Financial Default of Covered Supplier

[notjaded]

Just looked at my Allianz policy and just examined the language related to financial default and Whoa!

 

I purchase Allianz travel insurance for all my cruises. If you purchase the insurance in a timely fashion after making a reservation, one is supposed to be insured against the financial default of the cruise line. I had assumed I would be covered for all of my losses.

 

The insurance does not require covering anything except the amount which is non-refundable. So, since my cruise is still in the 100% refundable category, I went with the minimum coverage, intending to add to coverage as non-refundable benchmarks are reached.

 

In reading my policy today, it looks like I will only be covered for $750 pp in the case of a financial default, even though my fully refundable deposit was $14,000. Ouch.

 

Does this sound like a familiar situation to the group?

 

Many thanks.

[klfrodo]

From their website https://www.allianztravelinsurance.com/travel/planning/what-to-do-if-tour-company-airline-goes-bankrupt.htm

 

The financial default of a travel supplier can be a covered reason for trip cancellation. This means your tour operator, airline, or cruise line ceases all operations due to its financial condition, whether or not it files for bankruptcy. However, in order for your losses to be covered, a few conditions apply:

1. Your policy must have been purchased within 14 days of the date of the first trip payment or deposit;
2. The cessation of operations must occur more than seven days after your policy’s coverage effective date;
3. Your policy was not purchased directly through the tour operator, airline, or cruise line ceasing operations, or an affiliate of that entity; and
4. The tour operator, airline, or cruise line was included in our list of covered suppliers on your policy’s coverage effective date.

See item 3.

If you purchased directly from the Cruiseline,  I'm assuming you won't even get the $700 back.

I don't see anywhere where it mentions $700, but then again, there are about 10 policies.

 

 

However,,,, if they do go bankrupt, not all is lost for you. If a US citizen, you can file a complaint with your credit card company and they will most likely credit your account for any and all monies paid to the cruiseline for this trip.