Travel insurance not paying out for holiday that was gifted

[miri1985]

Back in the good old days when we could still go on holidays, my sister whos husband wasn't able to go on a trip offered that I could go instead and just pay the name change fee, it was terribly nice of her and I took her up on the offer. Due to a death in the family the trip didn't go ahead.

I have year long travel insurance and I filed a claim with them for the cost of the holiday and the name change fee, provided them with all the death certs etc., I assumed it would be no problem, my sister is with a different company and got the money back asap. Then Covid hit and I hadn't heard back which was understandable.

I have just heard back that they won't cover me for anything but the name change fee because the policy states I'm only covered for "financial loss". As I didn't pay for the trip myself the only financial loss I suffered as a result of not being able to go on the trip was the name change fee. Is this right? Are gifts not insurable?

I feel like I'm missing something - sister paid for holiday, her insurance paid out so she's covered. You paid for name change, your insurance covered that cost. What costs are you out of pocket for??

No one can answer that without reading your policy in full. However I would assume financial loss would include gifts, because they have a monetary value.

I'd have thought your sister should be claiming from her insurance for her husband not being able to go, as it's their financial loss not yours.

You would only perhaps have a claim if you had re-imbursed your sister for the cost of her husbands holiday and could prove that you had in fact incurred that financial loss.

I think you're a bit cheeky tbh!!

what does your policy say, do you think you should be refunded for a holiday you didn't pay for?

why would you expect 2 payouts?

my sister is with a different company and got the money back asap
or is that for her ticket?

I dont know about the gift - but if the policy states I'm only covered for "financial loss" then thats all you are covered for.

If she got the money back for the full amount she paid, then why would you claim too?

If she only claimed for her part, she needs to also claim for her husband.

If you didn't pay for your holiday then why would your insurance reimburse you?

I dont think she can claim for the husband, possibly.... but as the name has been changed, then unlikely - might be worth a go

Surely the person who paid the full cost of the holiday is the person who claims on the insurance

Your post isn't clear - where you going instead of your sister or with her?

Aside from the name change fee who is currently out of pocket?

OP was going instead of her sister's husband but only paid out for a name change.

Clearly there should be no double-dipping. But I can imagine this ending in trouble with both insurers saying it's not their job to compensate for your ticket.

@dementedpixie

OP was going instead of her sister's husband but only paid out for a name change.

Back in the good old days when we could still go on holidays, my sister whos husband wasn't able to go on a trip offered that I could go instead and just pay the name change fee

She doesn't say she was going instead of the husband though, she says the sister couldn't go because her husband was ill, he may never have been going in the first place. You could be right but you can't be sure from the OP.

Without knowing this we can't make a judgement

My sister claimed for the cost of her flights and accommodation from her insurance. I claimed for the cost of my flights and accommodation from my insurance as I had changed the name on the flights to mine when we were still expecting to be able to go. I provided my insurance with a copy of my sisters claim when they requested it.

The holiday was booked for my sister and her husband, he wasn't able to go so we changed the name with the travel company to mine, I was intending to travel with her but our Father died 2 days before we were due to go.

Presumably you haven't paid for flights or accommodation therefore that's why you can't claim those costs back.

If your sister paid the full amount of the holiday then surely she should have claimed the full amount from her insurance?

She doesn't say she was going instead of the husband though, she says the sister couldn't go because her husband was ill, he may never have been going in the first place.

That's not what she said at all. She said her sisters husband couldn't go and her sister said she could go instead.

Why do you think you should be compensated for something you haven't paid for?

Your sister or her husband should have claimed for the flights and accommodation you would have used.

@TerrapinStation she said her sisters husband couldn't go and she was going in his place

But you didn't pay for the holiday, she did so it's for her insurance company to pay out.

Who paid for your BIL flight? If it's your sister, she should claim from her insurance.

Insurance in this case covers your financial loss. Your financial loss is the change of name fee.

I assume your brother in law or sister in law paid for the flight and accommodation. They should claim on their insurance as they suffered these financial losses.

Why do you think you should be compensated for something you haven't paid for?

I didn't pay for my engagement ring but I would expect my insurance company to pay me for it if it was stolen. Lots of insurance policies are on things people didn't pay for but have an insurable interest in.

But you didn't pay for the holiday, she did so it's for her insurance company to pay out.

I assumed since I am not a named person on her insurance that they would not reimburse her for my trip. Obviously I was mistaken given the responses.

Does this also mean that I am not covered by my insurance when I travel for business given that I don't pay for those trips myself?

Had a similar issue before. Holiday booked for two of us that I had paid for in full, I guess you could say it was a gift as it was for my partners birthday. Bereavement the day before we were due to leave and so we didn’t go. My partner has travel insurance as part of his bank account, so I usually just renew an annual policy to cover only myself. I submitted the claim for the full amount, but only received a refund for my share as they will only pay out for the person named on the insurance. His insurance were reluctant to refund his share but eventually did! I suppose the difference here is that there was no name change along the way as he was always named as a traveller, but I think it should be your insurance that pays out rather than your sisters.

Has she spoken to her insurance company to check? That would be my first step.