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Insurance to cover cruise bankruptcy


gubby
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5 minutes ago, broberts said:

 

See post #13 by the thread originator.

 

 

See post #13.

My answer doesn’t change as regards how to manage.  It is unfortunate that they now have a worry.  I think they will be ok but I am such a non-worrier I don’t want to dismiss their anxiety 

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I learned a very hard lesson d/t pandemic. I do not issue any monies except for deposit on credit card until final payment is due. I also check all financial postings re solvency of company I am using.

I also examine the cost of taking a bullet..... if I can't afford to lose the money I am issuing, then I shouldn't be going. So I weigh the risks vs my desire to take the trip.

If you can breakdown parts of the trip into numbers, then insure the highest and eat the lowest loss.

My Australia trip was $$$ but it was broken down into small amounts for each segment, never all my eggs into one basket. You might also "play with credit cards". ie take a few, and charge segments onto those, assuming they all carry insurance, and pay off immediately.

I haven't heard lately of any major cruise lines going bankrupt, but that means nothing in this economic climate. Surely the US would bail them out again??

And I admit... I drive by the seat of my pants, and live by my rule if I can't afford the loss, then I shouldn't be going. I refuse to pay the Insurance Bandits!!!

Hold all monies back til final day, then enjoy a wonderful holiday. Australia and New Zealand rock!!!!

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1 hour ago, 3Shelaghs said:

climate. Surely the US would bail them out again??

They have never been bailed out.  The airlines were but the cruise lines were not.   My agent has always kept up with companies’ financials and has warned us away from using some carriers.  I agree with waiting until final payment is due, you never know what could happen 

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  • 2 weeks later...

It is late, but thanks to all who contributed. My TA contacted HAL who has now refunded all my payments except the refundable deposit. My money now sits back in my bank and will be handed over when due. As that is 10 months away, I will have a better handle on their financial status. Still, it is a full 7 months before  sailing. Never heard about bankruptcy insurance for Canadians though, so will have to continue to check for that. We have great medical and cancellation coverage, but the niggle about them going under just sits there.

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7 hours ago, gubby said:

It is late, but thanks to all who contributed. My TA contacted HAL who has now refunded all my payments except the refundable deposit. My money now sits back in my bank and will be handed over when due. As that is 10 months away, I will have a better handle on their financial status. Still, it is a full 7 months before  sailing. Never heard about bankruptcy insurance for Canadians though, so will have to continue to check for that. We have great medical and cancellation coverage, but the niggle about them going under just sits there.

When the time comes to pay be sure to use a credit card

 

Good you have the money back put it in a  good savings account & earn some $

 

Yes  have you heard something  no one else knows about  with HAL going  belly up?

 

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1 hour ago, LHT28 said:

When the time comes to pay be sure to use a credit card

 

Good you have the money back put it in a  good savings account & earn some $

 

Yes  have you heard something  no one else knows about  with HAL going  belly up?

 

No, I have not heard anything. As I mentioned earlier, it is my worry. The stock has fallen quite low, and even though it picks up every other day, it is still so low, and falls again. Don' t keep up, this is my only stock, but I am a worrier.

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On 7/15/2022 at 11:01 AM, gubby said:

Some really good suggestions. I knew that I would be happy posting this question here. I am trying to contact TD about how my CC can protect me  concerning how long I have for a chargeback. Like so many companies now, there is a long wait. My TA is on vacation until August. I will continue to be patient.

Know that a "Chargeback" will only be given by the bank if they can get the money back from the cruise line.  If the cruise line is bankrupt, there won't be any chargeback.

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6 minutes ago, CDNPolar said:

Know that a "Chargeback" will only be given by the bank if they can get the money back from the cruise line.  If the cruise line is bankrupt, there won't be any chargeback.

Most good credit cards have insurances to cover card member losses.  The terms can be found if you dig deep enough.  Usually filed under purchase protections

Edited by Mary229
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With this cruise line do they give you the opportunity to do an e-cash transfer, like a debit transfer?

 

Viking cruises does e-transfers and you save 3.3% over paying with a credit card.  I know that most want the points, but for us, the 3.3% cash saving is more than the point value on the card.  Almost double actually, and for the value of the OP's cruise that could be substantial.

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1 minute ago, CDNPolar said:

With this cruise line do they give you the opportunity to do an e-cash transfer, like a debit transfer?

 

Viking cruises does e-transfers and you save 3.3% over paying with a credit card.  I know that most want the points, but for us, the 3.3% cash saving is more than the point value on the card.  Almost double actually, and for the value of the OP's cruise that could be substantial.

HAL does offer on their Grand Voyages a 3% discount for advanced payment.  My credit card offers 2% on travel.   I know people like debit cards but I am not a fan, in the US debit cards do not enjoy the same consumer protections as credit cards 

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Our initial deposit wa 6K for the two of us. This is a 94 day cruise and even though we have booked an inside cabin, the final price is close to 50k Can. for the 2 of us. We have decided this will likely be our final cruise, and because we can do Australia and NZ without the horrendously long flights in either direction ( depart and return is San Diego). We thought at first, that it would be easier to pay about 2K monthly, rather than the final amount all at once. There will be a second payment of over 5K in June 2023, before final payment in October. HAL insurance for CFAR is pricey ( about 6k for 2)but seems better to get 90% of fare returned than losing all. As others have said, if we can't afford to lose the fare, don't book, but bucket list is hard to give up. And we have already booked.As this is just me worrying, it would be good to know all my options

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We never, ever pay any fare (or anything else)  until just before it is due.  No point in having money in the vendor's bank account when it could be in ours.  Possession is 9/10 of the law. 

 

The only exception is if there is a significant discount, ie 20 points or more and we feel good about the vendor.    At one hotel chain in SE Asia we are happy to pay in advance for several days accommodation when we get a 33 percent discount.

 

We always pay for travel with our credit card.  Never with a debit card. 

 

 Our credit card provides us with a certain amount of protection should we product not be provided.  We apply to our credit care issuer to 'charge back' the credit card transaction if done with a certain number of days.

 

If the vendor cancels and offers a future cruise incentive we would never consider 

accepting it.  At that point we cannot get a charge back on our credit card.  Plus, the vendor is then holding all the cards with regard to pricing, offerings, etc.

 

We do not want to end up on a vendors unsecured creditors listing.

Edited by iancal
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3 hours ago, iancal said:

We never, ever pay any fare (or anything else)  until just before it is due.  No point in having money in the vendor's bank account when it could be in ours.  Possession is 9/10 of the law. 

 

The only exception is if there is a significant discount, ie 20 points or more and we feel good about the vendor.    At one hotel chain in SE Asia we are happy to pay in advance for several days accommodation when we get a 33 percent discount.

 

We always pay for travel with our credit card.  Never with a debit card. 

 

 Our credit card provides us with a certain amount of protection should we product not be provided.  We apply to our credit care issuer to 'charge back' the credit card transaction if done with a certain number of days.

 

If the vendor cancels and offers a future cruise incentive we would never consider 

accepting it.  At that point we cannot get a charge back on our credit card.  Plus, the vendor is then holding all the cards with regard to pricing, offerings, etc.

 

We do not want to end up on a vendors unsecured creditors listing.

I also use credit not debit card. If we pay in full by June 1,  2023, HAL gives a 3% discount  which is close to the gratuities for one passenger.  We have no other discounts, and hope to be able to continue to receive the OBC for Carnival stock.  I understand no charge back if company is bankrupt, which is why I am trying to find out how to protect our payment if this does happen. Of course, taking the great cruise would be preferable by far! If we pay by June 1, we do need to buy the CFAR by July 29. It is pricey, but better to receive 90% than lose 100%, less the insurance cost.

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2 hours ago, gubby said:

I also use credit not debit card. If we pay in full by June 1,  2023, HAL gives a 3% discount  which is close to the gratuities for one passenger.  We have no other discounts, and hope to be able to continue to receive the OBC for Carnival stock.  I understand no charge back if company is bankrupt, which is why I am trying to find out how to protect our payment if this does happen. Of course, taking the great cruise would be preferable by far! If we pay by June 1, we do need to buy the CFAR by July 29. It is pricey, but better to receive 90% than lose 100%, less the insurance cost.

IMHO a 3percent discount is nothing these days.  You can receive 1.65 percent interest from EQBank just by leaving your money in a daily interest savings account.  


Keep monitoring the fare for price decreases.  If the fare goes down request an immediate re-fare to take advantage of it.

 

  If you are not doing so consider booking through on on line TA (or even a big box store) who will provide you with a fare discount in the form of an OBC.  You will in all probability get 5 percent or more by doing this without paying in advance.

 

Edited by iancal
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Thanks iancal. I do monitor fare on a regular basis and have talked to my TA about an OBC. after all, she will get a substantial commission from HAL on our return. Still we must pay over 5k in June, and final payment will be substantial. Need to really think about the CFAR., as I am coming up empty about bankruptcy coverage. Will also check into EQ bank.

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Call up a few TA's and ask for a quote.  At the very least call the travel section of a large box store if you are a member.  Then compare it to your TA's price.   

 

You should not have to go cap in hand to your TA and ask for an OBC.   Rather, shop for some more competive bids.

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