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?

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

I told her about this thread and she called up and spoke to someone just there who have told her that she is covered for financial loss but only for people insured on her policy

Ah how annoying, as if shed known that then she could have perhaps claimed when her husband couldnt travel I suppose.

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?

Yes it does mean exactly that. Personal travel insurance almost always totally excludes business travel. You should be insured for business travel by your company and should look into this immediately.

Was your BIL covered by your sisters policy before the name change?

Only thing you could try is going back to your ins company and showing them how youve incurred a financial loss, do you have a bank statement where you transferred the money to your sister for example?

I don't think any money was transferred and that's why insurance will not pay out

Why would you expect to be compensated financially for something you didn't finance.

Ah how annoying, as if shed known that then she could have perhaps claimed when her husband couldnt travel I suppose.

With hindsight we would have claimed for the trip just on her insurance without mentioning the name change.

Yes it does mean exactly that. Personal travel insurance almost always totally excludes business travel. You should be insured for business travel by your company and should look into this immediately. My policy specifically says it does cover business travel "Trip: Means any holiday, business or pleasure Trip or journey made by You within the area of travel" but what its saying now about financial loss is making me wonder if its missold. The marketing material states that its suitable for business travellers specifically

Why would you expect to be compensated financially for something you didn't finance. When I first learned to drive my Gran gave me her car as she had to stop driving, I insured it even though it was a gift because I had an insurable interest in it

My sister and I had been thinking of buying my Mum a trip for her and a friend next year for a milestone birthday but it won't be covered by anyones insurance if what I'm reading is right. She has year long insurance but it seems even if we booked insurance specifically for that trip if she doesn't pay for it herself she can't be compensated if something goes wrong.

From what I understood, insurance was to put you back in the position you were before something happened and that if we were to rebook the trip that would be a financial loss to me to pay for it

Your sister should still be able to claim on grounds that her husband wasn't able to travel due to illness, unless it only covers her, not both as a couple.

@miri1985

My sister and I had been thinking of buying my Mum a trip for her and a friend next year for a milestone birthday but it won't be covered by anyones insurance if what I'm reading is right. She has year long insurance but it seems even if we booked insurance specifically for that trip if she doesn't pay for it herself she can't be compensated if something goes wrong.

From what I understood, insurance was to put you back in the position you were before something happened and that if we were to rebook the trip that would be a financial loss to me to pay for it

I suspect what you should do in this situation is add your mum and her friend to your policy. Then if they can't go, you can claim on your policy as they are named on it (though check you don't need to be travelling with them).

If your friend had done this when you name changed - put you on her policy - then she would have been able to claim for you.

As is, you fall between two stools. Essentially by changing the name she removed liability for that part of the holiday from her insurers, but the cost of cancellation is not covered by yours because you have suffered no financial loss as a result. Had you become ill and needed to come home, that would have been covered I suspect, but not for the flights/accommodation that you didn't pay for.

Its made me think actually. DP usually books and pays for our flights, for example, but of course one is in my name. We have separate travel insurance, so this would suggest he would not be recompensed for the flight in my name if we had to cancel, and neither would I. Hm......

Your sister should still be able to claim on grounds that her husband wasn't able to travel due to illness, unless it only covers her, not both as a couple.

Someone posted up thread that he wasn't able to go due to illness but I never said that, hes self employed and had a lot of work on but wasn't ill. The travel insurance is in both of their names but won't cover it as they know the name was changed

Its made me think actually. DP usually books and pays for our flights, for example, but of course one is in my name. We have separate travel insurance, so this would suggest he would not be recompensed for the flight in my name if we had to cancel, and neither would I. Hm......

It ridiculous, travel insurance should put you in the same position regardless of who paid. Its going to come to a situation where people have to have multiple policies depending on who they're booking with

But they would only make good financial loss. So using your example of work, if you fell ill on a work trip you would be covered. But presumably if the trip was cancelled any refund would need to be claimed by the person who paid ...your employer.

Your sister is the one out of pocket here.

I would look into actual policy and get some proper advice. Which? have a money helpline, and you don't need to be a member to talk to them. I'd give them a ring.

Wait do you seriously think that is your company pays for a business trip and it gets cancelled, you can claim for the money?

Wait do you seriously think that is your company pays for a business trip and it gets cancelled, you can claim for the money?

Yes, I work for a small business, I would not keep the money I would return it to them or pay to rebook. I took out a policy that specifically mentioned business travel not understanding that it had to be personal financial loss rather than just financial loss.

I am not out to grift anyone or make a profit out of a trip being cancelled

Thanks @CarrotPuff thats a good idea, I'll call them tomorrow

Your business needs to be insured for the cost of your flights, and they wouls claim for the cost if there were any issues.

Your travel insurance including travel will probably cover you for unavoidable costs (hotels, food etc) that your work insurance probably wouldnt.

But no of course you cant claim the cost of flights that you have not paid for... Seems like an obvious fact. Do the companies just have to trust your good nature that you'll hand the money back to your employer? Dont be ridiculous. Whether the flight is in your name or not, your employer 'owns' that flight. A gift like an engagement ring is gifted and therefore you become the 'owner'

But also, i would imagine if you lost your engagement ring and yourself and your dp both tried to put in seperate claims then at least one of you would be told no...

The company you work for should have their own commercial travel policy, not just in case of cancellation but what about if you were injured or fired while on business.

There's no way you'd get a pay out& just be trusted you'd give the money back to you'd employer.

You are being unreasonable. Travel I Durance is to compensate for a financial loss or extra costs. You suffered from either, so there is no reason you should be compensated. They are not to know that you and your sister are close and you do intend to give her the money.

Its her financial loss, she should have claimed it back with the evidence that she paid for it.