Travel Insurance Won't Cover Value of Compass Rewards Certficates

[roboref]

I did a search before posting this and didn't find any dialogue about trip insurance and covering the value when using Compass Certificates.

 

After booking the NCL Jade Nov. 6, 2008 I went to an Travel Insurance comparison site, (same company I had used last year) and was reviewing the FAQ's. It stated that only "cash out of pocket" was reimbursable:

 

"Count frequent flyer tickets, award travel, vouchers, reward points & credit card miles as a $0 trip cost. The value is not equal to the money you save by using them. Your trip cost is only the taxes you pay when you exercise them."

 

First I thought this was only referring to airline tickets, but then saw the "vouchers and rewards points" part and so I decided to call and verify with them that what I was doing with the Certificates was insurable. The agent who seemed quite knowledgeable stated "absolutely not insurable" only "out of pocket" expenses were covered as I had not "paid" for these. I tried to explain the nature of payment, just like a "check or Credit card". The value of the cruise would be lost including the "total value" not just the deposit to no avail. I then emailed the president of the company which I am waiting for a response.

 

I received this email in response:

 

Hi Ron,

Thanks for writing.

 

Unfortunately, the fact that travel insurance plans do not insure the "value of the trip"but just the actual money / cash paid directly for any non-refundable prepaid trip cost is not my rule. It's how all travel insurance plans work. The problem for the traveler is not with the travel insurance - it's with the credit card company. In the case of frequent flier miles, many airlines have a provision in their program that lets the customer re-deposit the miles back into their account if they are not used. I don't know why the credit card companies refuse to do the same for their customers. Coincidentally, I do have a NCL Mastercard. I got it after our Jan. 2006 cruise on the NCL Sun. And I'm using it to build up a cruise credit, too. I hope this makes sense.

 

Kindest regards,

 

Name Deleted

 

 

I then called the insurance company that was quoted through the TA for the cruise portion of insurance and spoke with an agent and a supervisor and they both said only "out of pocket" cost was insurable and reimbursable, not the value of the Award, voucher, or certificate.

 

Bottom line is that I am quite upset as my parents are not in great health nor is my DW in great health and I really want to purchase insurance, but as it stands now all I can get coverage for is the $500 deposit, airfare and prepaid hotel lodging.

 

Can someone please suggest options or an insurance company who might cover this, as after reading numerous contracts (my eyes are blurring) and talking with several agents it is my conclusion that we are all taking the risk when using these points that we will lose them if the trip is canceled after the final payment date or a lot of us are incurring extra expense for coverage that will not replace what we think it will.

[VoyageVirgin]

From what I have experienced using points to book rooms etc - they are not covered because you are not out of pocket - so we leave the cost off the insurance and hope for the best. Now, if you are using the "Certificate" for your total cruise cost I would certainly be asking NCL M/C

about the possibility of insuring for a credit towards your points if cancellation trip interruption etc are necessary. I've been trying for years to use Airmiles points and believe me the restrictions are not worth the effort - no one way flights - this hotel is full - after finally booking hotel stays this time they said up front that the points were not refundable if I had to cancel etc. I'm assuming your travel insurance is booked with NCL -correct me if I'm wrong. Did you pay your insurance fee for the full cost of the trip? Including the Certificate?

[roboref]

Further information, I can only purchase insurance to cover the cost of the non-refundable airfare, hotel and auto rentals, not the $1500 Compass Reward certificates I will be using.

 

So my understanding is no coverage is available if even for a covered reason, the trip is canceled, you are just out of luck on the value of the Compass Rewards. They are gone!!

[Planer's Edge]

I would find a different insurance provider. I canceled a cruise, a few years ago, after final payment. Part of my payments included $1,500.00 worth of Compass Rewards certificates. There was no questions asked about "money out of pocket" just how much did I pay for the cruise and other expenses.

 

Besides if you think about it, you earned these certificates and NCL treats them as cash. So, why would any insurance provider think that they were not "money out of pocket"?

 

PE

[Dolphins]

I would find a different insurance provider. I canceled a cruise' date=' a few years ago, after final payment. Part of my payments included $1,500.00 worth of Compass Rewards certificates. There was no questions asked about "money out of pocket" just how much did I pay for the cruise and other expenses.

 

Besides if you think about it, you earned these certificates and NCL treats them as cash. So, why would any insurance provider think that they were not "money out of pocket"?

 

PE[/quote']

 

Since the insurance premium is based on the total cost of the cruise, that amount should be remibursed if the cruise is cancelled. If not, then the Cruise Rewards should be deducted from the total cost of the cruise when the premium is established.

[Planer's Edge]

Since the insurance premium is based on the total cost of the cruise, that amount should be remibursed if the cruise is cancelled. If not, then the Cruise Rewards should be deducted from the total cost of the cruise when the premium is established.

 

Huh!!:confused:

 

You should be insuring the total cost of the cruise. If you choose to only insure the portion that you paid for after using the certificates, you are only cheating yourself.

 

PE

[roboref]

I've been searching all day for someone to cover Compass Rewards. I agree with Planer's Edge that it is certainly has "cash value" to me. But every agent I spoke with today said that if a claim is filed they will require an invoice in event of loss to establish "out of pocket" expense or "cash value" and since I couldn't prove purchasing these Certificates, but that they were awarded on purchases, then I would not be reimbursed for the value other than my initial deposit would not be covered.

 

If you know of a company that will cover please let me know. I have gone to several aggregator sites and when specifically asked about coverage all have said no. I just wanted to let other cruisers know what I had run into, so that you are not paying for coverage on something the insurance will not pay out for and secondly, to find out if anyone knew of a company who will cover Compass rewards.

[Planer's Edge]

I wish I could state the name here. But if you search Insure My Trip . com the two most popular providers don't give a rat's patoot if you are using Compass Rewards or not. These are the only providers I will use because I don't shop for insurance with a low price in mind. I know I get what I pay for.

 

PE