Cruise Insurance Question

[richfret]

Let's say things continue to get worse with the virus situation.  Cruises are cancelled for  the remainder of 2020 and then them most of 2021 until Carnival throws in the towel.  (Note that I have 23 completed cruises with Carnival and I think they are the best.)  Would any of the cruise insurances (non Carnival) cover the costs that have been paid or are their clauses in the contact that exempt payment for bankruptcies?  I got $1,300 in Carnival gift cards and I know that would be a loss but would deposits or final payments be covered?  I think not but this is one time I hope I am mistaken.  Might also be that each insurance company handles this situation differently.

 

Two years ago, who would have thought this could happen?  Thirty or so $200,000,000 ships that are tied to the pier.  You might have to adjust your calculator to get the totals.

[sparks1093]

5 minutes ago, richfret said:

Let's say things continue to get worse with the virus situation.  Cruises are cancelled for  the remainder of 2020 and then them most of 2021 until Carnival throws in the towel.  (Note that I have 23 completed cruises with Carnival and I think they are the best.)  Would any of the cruise insurances (non Carnival) cover the costs that have been paid or are their clauses in the contact that exempt payment for bankruptcies?  I got $1,300 in Carnival gift cards and I know that would be a loss but would deposits or final payments be covered?  I think not but this is one time I hope I am mistaken.  Might also be that each insurance company handles this situation differently.

 

Two years ago, who would have thought this could happen?  Thirty or so $200,000,000 ships that are tied to the pier.  You might have to adjust your calculator to get the totals.

Some policies do cover losses that occur because the carrier has ceased all operations due to bankruptcy, so you need to read the policy's terms and conditions since this needs to be specifically covered. 

[richfret]

8 minutes ago, sparks1093 said:

Some policies do cover losses that occur because the carrier has ceased all operations due to bankruptcy, so you need to read the policy's terms and conditions since this needs to be specifically covered. 

Looks like you are absolutely right.  Did some searching (Which I should have done in the first place) and found the following under "Other Covered Reasons".  "Bankruptcy or Default of an airline, or cruise line, tour operator or other travel provider  ............................... causing a complete cessation of travel services more than 14 days following Your Effective Date."  So I read that as a "Yes".  Now the next question is:  Will the Insurance Company still be around if the cruise companies fail?  That's a lot of payments to be made.

[sanger727]

10 minutes ago, richfret said:

Looks like you are absolutely right.  Did some searching (Which I should have done in the first place) and found the following under "Other Covered Reasons".  "Bankruptcy or Default of an airline, or cruise line, tour operator or other travel provider  ............................... causing a complete cessation of travel services more than 14 days following Your Effective Date."  So I read that as a "Yes".  Now the next question is:  Will the Insurance Company still be around if the cruise companies fail?  That's a lot of payments to be made.

 

That's a valid question. I believe some TAs have gone out of business. I presume that trip insurance companies would fall prey to the same circumstances. Though, if you purchased trip insurance through a carrier that carries other kinds of insurance, think they may still be liable to pay the claims? Not entirely sure. 

[sparks1093]

39 minutes ago, richfret said:

Looks like you are absolutely right.  Did some searching (Which I should have done in the first place) and found the following under "Other Covered Reasons".  "Bankruptcy or Default of an airline, or cruise line, tour operator or other travel provider  ............................... causing a complete cessation of travel services more than 14 days following Your Effective Date."  So I read that as a "Yes".  Now the next question is:  Will the Insurance Company still be around if the cruise companies fail?  That's a lot of payments to be made.

Well, now, let's see. There needs to be a complete cessation of services due to the bankruptcy and it needs to affect your particular sailing. Since they will likely be allowed to operate while things are re-organized I don't see this affecting many sailings.

[klfrodo]

If you booked directly with the cruiseline? Most likely not covered.

If you used a TA? most likely covered.

 

Here's a thread form a travel insurance expert.

 

[iamtrustworthy]

On 7/6/2020 at 7:00 AM, richfret said:

Let's say things continue to get worse with the virus situation.  Cruises are cancelled for  the remainder of 2020 and then them most of 2021 until Carnival throws in the towel.  (Note that I have 23 completed cruises with Carnival and I think they are the best.)  Would any of the cruise insurances (non Carnival) cover the costs that have been paid or are their clauses in the contact that exempt payment for bankruptcies?  I got $1,300 in Carnival gift cards and I know that would be a loss but would deposits or final payments be covered?  I think not but this is one time I hope I am mistaken.  Might also be that each insurance company handles this situation differently.

 

Two years ago, who would have thought this could happen?  Thirty or so $200,000,000 ships that are tied to the pier.  You might have to adjust your calculator to get the totals.

Hi richfret,

 

If the reason your trip is cancelled is because the travel supplier ceased operation, then you will have to find out if your policy includes Travel Supplier Financial Default.

 

If so, is it "Third Party Travel Supplier Financial Default"? If it is 3rd party, then, did you book with the cruise line directly or via a travel agent?

 

Steve Dasseos

 

 

Edited July 21, 2020 by iamtrustworthy
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