Travel Insurance Coverage

[powlan]

In light of Covid we just cancelled our March 18 TA Mia/Lis cruise. After cancelling all the air, hotels, house sitters and the cruise itself I called the agency that issued our travel insurance policy They told me that we could extend the policy to cover another trip up until 12/2023. I asked about a refund of the premium. They said that it would have to be for a medical reason and a doctor would have to sign the document. Since "fear" of Covid is not considered a medical reason If we wanted the premium refunded we would have to show that we had tested positive and were under quarantine and as a result couldn't take the cruise.  This last option they were a bit muddy on but since neither myself nor my wife, have or ever had Covid, are triple vaxxed, and have never been tested positive we think that we'll probably go for an extension rather than try for the refund. We don't have CFAR (Cancel For Any Reason) insurance. 

 

[brittany12]

Powlan—You are in the serious penalty phase for this cruise and since  you have no CFAR, its a lot of lost money. I think 75%, about to have gone up to 100% in another week or so. I guess you decided the risk of COVID or just a lousy cruise was just too great and you are just walking away.  Refund of premiums or its transferred use the cheap part. Nice to know they will transfer the premium for two years out.

[AlexCherie]

3 hours ago, powlan said:

In light of Covid we just cancelled our March 18 TA Mia/Lis cruise. After cancelling all the air, hotels, house sitters and the cruise itself I called the agency that issued our travel insurance policy They told me that we could extend the policy to cover another trip up until 12/2023. I asked about a refund of the premium. They said that it would have to be for a medical reason and a doctor would have to sign the document. Since "fear" of Covid is not considered a medical reason If we wanted the premium refunded we would have to show that we had tested positive and were under quarantine and as a result couldn't take the cruise.  This last option they were a bit muddy on but since neither myself nor my wife, have or ever had Covid, are triple vaxxed, and have never been tested positive we think that we'll probably go for an extension rather than try for the refund. We don't have CFAR (Cancel For Any Reason) insurance. 

 

My wife and I are triple vaxx, and we live in almost isolation. Our cruise is Tuesday.

Within the last 24 hours our bodies indicate we have Omicrom. Unfortunately, perhaps the likelihood of this smaller problem for you is about to go away. 

 

[njhorseman]

2 hours ago, brittany12 said:

You are in the serious penalty phase for this cruise and since  you have no CFAR, its a lot of lost money. I think 75%, about to have gone up to 100% in another week or so

That's incorrect. The OP is on a 10 day cruise that departs in 78 days...in fact when the OP cancelled it was at least 79 days prior to embarkation. The cancellation penalty, while not insubstantial, was 25% of the fare, not the 75% you stated:

https://www.oceaniacruises.com/legal/terms-conditions/

 

DAYS PRIOR
TO CRUISE SAIL DATE - CANCELLATION AMOUNT

• 91-120 Days Prior - $250 per person administrative fee++
• 76-90 Days Prior - 25% of Fare
• 61-75 Days Prior - 50% of Fare
• 31-60 Days Prior - 75% of Fare
• 0-30 Days Prior - 100% of Fare

[Flatbush Flyer]

7 hours ago, powlan said:

In light of Covid we just cancelled our March 18 TA Mia/Lis cruise. After cancelling all the air, hotels, house sitters and the cruise itself I called the agency that issued our travel insurance policy They told me that we could extend the policy to cover another trip up until 12/2023. I asked about a refund of the premium. They said that it would have to be for a medical reason and a doctor would have to sign the document. Since "fear" of Covid is not considered a medical reason If we wanted the premium refunded we would have to show that we had tested positive and were under quarantine and as a result couldn't take the cruise.  This last option they were a bit muddy on but since neither myself nor my wife, have or ever had Covid, are triple vaxxed, and have never been tested positive we think that we'll probably go for an extension rather than try for the refund. We don't have CFAR (Cancel For Any Reason) insurance. 

 

Not sure what is your point.

In any case, CFAR applies to the trip cost not the insurance itself. If you read your policy docs, it most likely doesn’t offer refunds if you cancel the cruise. 
However, many insurers will allow you to transfer a policy to a future cruise if you have not begun the currently insured trip nor made any pre-trip claims (like coverage of cruise/airline/etc penalty fees for your decision to cancel. So, in most cases, that’s your best outcome.

[njhorseman]

7 hours ago, powlan said:

I asked about a refund of the premium. They said that it would have to be for a medical reason and a doctor would have to sign the document.

I think you misunderstood what you were told. If there were a medical reason substantiated by a physician for cancelling the cruise you would file a claim with the insurer for reimbursement of any cancellation penalty imposed  by the cruise line, not for a refund of your premium.

 

Under normal circumstances premiums are non refundable after the "free look" period, which typically extends for 10 to 15 days after you purchase the policy. Past that free look the common practice is for the insurer to give you credit toward the purchase of a future policy, which is exactly what occurred in your case.

Edited December 31, 2021 by njhorseman

[LHT28]

7 hours ago, powlan said:

 we think that we'll probably go for an extension rather than try for the refund. We don't have CFAR (Cancel For Any Reason) insurance. 

 

better than losing you money 😉

 

[jazznruby]

2 hours ago, njhorseman said:

That's incorrect. The OP is on a 10 day cruise that departs in 78 days...in fact when the OP cancelled it was at least 79 days prior to embarkation. The cancellation penalty, while not insubstantial, was 25% of the fare, not the 75% you stated:

https://www.oceaniacruises.com/legal/terms-conditions/

 

DAYS PRIOR
TO CRUISE SAIL DATE - CANCELLATION AMOUNT

• 91-120 Days Prior - $250 per person administrative fee++
• 76-90 Days Prior - 25% of Fare
• 61-75 Days Prior - 50% of Fare
• 31-60 Days Prior - 75% of Fare
• 0-30 Days Prior - 100% of Fare

I'm on the same MIA-LIS, March 18th cruise (with no plans to cancel.) Final payment date was extended to 60 days prior, January 17th. Cancellation penalties waived until then.

[jazznruby]

16 minutes ago, jazznruby said:

I'm on the same MIA-LIS, March 18th cruise (with no plans to cancel.) Final payment date was extended to 60 days prior, January 17th. Cancellation penalties waived until then.

Just occurred to me though...if OP already paid in full prior to extension, is there a cancellation penalty??

[powlan]

We have until January 17 which is 60 days prior to what would have been our departure on March 17 which allows us to cancel without penalty. We have that communication, in writing from Oceania and several people on this board. Actually, it's not on this board but rather on the Oceania Roll Call board.

25 minutes ago, jazznruby said:

Just occurred to me though...if OP already paid in full prior to extension, is there a cancellation penalty??

 

[powlan]

Only paid $750/pp which they or may not keep as an administrative fee. Probably not. As JAZZNRBUBY mentioned, Oceania changed their cancellation policy to from 90 days out to 60 days out. They don't even have our credit card.

 

Just spoke with Oceania (2x). It was 90 days to cancel without penalty but on December 6 they changed their policy to 60 days. They also emailed this to the travel agents.(which is how we found out at first) They also stated that they would refund the full amount of the $750/pp deposit. Regarding getting an insurance premium refund, it is correct that we would have to have a doctor sign off for medical reasons. We had to do it once before for an illness and there was lots and lots of paperwork but our premiums were refunded. I guess the two major points I was trying to make were that Oceania changed their full cancellation without penalty  from 90 days to 60 days and you can switch insurance dates on a trip prior to departure date until 12/2023.

[njhorseman]

1 hour ago, jazznruby said:

I'm on the same MIA-LIS, March 18th cruise (with no plans to cancel.) Final payment date was extended to 60 days prior, January 17th. Cancellation penalties waived until then.

OK...that puts things in a different light. But it still doesn't change the fact that insurance premiums  are  generally non refundable once the free look period has expired. Death or illness of the insured may be an exception to that rule but otherwise after the free look all you can expect to get is a credit towards a future insurance policy purchase.

Edited December 31, 2021 by njhorseman

[Flatbush Flyer]

2 minutes ago, njhorseman said:

OK...that puts things in a different light. But it still doesn't change the fact that insurance premiums  are  generally non refundable once the free look period has expired. After that time you get a credit towards a future insurance policy purchase.

This.

[powlan]

Flatbush Flyer - Right you are on both counts. Assuming I'm healthy, the insurance companies generally will not refund their premiums. However, when I called them (insurance company) two different people at two different times stated that if I wrote them an email stating that I wanted an "exemption", because of Covid it's possible they would grant me one and refund the premiums. I figured nothing ventured nothing gained. If they say no then I'll go with the credit towards a future insurance policy purchase. I apologize to all if I've been too confusing but I think my fingers were typing faster than my brain. Oh well, don't hate me.

 

[jazznruby]

14 minutes ago, njhorseman said:

OK...that puts things in a different light. But it still doesn't change the fact that insurance premiums  are  generally non refundable once the free look period has expired. Death or illness of the insured may be an exception to that rule but otherwise after the free look all you can expect to get is a credit towards a future insurance policy purchase.

Actually, when I asked my insurance broker which happens to be the same that powlan uses, this  question couple of weeks ago, his response is below. I was really wanting to know if same criteria applies if O cancels, since we have no intention of canceling. Awaiting his reply.

 

If you cancel your trip, and can send us documentation that all trip costs and deposits were refunded to your credit card in full, and you have absolutely no cancelation penalties, and you have not taken a credit for a future trip, we can generally get the insurance company to cancel and refund the policy.  If you have any cancellation penalties for cancelling cruise, tour, airfare, or hotels, or are given a credit for a future trip they will not cancel the plan and refund the premium because of the implications of state insurance laws.   

 

If you received travel credits for a future trip, we can modify travel dates in your insurance to transfer it to a future trip.  Your new trip must start within 2 years from the day you purchased your travel insurance plan.  If you need some time to book, we can leave the policy open and make those changes for you later.  

 

So, powlan, you should try for the refund, or at least get it further clarified by the broker.

 

[jazznruby]

2 minutes ago, jazznruby said:

Actually, when I asked my insurance broker which happens to be the same that powlan uses, this  question couple of weeks ago, his response is below. I was really wanting to know if same criteria applies if O cancels, since we have no intention of canceling. Awaiting his reply.

 

If you cancel your trip, and can send us documentation that all trip costs and deposits were refunded to your credit card in full, and you have absolutely no cancelation penalties, and you have not taken a credit for a future trip, we can generally get the insurance company to cancel and refund the policy.  If you have any cancellation penalties for cancelling cruise, tour, airfare, or hotels, or are given a credit for a future trip they will not cancel the plan and refund the premium because of the implications of state insurance laws.   

 

If you received travel credits for a future trip, we can modify travel dates in your insurance to transfer it to a future trip.  Your new trip must start within 2 years from the day you purchased your travel insurance plan.  If you need some time to book, we can leave the policy open and make those changes for you later.  

 

So, powlan, you should try for the refund, or at least get it further clarified by the broker.

 

And btw, it was signed by 'President and Founder'.

[njhorseman]

4 minutes ago, jazznruby said:

Actually, when I asked my insurance broker which happens to be the same that powlan uses, this  question couple of weeks ago, his response is below. I was really wanting to know if same criteria applies if O cancels, since we have no intention of canceling. Awaiting his reply.

 

If you cancel your trip, and can send us documentation that all trip costs and deposits were refunded to your credit card in full, and you have absolutely no cancelation penalties, and you have not taken a credit for a future trip, we can generally get the insurance company to cancel and refund the policy.  If you have any cancellation penalties for cancelling cruise, tour, airfare, or hotels, or are given a credit for a future trip they will not cancel the plan and refund the premium because of the implications of state insurance laws.   

 

If you received travel credits for a future trip, we can modify travel dates in your insurance to transfer it to a future trip.  Your new trip must start within 2 years from the day you purchased your travel insurance plan.  If you need some time to book, we can leave the policy open and make those changes for you later.  

 

So, powlan, you should try for the refund, or at least get it further clarified by the broker.

 

OK...my decades of experience in both the insurance and travel industries plus my personal experience as a cruiser who had to cancel a policy say otherwise... but I certainly haven't examined the policies of every insurance company.

No harm in trying .

Edited December 31, 2021 by njhorseman

[travelbug2225]

@powlanOur cruise is on March 28 after your cruise but my travel agent never said anything about the final payment has been changed to 60 days before the cruise.  
 
We already paid in full. Will we be able to get a full refund if we cancel if the final payment date is change?  If your cruise final payment date is on Jan 17 our should be on January 27. 

She said we book under the promotion that we can cancel up to 48 hours and get 100% future cruise credit but we have to cruise in 2022.  Our friends try to cancel but she not even mention about new final payment date. Or we are out of luck because we paid in full?