Forfeiting FCC to Make Trip Insurance Claim

[itsnotjustme]

After many days of illness, today one of my party of 5 was diagnosed with covid.  NCL will provide FCC, but I do have trip insurance.  I did not know how a trip insurance policy would handle that, so I called my trip insurance company and asked. 

 

They stated if I surrendered any future credits, they would reimburse me the full fare per the terms of my insurance policy.  So this benefits me with $7,000 in my pocket vs. $7,000 in FCC, benefits NCL as they keep my $7,000 and I surrender my FCC, and it costs the trip insurance company in that they pay $7,000 and keep my $800 premium paid.

 

Also reading my policy details, it only pays what was paid by cash/credits etc, not FCCs, certificates, gift cards, etc.  So in the future the FCC portion of a trip is essentially not insurable if I am understanding this all correctly.

 

Is this consistent with what others have seen?  Do others do this?  Note that this can also apply to airline miles or other items which provide a credit vice refund.

[smplybcause]

I don't think insurance has ever covered credits except maybe insurance through the cruise line. 

 

Make sure your insurance covers getting sick with covid. 

[itsnotjustme]

Yes  "COVID is considered an illness and treated the same as any illness would be under the Sickness coverage in the plan and subject to all the plan provisions."

[Cruise Gopher]

22 hours ago, itsnotjustme said:

After many days of illness, today one of my party of 5 was diagnosed with covid.  NCL will provide FCC, but I do have trip insurance.  I did not know how a trip insurance policy would handle that, so I called my trip insurance company and asked. 

 

They stated if I surrendered any future credits, they would reimburse me the full fare per the terms of my insurance policy.  So this benefits me with $7,000 in my pocket vs. $7,000 in FCC, benefits NCL as they keep my $7,000 and I surrender my FCC, and it costs the trip insurance company in that they pay $7,000 and keep my $800 premium paid.

 

Also reading my policy details, it only pays what was paid by cash/credits etc, not FCCs, certificates, gift cards, etc.  So in the future the FCC portion of a trip is essentially not insurable if I am understanding this all correctly.

 

Is this consistent with what others have seen?  Do others do this?  Note that this can also apply to airline miles or other items which provide a credit vice refund.

We are in the same boat (and we were supposed to be on the same cruise as you). I got Covid and have tested positive on multiple antigen tests now in the last couple days. I need to submit a claim and will have to call NCL to cancel tomorrow morning. 
 

How did you go about surrendering any FCC that NCL would give you as a result of testing positive?

 

This is such a nightmare and it’s only the beginning. I can only imagine how difficult of a process this insurance claim is going to be. 

[Babr]

You are understanding it correctly. If you don’t want to get caught up in the game of trying to use FCC before it  expires, take the insurance cash reimbursement.
 

You are also correct that the FCC can’t be insured for cancellation if you decide to go that route. Insurance will not consider it as a form of payment because it has no cash value even though you paid cash for the first cruise. You risk losing the value of the FCC if you can’t go.

 

 

[BirdTravels]

23 hours ago, itsnotjustme said:

Yes  "COVID is considered an illness and treated the same as any illness would be under the Sickness coverage in the plan and subject to all the plan provisions."

You need to be very careful on who is covered for the illness of one person in your party. Since you refer to "your party", I am assuming that they are not all related. In which case you could not make a full claim. 

 

You also need to be very very very careful about what constitutes an illness. Most insurance policies requires a doctor's certification stating that the ill person may not cruise at the time of diagnosis (which is now in the past). Not a positive test result. And Many doctors are not going to try and determine what makes someone unfit to cruise and stick their neck out to sign a letter and/or not going to accept the liability of writing a note based on a note based on a random test result that they did not initiate (i.e., they have no proof in the patient's medical record). Doctor's tend to be risk adverse when it comes to potential insurance fraud.  

Edited January 16, 2022 by BirdTravels

[itsnotjustme]

1 hour ago, Cruise Gopher said:

How did you go about surrendering any FCC that NCL would give you as a result of testing positive?

I have not done it yet.

 

I hit the online chat to ask NCL of there is a process to do that.  The rep seamed puzzled and asked why I canceled under POM instead of regular cancel with 100% penalty.  Hmmm. Good question. The rep also said NVL could see my reservation was marked to cancel, buyt they had not processed it yet, and if my TA called they could change it to 100% penalty.

 

My TA questioned the wisdom and if the insurance would be OK with that and I started to think more also.  I tried to call the insurance company back to be sure I would be OK intentionally cancelling with no FCC, vs. with an FCC, and they are closed for the weekend.

 

Then I thought more and remembered my insurance only pays for cash payments.  My two $250 vouchers would be a loss, as would my 10% off FCC coupon.

 

So I let it go as POM.  Now I will have time to double verify with the insurance, and if it is possible I could only forfeit the cash payment, not the certificates and 10% coupon...... or I hold onto the FCC, and apply for a credit on my insurance since I would have no claim.

 

Complicated.  Read your policy closely and ask questions.

[itsnotjustme]

7 minutes ago, BirdTravels said:

You need to be very careful on who is covered for the illness of one person in your party. Since you refer to "your party", I am assuming that they are not all related. In which case you could not make a full claim. 

 

You also need to be very very very careful about what constitutes an illness. Most insurance policies requires a doctor's certification stating that the ill person may not cruise at the time of diagnosis (which is now in the past). Not a positive test result. And Many doctors are not going to try and determine what makes someone unfit to cruise and stick their neck out to sign a letter and/or not going to accept the liability of writing a note based on a note based on a random test result that they did not initiate (i.e., they have no proof in the patient's medical record). Doctor's tend to be risk adverse when it comes to potential insurance fraud.  

This is me, my wife and three adult children.  So related, but the kids are all 21 or older.  My policy's wording is:

 

... You and is due to any of the following covered Unforeseen reasons, as defined:

2. Your, a Family Member’s, a Traveling Companion’s, a Service Animal’s, a Pet’s, Traveling Companion’s Family Member’s, Business Partner’s or Business Partner’s Family Member’s, Sickness or Injury, that:
a.occurs before departure on Your Trip;
b.is examined and treated by a Physician or Veterinarian prior to cancellation unless it is not reasonably possible to do so; and
c. as certified by a Physician, results in medical restrictions so disabling as to cause You to cancel Your Trip.

 

So the ill person is both family member and travel companion to the other 4.

It did occur before departure.

There is an ordering doctor's name on the certified test result.

She has not been treated, but it was not reasonably possible because the test result came Friday afternoon, and her condition is not emergency.

We would need to get the doctor's statement....

 

Agree - it is made difficult.

[itsnotjustme]

All that said I think I am glad I left it as POM.

[SpainAlien]

6 hours ago, itsnotjustme said:

 apply for a credit on my insurance since I would have no claim.

 

The insurance company may not give you a credit since they have assumed the risk of cover from when you purchased the policy until now. Not having made a claim does not mean that you have not had the cover available. For example you can't cancel your car insurance at the end of the year for a refund because you didn't crash the car

 

Edited January 16, 2022 by SpainAlien