AON Travel Insurance Policy Changes

[Ombud]

I have been informed that

Quote

On the earlier bookings, they were netting out the credits against the cruise fare so essentially you were paying the minimum cost of the plan.

 

But, Aon Affinity advised Princess that they still need to charge the direct percentage of the cruise fare going forward, regardless of how much the credits are.

So, the more recent bookings are going back to the regular charge, regardless of credits on file.

so is there a better alternative? My cruise fare is 100% covered with FCC.  

Edited September 11, 2020 by Ombud
My changes to the response are in red

[Cruise Raider]

1 hour ago, Ombud said:

I have been informed that

so is there a better alternative? My cruise fare is 100% covered with FCC.  

 

I predicted that would happen because the coverages is for so much more than just cancellation.  Your alternative is to book a 3rd party insurance but, it will probably be more.  Even with that, how would you be reimbursed in the event of cancellation?  Essentially, it looks as though you'd just be asking for medical and emergency evacuation insurance .... plus a few other covered items. It's going to remain tricky for a couple of years until everyone has used up their FCCs from all the previous cancellations.  Who knows, maybe you will be covered for the base costs of what it took to get all the FCCs?  

[Babr]

2 hours ago, Ombud said:

I have been informed that

so is there a better alternative? My cruise fare is 100% covered with FCC.  

Check out the travel insurance forum. Steve from TripInsuranceStore often answers questions there. In a recent post, he mentioned that some insurance companies he does business with will insure FCCs as payment for a cruise. That means you get full cancellation as well as medical and evacuation.

 

I don’t know the details or how the cost would compare, but he can help you.

[NavyVeteran]

You can't have it both ways:

• Purchase trip insurance that covers the full cost of cancellation, including FCCs that are lost. Then you should expect the insurance cost to be based on the full cost of the cruise.
• Purchase trip insurance that covers only the cash cost of cancellation and does not include reimbursement for lost FCCs. Then you should expect the insurance cost to be based on the cash cost of the cruise.

In my opinion, either of these two options is reasonable, as long as the insurance company is very clear about what is covered. If you want coverage for lost FCC, then don't purchase insurance that doesn't cover it.

 

It is not reasonable to expect an insurance company to charge you based only on the cash cost (without including FCC) and then to reimburse you if you cancel for a covered condition for the full cost (including FCC). You would then be getting coverage without paying for it.

 

If the insurance now covers lost FCC and it did not cover it before, then I would consider the change to be a positive change for the customer - not a negative one. A lot of people don't read the fine print and would be very unhappy to use their FCC because of cancellation for a covered condition and not receive any reimbursement for it.

Edited September 11, 2020 by NavyVeteran

[Ombud]

Per policy:

Payments  or  Deposits means  the  cash,  check,  or  credit  card  amounts  actually  paid  for  Your  Trip.  Payments  made  in the  form  of  a  certificate,  voucher  or  discount  are  not  Payments  or  Deposits  as  defined  herein.

 

So I'm not insuring FCC just taxes, fees, port expenses

[Babr]

1 minute ago, Ombud said:

Per policy:

Payments  or  Deposits means  the  cash,  check,  or  credit  card  amounts  actually  paid  for  Your  Trip.  Payments  made  in the  form  of  a  certificate,  voucher  or  discount  are  not  Payments  or  Deposits  as  defined  herein.

 

So I'm not insuring FCC just taxes, fees, port expenses

There are now policies that will let you insure FCCs if you want to. If not, why are you insuring taxes, fees, and port expenses. Aren’t these refundable?

[Ombud]

@Babr THANK YOU thats my point! I automatically stick on the insurance. But why did the insurance costs stay the same after paying off cruise fare with FCC?  Will try to find Steve from Travel Insurance and ask him

[Babr]

4 minutes ago, Ombud said:

@Babr THANK YOU thats my point! I automatically stick on the insurance. But why did the insurance costs stay the same after paying off cruise fare with FCC?  Will try to find Steve from Travel Insurance and ask him

That’s my best advice since I’m not sure of what you are trying to do.

 

I do know that in the past, it was not possible to insure FCCs for cancellation as indicated in the language you quoted from a policy. If you had to cancel, you lost the value of the FCC no matter what you initially paid.

 

Apparently, that is no longer the case for some third-party insurers.  Ask Steve at TripInsuranceStore.com. A quick Google search should do it.

[cherylandtk]

If I read this correctly,  AON wants Princess to calculate the insurance cost based on the full fare price even when that price is paid via FCC...yet AON will not include the value of FCC used for payment in any reimbursement claim.

 

If that’s the case I can think of a few state insurance commissioners who would be Very interested in that sort of behavior.
 

As a consumer, I would also stop purchasing AON insurance if using FCC; third party insurance would cost significantly less for the same coverage.  

[Ombud]

On my cruise booked in July Princess insurance is $39. On my cruise booked a month later the same insurance is $199. FCC covers 100% of the cruise fare. To make matters more complicated,  FCC refunds to the account no matter when cruise is cancelled unless it is past expiration date. 

 

I don't think I need insurance despite habitually including it 

Edited September 12, 2020 by Ombud

[Lucky TGO]

1 hour ago, Ombud said:

On my cruise booked in July Princess insurance is $39. On my cruise booked a month later the same insurance is $199. FCC covers 100% of the cruise fare. To make matters more complicated,  FCC refunds to the account no matter when cruise is cancelled unless it is past expiration date. 

 

I don't think I need insurance despite habitually including it 

Hi Ombud,

I just like to tell you don’t go on a cruise with out Insurance. I don’t care who you purchased it from. My wife got sick on a cruise in 2014 on the Emerald Princess. From the time she got sick on the ship until we got home the cost was a little over $10,000. dollars.

It was a good thing we had insurance. Just one other thing if your out of the USA and have Medicaid your NOT covered.

We were in the Caribbean and had to get off the ship in Grenada. That’s another story OMG don’t get sick in Grenada!!!!!

Tony 

[Ombud]

Tony, wow you went through the ringer!! Who covered medical care on the ship?

 

My cruise is to Alaska so the 'reasonable person' rule should apply on land at least making my HMO the primary coverage. Alaska & BC health care should be leaps and bounds better than Grenada. I'm waiting to hear back from USAA because I don't trust their pricing ($41 vs $471) and from AON regarding whether there are any policy changes that don't show online (are FCCs paid out if canceled under CFAR). The kids' FCC only covers 1/2 their cruise fare so i want to insure that 

Edited September 12, 2020 by Ombud

[coo359a2]

Based on all the above comments, I think I now know why my Princess insurance dropped in price so much on one of my newer bookings.  I  had refared the booking  and saved $600+ and then had $3000+ FCCs applied to the booking.  Out of pocket cost will now be approximately $2500..  Princess insurance is now $250 less after the refare and FCCs were applied. If I have figured correctly, Princess insurance is only covering out of pocket cost  which Navy Veteran's explanation of why insurance is lower.  It will be interesting to see if this holds true  when my  remaining $4000+  FCCs are applied to current bookings.

[Babr]

6 hours ago, Ombud said:

Tony, wow you went through the ringer!! Who covered medical care on the ship?

 

My cruise is to Alaska so the 'reasonable person' rule should apply on land at least making my HMO the primary coverage. Alaska & BC health care should be leaps and bounds better than Grenada. I'm waiting to hear back from USAA because I don't trust their pricing ($41 vs $471) and from AON regarding whether there are any policy changes that don't show online (are FCCs paid out if canceled under CFAR). The kids' FCC only covers 1/2 their cruise fare so i want to insure that 

Insurance covers you both on the ship and on land. You have to pay out-of-pocket when you settle your account then file a claim for reimbursement. 

[whatcruiseisnext]

7 hours ago, Lucky TGO said:

Hi Ombud,

I just like to tell you don’t go on a cruise with out Insurance. I don’t care who you purchased it from. My wife got sick on a cruise in 2014 on the Emerald Princess. From the time she got sick on the ship until we got home the cost was a little over $10,000. dollars.

It was a good thing we had insurance. Just one other thing if your out of the USA and have Medicaid your NOT covered.

We were in the Caribbean and had to get off the ship in Grenada. That’s another story OMG don’t get sick in Grenada!!!!!

Tony 

Medicaid? Should you be cruising if you have Medicaid? Except in rare instances Medicaid is for those in poverty level. 

[Coral]

8 hours ago, Lucky TGO said:

Hi Ombud,

I just like to tell you don’t go on a cruise with out Insurance. I don’t care who you purchased it from. My wife got sick on a cruise in 2014 on the Emerald Princess. From the time she got sick on the ship until we got home the cost was a little over $10,000. dollars.

It was a good thing we had insurance. Just one other thing if your out of the USA and have Medicaid your NOT covered.

We were in the Caribbean and had to get off the ship in Grenada. That’s another story OMG don’t get sick in Grenada!!!!!

Tony 

You probably mean Medicare.

[Babr]

11 hours ago, cherylandtk said:

If I read this correctly,  AON wants Princess to calculate the insurance cost based on the full fare price even when that price is paid via FCC...yet AON will not include the value of FCC used for payment in any reimbursement claim.

 

If that’s the case I can think of a few state insurance commissioners who would be Very interested in that sort of behavior.
 

As a consumer, I would also stop purchasing AON insurance if using FCC; third party insurance would cost significantly less for the same coverage.  

That is the way I read it, too.  The OP added more information on the Travel/Cruise Insurance forum. She said she would owe 100% cash if she were to cancel, but the FCC would be returned. That sounds like a 100% cancellation fee. In other words, no cancellation coverage except for another FCC. I’ve never heard of such an arrangement. Maybe this is something Princess and Aon are doing in the wake of all the Covid cancellations. 
 

If that is the case, it seems to me that puts the OP right back where she started minus the cost of a cruise she didn’t take if she were to cancel. She’d have to pay for cancellation and end up with the FCC she had in the first place.

Am I getting this right?

 

 

Without insurance from a third-party insurer that will recognize FCCs as a form of payment, the OP is putting herself at risk for cancellation fees and excess medical costs. Everyone has to determine for himself how much risk is acceptable, but first one must understand what the risk is.

Edited September 12, 2020 by Babr

[Ombud]

Yes, I meant if I cancel I would owe  $200 up to 100% of total charges if canceled after final payment

[cherylandtk]

No small part of the confusion seems to be whether FCCs are now fully returnable (or refundable). This is new territory for most of us, as past FCCs were “use ‘em or lose ‘em” with no cash value.
 

Covid FCCs are a mix of refundable (cash value) and non-refundable (no cash value) depending on what Option was offered and what each passenger chose.  From what is posted above, it seems that Aon is considering them all to be ‘just like cash’ and refundable, yet has not changed their policy DOC to reflect that they are a covered method of payment.

 

Given the recent history of major disconnects between what the cruiseline says vs. what actually happens, I would have to recommend that anyone purchasing travel insurance do so with the help of an independent qualified broker who can explain what is being purchased.  
 

The final result will be that any insurance company will only pay for what is specifically mentioned in their DOC.  What anybody at Princess or Aon says on the phone is useless.

 

[NavyVeteran]

16 minutes ago, cherylandtk said:

No small part of the confusion seems to be whether FCCs are now fully returnable (or refundable). This is new territory for most of us, as past FCCs were “use ‘em or lose ‘em” with no cash value.
 

Covid FCCs are a mix of refundable (cash value) and non-refundable (no cash value) depending on what Option was offered and what each passenger chose.  From what is posted above, it seems that Aon is considering them all to be ‘just like cash’ and refundable, yet has not changed their policy DOC to reflect that they are a covered method of payment.

 

Given the recent history of major disconnects between what the cruiseline says vs. what actually happens, I would have to recommend that anyone purchasing travel insurance do so with the help of an independent qualified broker who can explain what is being purchased.  
 

The final result will be that any insurance company will only pay for what is specifically mentioned in their DOC.  What anybody at Princess or Aon says on the phone is useless.

 

Even a refundable FCC becomes fully or partially non-refundable once it is applied to a cruise and it is past the penalty period (around final payment). If you cancel a cruise during the penalty period, the cruise line will keep 25%, 50%, 75%, 100%, or whatever the cancellation penalty is for your cancellation date. This applies whether it was paid with cash, with refundable FCC, or with non-refundable FCC.

 

I refused the extra 25% FCC and took cash on a recent cancelled cruise (with Viking - not Princess - although I suspect it would be similar), even though I will probably rebook within the next couple of years, because the FCC became nonrefundable once I rebooked and its value was not covered by the travel insurance if I cancelled for a covered reason. I felt more comfortable taking the cash and possibly rebooking with everything covered by travel insurance.

 

I strongly agree with the recommendation that you need to carefully read (and keep a copy of) the policy documentation from the insurance company. I would assume it does not cover FCCs unless it clearly states that it does.

[Lucky TGO]

4 hours ago, Coral said:

You probably mean Medicare.

Hi Coral,
l’m sorry you are Correct. If you have MEDICARE Health Insurance you are NOT  Covered. 
Tony

4 hours ago, Coral said:

 

[Lucky TGO]

5 hours ago, whatcruiseisnext said:

Medicaid? Should you be cruising if you have Medicaid? Except in rare instances Medicaid is for those in poverty level. 

Hi whatcruiseisnext,

My Sorry I meant to say MEDICARE Health Insurance. 
Tony