brochure talks about reimbursement of lost payments, and says that it "will pay your additional costs..." if a traveling companion cannot travel and you do not cancel your trip. Nonetheless, does anybody have experience with this? In the alternative, if I've missed some other information available on the boards, I would appreciate it if somebody would point me in the right direction.

Thanks! Sorry for the long post!

Dave"

Dave & Ann

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[Guest]

Insurance, by its very nature is designed to pay a claim after the fact (i.e., or on a reimbursement basis). What they are telling you seems fair to me, basing it on how their business operates.

Example, your aunt gets "pre-reimbursed" by the insurance co. She then cancels her cruise, gets most of her money back from the cruise line, and already has the insurance money in hand. In essence, she could have made a "profit" from the deal. Remember up to 30 days or so prior to the cruise, it would only cost one their deposit amount if canceling. Then the insurance co. would have to go after her for a reimbursement. I'm sure your aunt is a "salt-of-the-earth" type of person, But, not all are and some without reservation would commit such an insurance fraud. Hence, insurances are designed to reimburse after the fact!! One can come up with dozens of other examples where such a "pre-reimbursement" can put the insurance co behind the so called 8-ball...........

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[Dave&Ann]

Thanks, Richard.

I can see your point. I guess it just seems to point out one of the shortcomings of travel protection. From a layman's perspective, it's hard to swallow that the traveler would have to eat the cost of a second trip for almost 4 months before being able to file a claim. It's hard enough to come up with the money for the first cruise. Not many people have an extra $3,500 lying around to "front" to the cruise line before the insurance company reimburses. Philosophically, I understand and agree why they do it, but personally, I think it's very unsavory. I also think they are quite unclear about the mechanisms for paying claims when the travel agent is pushing the policies; not that this excuses due diligence by the buyer, but the intricacies of the policy often elude those unfamiliar with the technicalities of insurance companies. Anyhow, thanks for your feedback. I appreciate your insight.

Dave

Dave & Ann

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[CaptData]

One other point, the other person would also be applying to get back insurance (with prove). They have all ready proven that they are sick and can not go so they want their money back too. I would get a copy of the other person's letter to help prove your aunt's claim later on. Single people always get hit hard. She will have to keep her orignal invoice and her second invoice so that she canget the differance back.

Hopfully a Hawiian Cruise

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[Krazy Kruizers]

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Since the one person won't be able to go on the cruise, I assume that she is cancelling now. In that event she hasn't made final payment (since you said the cruise is in Ocotber) and there fore she will be her deposit back.

That is way the cruise line and insurance company may require the aunt who is able to travel to pay that very high single supplement rate.

Don't count of the insurance company paying the traveling aunt money back after the cruise as they may pioint out that the aunt could have let the cruise line choose a roommate for her and thereby not charge the single supplement rate.

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[cruiseco]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>

Don't count of the insurance company paying the traveling aunt money back after the cruise as they may pioint out that the aunt could have let the cruise line choose a roommate for her and thereby not charge the single supplement rate.<HR></BLOCKQUOTE>

In twenty years in the travel business and having seen this exact situation many, many times I've never seen an insurer decline payment because the traveler (or the travel supplier) "could have" or "should have" found a replacement travel partner.

Remember, the insurers are regulated by every state's Department of Insurance. If they ever tried this kind of flim-flam they'd be out of business in whichever state the victim resides.

[Guest]

Since you said the aunt would not likely be able to travel why cancel the trip at this point. If she decides she cant go and you are in the penalty periods then the insurance would pay for her trip. In this case, the cabin would not technically be empty and therefore the single supplement would not apply.

Don

[cruiseco]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by dkjretired:
Since you said the aunt would not likely be able to travel why cancel the trip at this point. If she decides she cant go and you are in the penalty periods then the insurance would pay for her trip. In this case, the cabin would not technically be empty and therefore the single supplement would not apply.

Don<HR></BLOCKQUOTE>

You've got to be careful with the timing on this sort of thing. The insurance will only cover the cancellation penalties in force at the time (in the case of a medical situation) the doctor recommends against travel. If the DR says "no go" when the panalty is only $250 but the cancellation isn't made until it's 100% of the cruise fare all that will be paid is the $250 -- the passenger will eat the rest.