Final Answer Please Gift Card Reimbursement

[Mary229]

@iamtrustworthy  This often discussed topic needs an expert's opinion.  If I carry an annual travel policy will they reimburse to a cruise line gift card?  Thank you.  

 

 

[iamtrustworthy]

9 hours ago, Mary229 said:

@iamtrustworthy  This often discussed topic needs an expert's opinion.  If I carry an annual travel policy will they reimburse to a cruise line gift card?  Thank you.  

 

 

Hi Mary229,

 

I don't know. I haven't found an Annual Trip Cancellation plan that is good enough for me to sell due to their plan limitations with what's needed to cover the changes in travel since Covid started.

 

Steve Dasseos

[Babr]

It probably depends on whether the policy you are considering recognizes gift cards as a form of payment. If you don’t find it under Payments and Deposits in the Definitions section, you’ll have to call.

 

It may be that they will cover the actual cost of the card with documentation showing what you paid. They will not cover the amount of the discount so if you purchased a $500 card for $450, then $450 is the amount that would be reimbursed in cash for cancellation with a covered reason. In no case would they reinstate a cruise line card at face value.

[Mary229]

1 hour ago, Babr said:

It probably depends on whether the policy you are considering recognizes gift cards as a form of payment. If you don’t find it under Payments and Deposits in the Definitions section, you’ll have to call.

 

It may be that they will cover the actual cost of the card with documentation showing what you paid. They will not cover the amount of the discount so if you purchased a $500 card for $450, then $450 is the amount that would be reimbursed in cash for cancellation with a covered reason. In no case would they reinstate a cruise line card at face value.

my research today led me to an article  discussing how to insure a cruise that was gifted to you.  I think the underlying principle is if you insure a trip for a given amount then you are covered for that amount regardless of who or how paid.  
 

What happens with credit card insurance is a different issue I suppose.  I still wonder how much of the cruise must be charged to the credit card to be covered.  if the trip cost exceeds the insurance provided certainly you shouldn’t have to charge the overage?  

[Babr]

Was the cruise a gift or are you paying with gift cards you purchased at a discount? Either way, if you have to file a claim, the insurance company will want proof of the amount paid. You can’t just pick a number.

 

The Chase card Guide to Benefits says simply that the cardholder must charge all or a portion of trip costs to the card. “Portion” is not defined as a percentage of total cost.
 

The scheduled amount for cancellation is capped per incident. It is not determined by how much you charge or what the trip costs. It is just a statement that the policy will pay no more than that.

 

[Mary229]

15 minutes ago, Babr said:

Was the cruise a gift or are you paying with gift cards you purchased at a discount? Either way, if you have to file a claim, the insurance company will want proof of the amount paid. You can’t just pick a number.

 

The Chase card Guide to Benefits says simply that the cardholder must charge all or a portion of trip costs to the card. “Portion” is not defined as a percentage of total cost.
 

The scheduled amount for cancellation is capped per incident. It is not determined by how much you charge or what the trip costs. It is just a statement that the policy will pay no more than that.

 

I gifted one and she has never had a problem getting insurance.  It occurred to me that using gift cards should be allowed also.  Yes, I could back up gift card purchases and application to fare - I am a good record keeper.  I also noticed that the cruise line now notes the precise gift card on the invoice 
 

I think your Chase interpretation is correct.  I have 4 cruises coming up and will try a combination of methods.  
 

of course I use a separate medical policy which truly is the biggest risk from our point of view.  Having to pay evacuation from a remote locale can be quite expensive 

[Babr]

20 minutes ago, Mary229 said:

I gifted one and she has never had a problem getting insurance.  It occurred to me that using gift cards should be allowed also.  Yes, I could back up gift card purchases and application to fare - I am a good record keeper.  I also noticed that the cruise line now notes the precise gift card on the invoice 
 

I think your Chase interpretation is correct.  I have 4 cruises coming up and will try a combination of methods.  
 

of course I use a separate medical policy which truly is the biggest risk from our point of view.  Having to pay evacuation from a remote locale can be quite expensive 

 You can get insurance for a cruise that is gifted to you, but you can’t get cancellation/interruption coverage without a trip cost. Your friend may have entered $O trip cost to get medical/evacuation and some travel benefits like travel delay or lost luggage. She would have to ask you for cost and documentation if she wanted comprehensive coverage and had to file a claim for cancellation or trip interruption.

 

Gift cards are covered by some policies but only for the actual amount paid.

 

It might help to know that evacuation in insurance terms means transportation to the nearest appropriate facility if the initial one is not able to provide the level of care required. Most often, the patient is treated locally and returned home by commercial air when he is able to travel. That includes a medical escort if needed, but it rarely means repatriation by air ambulance, which happens only if it is medically necessary and  is approved by all physicians and hospitals involved as well as the insurance company. The insurance company will make the decision and the arrangements.

 

Nevertheless, any part of that is expensive so medical and evacuation coverage is important.

[Mary229]

2 minutes ago, Babr said:

 You can get insurance for a cruise that is gifted to you, but you can’t get cancellation/interruption coverage without a trip cost. Your friend may have entered $O trip cost to get medical/evacuation and some travel benefits like travel delay or lost luggage. She would have to ask you for cost and documentation if she wanted comprehensive coverage and had to file a claim for cancellation or trip interruption.

 

Gift cards are covered by some policies but only for the actual amount paid.

 

It might help to know that evacuation in insurance terms means transportation to the nearest appropriate facility if the initial one is not able to provide the level of care required. Most often, the patient is treated locally and returned home by commercial air when he is able to travel. That includes a medical escort if needed, but it rarely means repatriation by air ambulance, which happens only if it is medically necessary and  is approved by all physicians and hospitals involved as well as the insurance company. The insurance company will make the decision and the arrangements.

 

Nevertheless, any part of that is expensive so medical and evacuation coverage is important.

I have reviewed my health policy with Steve and am satisfied with the plan.  I would be quite satisfied to stay local for medical care and covering hotel stays as needed. Sometimes insurance is more helpful in its assistance than in its payments.  The insurance will assist in some of the costs of getting home finally and as you know last minute  flights can be quite expensive. 

[Babr]

Then I misunderstood your statement expressing concern about having to pay for evacuation from some remote locale. I thought you had different expectations from your policy.

[Mary229]

5 minutes ago, Babr said:

Then I misunderstood your statement expressing concern about having to pay for evacuation from some remote locale. I thought you had different expectations from your policy.

I would be concerned with evacuating from a remote hiking trail on a shore excursion to the local hospital.  I do understand the confusion 

 

Here is a brief article I read, in the final paragraph it touches on the gifted insurance issue. https://www.insuremytrip.com/insuring-your-trip/travel-as-gifts/

[Babr]

Gifted insurance and gifted travel are two different things. And paying with discounted gifts cards is yet another. I thought your original question was about getting reimbursed by insurance when paying with gift cards.

 

In any of these situations, you can get insurance; however, you must have documented trip cost to get cancellation/ interruption coverage.