Bankruptcy Coverage when Cruise is Purchased on Ship

[rbslos18]

Would the following situation be covered?
 

During a cruise, a new cruise is booked and the deposit paid to the cruise line. The booking is then transferred to a travel agent. Insurance is purchased immediately.
 

After final payment the cruise company goes bankrupt. Would the travel insurance cover the lost funds?

[iamtrustworthy]

On 9/7/2023 at 7:21 AM, rbslos18 said:

Would the following situation be covered?
 

During a cruise, a new cruise is booked and the deposit paid to the cruise line. The booking is then transferred to a travel agent. Insurance is purchased immediately.
 

After final payment the cruise company goes bankrupt. Would the travel insurance cover the lost funds?

Hi rbslos,

 

It's not a simple answer. It depenids on a plan's definition of Supplier Frinancial Default, if it has a "Time Sensitive" purchase deadline and its waiting period.

 

Some plans require the travel supplier to cease operation, some only require filing a bankruptcy petition, some plans won't pay if the supplier offers travel credits (i.e. - Vantage Travel's new owner).

 

Do you have a specific example?

 

Steve Dasseos

[rbslos18]

2 hours ago, iamtrustworthy said:

Hi rbslos,

 

It's not a simple answer. It depenids on a plan's definition of Supplier Frinancial Default, if it has a "Time Sensitive" purchase deadline and its waiting period.

 

Some plans require the travel supplier to cease operation, some only require filing a bankruptcy petition, some plans won't pay if the supplier offers travel credits (i.e. - Vantage Travel's new owner).

 

Do you have a specific example?

 

Steve Dasseos

Steve,

I think the question is whether booking a cruise directly with the cruiseline voids the bankruptcy protection even if the booking has been transferred to a travel agency. 

Edited September 9, 2023 by rbslos18