VHI Travel Insurance issues

SilvaMuppet

Wondering if anyone has had to deal with VHI for travel insurance due to being stranded in another country where the flight was cancelled by the airline?

A friend had the situation where she was abroad with her kids and her partner. The airline (irish) cancelled the return flight on them while they were in the airport waiting to get home. With scheduling (airline's end) and what not they were unable to return until about 2 days later (bit over). So they had to stay a few extra days.

it was hard work but eventually the airline reimbursed them for a large chunk of the cost (this took a bit of time) of the extra stay. But she was looking to claim for a certain amount of extra expenses against her holiday insurance. (few hundred euro gap between what the extra few days cost them and what the airline was prepared to pay).

Her partner had his own VHI travel policy which he claimed on and they reimbursed without any problem. There was no complication or pushback.

But for her claim with the same underlying reasons (obviously different amounts due to the kids) they initially fobbed her off saying they weren't obliged to cover as the flight flew back within 12 hours or so of scheduled departure. This was obviously incorrect but it took numerous attempts for her to get VHI to accept that clearly it was a couple of days. When eventually they accepted the flight was over 12 hours delayed they then pivoted to the fact they don't cover flight cancellations due to airline staff rotation issues (i believe the underlying reason the flight was cancelled was the airline couldn't fulfill it staff wise). Although this would seem like exactly the kind of thing you buy insurance for.

Anyone come across this kind of scenario? Thus far the insurer seems to have gone to all lengths to avoid fulfilling the claim. What kind of recourse does she have (as no point calling customer service as they just tell her the wont do anything for her). Or is there no recourse, that her partner got lucky to have them accept his and that she'll have to suck it up?

Eggs For Dinner

If an insurer declines a claim, they have to point to the exact exclusion in the policy, in writing to you. When they do this, and you still dispute their position, you can lodge a formal complaint with the insurer. If this process fails to give you satisfaction, the insurer will "release" the complaint to allow you proceed to the Ombudsman

SilvaMuppet

THanks Eggs. Sounds like something she can run with.

I had asked her if she has tried complaints dept and she hadn't. From what you note above, if there is the potential of an ombudsman lurking behind a complaint at least she can be sure they took it seriously. Regardless of whether it resolves in her favour or not.

Cheers.

Eggs For Dinner

The problem is that the process is quite slow. The complaints department can take many weeks to investigate and deliver their findings. They will almost certainly confirm their original decision. This is down to the fact that the original decision to decline a claim is usually referred to a senior staff member and the complaints officer goes to that same person to discuss their reasoning.

When the complaints department eventually release the claim, you can lodge the matter with the Ombudsman. They are genuinely independent and very knowledgeable regarding policy wordings, cover, exclusions etc. Again, the process is very slow, but you will get a fair investigation

SilvaMuppet

@Eggs For Dinner , thats perfect thanks.

Gives a great insight into the process involved.

It is worth a shot, although from what you say, short of an unlikely mistake on the insurers part most likely they've crossed their t's dotted their i's etc and rejected on a specific item of wording. At least she can be 100% on that when the complaint comes back and then decide if there is any merit in taking it further.

Eggs For Dinner

Policy wording is king. Insurers, however, do make mistakes in their understanding of same. If a wording is vague or can be interpreted in a different way, it has to go against the insurer as they are the ones who drew up the contract. This is rare, as most such instances have bee tested and corrected over the years.

AnRothar

Curious, I was under the impression that all expenses incurred because of the flight delays were the liability of the airline.

What costs did the airline dispute?

SilvaMuppet

@AnRothar , I'm not entirely sure what costs they (airline) disputed TBH. They did however cover the majority of costs (the accommodation , meals and i think the extra taxis to and from airport....possibly also car park in Dublin airport).

Probably it should be her here asking rather than me but she doesn't use boards.

A factor that drives this query is the outcome of the 2 separate claims to the insurer for shortfall between what the airline was prepared to cover and what they actually covered. Both claims were submitted around same time by the same person but seem to have been processed differently. Maybe it boils down to the specifics of what is being claimed for.

One way or another though , i think i have my answer here. (with respect to way a forward along with insight into who should cover what and how there likely is a bit of nuance to what is covered versus what you think is covered.).

Thanks.

SM

melchior1951

Also don't forget to claim EU 261 compensation from the airline. (https://europa.eu/youreurope/citizens/travel/passenger-rights/air/index_en.htm)

AnRothar

https://www.boards.ie/discussion/comment/121602464#Comment_121602464

So if the airline covered their costs why are they then further claiming from their travel insurance?

mondeoman72

I am unsure of what obligation the insurance company has due to the fact it may be the airline that should be stumping up. However, I had a lot of trouble with VHI travel insurance previously. It is not even VHI. It is a crowd called Collinson in Kells.

I had a cancelled holiday due to covid and after discussion, got it pushed it back about 10 days. I claimed the difference. Well they wanted letter of flight cancellation (Ryanair dont do that, flight went, we had covid) they wanted this and that and every time I supplied info, I followed with a phone call to confirm all was in order now. Then after another while , oh no, this is missing, that is missing. A complete pain in the ass. I had extended Covid so my head wasnt clear and it was quite hard to do.

I even told them I was going to come up to their office and not leave until they had reviewed everything and accepted it was right. They didnt want me to.

I eventually lost the rag and notified VHI directly, I declared I was one of 6000 corporate customers in a company, with a substantial portion with VHI, and we had an intranet and noticeboards. I also emailed from my work email address. Strangely enough, Collinsons called me within a couple of days and the money was in my account the following week.

If you have a genuine claim, tell them you are going to go up there and dont be fobbed off.

SilvaMuppet

https://www.boards.ie/discussion/comment/121603274#Comment_121603274

Well like i said, the airline seems to have covered most of the costs but not all. There was a couple of hundred euro in costs of staying over there for the few extra days that the airline didn't cover. I don't know the specifics and this could easily be a lesson in what travel insurance does and doesn't cover.

Said extra costs were paid out without complaint to one party but not the other.

but to be clear they are not looking to double claim or claim anything beyond what it costed them to be in the other country for the 2 extra days. Ideally outside of the loss in income for the 2 and a half days they weren't in work they had the hope (maybe misguided) that between the airline reimbursement and the travel insurance they wouldn't be out of pocket.

Bear in mind the frustration here is the fact that one party had theirs paid and the other didn't. the one that didn't was told one reason initially and when that proved to be incorrect another was provided.