There was some discussion in our comments yesterday about insurance coverage for the coronavirus outbreak.
A reader had contacted American Express Platinum and been told that, basically, he was stuffed. Amex said that they would refuse to pay out if he travelled and fell ill but would also refuse to pay out if he cancelled.
I took a look at a different insurance policy I hold. It includes this line, which I thought was standard across all travel insurance policies:
Cancellation and curtailment/loss of holiday
If beneficiaries are forced to:
a) cancel their trip as a direct and necessary result of any cause listed below: [snip]
(vi) The UK Foreign and Commonwealth Office or the equivalent government authority in the beneficiary’s country of residence advising against ‘all travel’ or ‘all but essential travel’ to the beneficiary’s intended destination.
(vi) is, of course, where we are now with coronavirus, with the Foreign Office advising against all but essential travel.
I had a look at the Amex Platinum insurance document (download it here) and in theory it backs up what the reader was told by the call centre. I also asked a barrister friend to take a look and he confirmed my interpretation. With Amex Platinum insurance there appears to be no option which allows you to cancel if the Foreign Office says you should not go. You need to look at Section 1.2.
The clause below, from Section 1.9, is from the list of reasons why American Express Platinum will not pay out:
14) Trips in, or booked to, countries where a government agency has advised against travelling or which are officially under embargo by the United Nations.
You can see why the call centre told our reader that he was not covered. On a strict reading of the document, my interpretation is the same – Amex won’t pay up if you don’t go (see Section 1.2) and they won’t pay up if you do go and fall ill (see Section 1.9).
However, I spoke to Amex yesterday about this case. It told me, in writing, that they would settle claims for anyone who has to cancel a trip to China due to coronavirus. Confusingly it pointed to Section 1.2 as proof, but under Section 1.2 the ONLY acceptable reasons for cancellation are:
a) You, or a person travelling with You, or a person You are visiting for the main purpose of Your Trip, having an accident, suffering an unforeseen illness or dying before or during Your Trip;
b) Your Close Relative, or a Close Relative of a person travelling with You, or a Close Relative of a person You are visiting for the main purpose of Your Trip, having an accident, suffering an unforeseen illness or dying before or during Your Trip;
c) Your redundancy which qualifies for redundancy payments under current legislation;
d) You being called for jury service or being subpoenaed as a witness other than in a professional or advisory capacity;
e) Unforeseen severe damage to Your home or Your business premises if the damage caused is likely to be more than £25,000;
f) Theft at Your home or Your business premises that requires Your presence by the police;
g) A delay of more than 12 hours on the outward leg of Your Trip as a result of industrial action, adverse weather, mechanical breakdown of public transport, or a transportation accident which means You no longer want to go on Your Trip
….. which makes no sense as Section 1.2 clearly does not list ‘Foreign Office guidance’ as an acceptable reason to cancel – but I will take their word for it. Any other readers who are being fobbed off by the call centre may want to call back.
This is not the first time that we have had issues with Amex and the wording of its insurance documents. Anyone with raised cholesterol, for example, is not covered for any medical conditions which can be linked to it.
That said, I can honestly say that – in numerous claims I have made over the years – it has paid out even when I had not acted strictly in accordance with the rules.
PS. If you missed it, take a look at our recent article on 10 reasons why you should get the American Express Platinum card.
Want to earn more points from credit cards? – January 2022 update
If you are looking to apply for a new credit or charge card, here are our January 2022 recommendations based on the current sign-up bonus.
You can see our full directory of all UK cards which earn airline or hotel points here. Here are the top current deals.
There are special sign-up bonuses on both of the BA American Express cards until 28th February 2022. The bonus on the free card is doubled to 10,000 Avios and the bonus on the Premium Plus card is increased from 25,000 Avios to a huge 40,000 Avios.
British Airways American Express
10,000 Avios for signing up (SPECIAL OFFER) and an Economy 2-4-1 voucher for spending ….. Read our full review
British Airways American Express Premium Plus
40,000 Avios (SPECIAL OFFER) and the UK’s most valuable card perk – the 2-4-1 voucher Read our full review
American Express Preferred Rewards Gold
Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review
The Platinum Card from American Express
30,000 points and an unbeatable set of travel benefits – for a fee Read our full review
Earning miles and points from small business cards
If you are a sole trader or run a small company, you may also want to check out these offers.
The bonus on the Capital On Tap card is increased from points worth 10,000 Avios to 30,000 Avios until 4th February 2022.
The bonus on the British Airways Accelerating Business card is increased from 30,000 Avios to 45,000 Avios until 28th February 2022.
American Express Business Gold
20,000 points sign-up bonus and free for a year Read our full review
American Express Business Platinum
40,000 points sign-up bonus and a long list of travel benefits Read our full review
British Airways Accelerating Business American Express
45,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review
Capital On Tap Business Rewards Visa
30,000 points bonus – the most generous Avios Visa for a limited company Read our full review
For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.
Apply 31st March 2022 and your cashback will be increased to 2% for the first three months.