AON Travel Insurance Policy Changes

[Ombud]

I automatically stick on the insurance.   My policy states "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. Which is fine but the insurance costs stayed the same after paying off cruise fare with FCC?

 

When I asked my PVP I was informed that:

"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. 

 

 

[Babr]

Great! You found the right forum, but it might be a while before Steve sees this.

 

Let me give it one more shot. It seems to me that the question is whether Aon will reimburse you for the FCC if you cancel. It appears not from the language you quoted. You are paying for some travel benefits, medical, and evacuation but you are not getting any coverage for cancellation. If you cancel, you will will not be reimbursed for the value of the FCC.

 

It seems to me that a better value would be to insure your trip with a third-party insurer that will recognize the FCC as a form of payment. If time is of the essence, seek out Steve directly rather than waiting for the next time he drops by this forum.

 

I think Aon could no longer charge the lower rate because it is not profitable. It sounds like a business decision to me. They may have made some allowance for credits earlier because of the unusual circumstances, but they can’t sustain that.

Edited September 11, 2020 by Babr

[Ombud]

It gets more convoluted.  According to a 1800 princess rep, I'll get my FCC back regardless.  So I'm paying $199pp to cover what? She checked with her supervisor and I'll get taxes, fees, and part expenses back but owe 100% of the cash I pay for cruise fare (?)!!

 

So I went to USAA Trip Insurance and they want $41 total but might not cover Covid-19. That policy is only available if buying within 30 days of making trip deposit. (They match the Insurance costs for the TA so I'll keep that). I've asked them to call me because the online form wanted to know if I was paying with my USAA CC. 

[Babr]

I don’t understand what you mean by owing 100% of cash. It sounds like a 100% cancellation fee. It amounts to having no cancellation coverage. The FCC rolls forward. That may be OK if you can use it eventually.
 

The premium you are paying to Aon is for the other travel benefits such as trip delay or trip interruption, lost bags, etc. The biggest benefit is the medical and evacuation coverage because that is your biggest risk. Be sure to compare coverage limits for medical and evacuation when looking at other policies. What do you want to insure? What are you getting for  $41? Will USAA insure the FCC? What about Covid?

 

I still think it would be a good idea to speak to an independent broker like Steve because he can help you find the right coverage. He represents several companies.

[cherylandtk]

I agree it makes sense to speak with an independent broker like Steve.  There appears to be some sort of missing bit of information from the DOC document about what is or is not covered by Aon and whether FCCs are returnable and/or insurable by them.

[Hlitner]

There is more to most trip insurance then just the cost of the cruise.  Many policies also give you some coverage for medical, evacuation, and reimbursement of some costs for interruption or delays.  Whether the typical cruise line or Aon policies are currently worth the money is a topic open to debate.  Just keep in mind that it is possible to buy some types of insurance, such as travel medical, without spending the big bucks for cancellation that may not even be covered.''

 

Speaking of FCC, I can understand why insurance companies have some issues.  Cruise lines have been giving out FCCs like they are water and in many cases they are giving FCCs are substantial multiples for what was originally paid.  If an insurance company were to pay cash claims for lost FCC it would be possible for a cruiser to make a nice profit on some claims.  Consider a person who paid $5000 for a cruise that was later cancelled by a cruise line who then offered $10,000 in FCCs.  If that same cruiser later filed a claim because they lost the $10,000 FCC the cruiser would have actually doubled their money (less the insurance premium).  Most insurance companies frown on policy holders making a profit.

 

Hank