-
Got to claim for a cancelled RFS return flight to Uk from Amex Plat insurers. Anyone claimed for Avios cash value like this? How much do they asses them as being worth?
Did a RTFF but could find an answer . Apologies if Ive missed a big topic somewhere !
The cost of buying the same number of avios seems to be the usual rule of thumb in cases like this.
I thought that but we get them cheap at rates from 0.83 upwards. Maybe the number BA sell them for on their site should be the benchmark?
I thought that but we get them cheap at rates from 0.83 upwards. Maybe the number BA sell them for on their site should be the benchmark?
You need to produce a value that is objectively justifiable for the insurable loss incurred. The cost of buying Avios at full price might give a result that is too high vs the cash cost of the ticket. You need to do the sums – there are plenty of reference point for the cost/value of Avios and the cost of a replacement ticket.
I’ve not read the Plat policy for a while but will it even cover them?
Staysure explicitly say they don’t cover any type of miles or points.
Surely the loss is the X amout of avios spent on the ticket and not the cash cost of buying the same ticket?
This does not appear to be a case of flight got cancelled and I needed to spend £500 on a new one please pay me that back.
And surely the cost of buying those X avios direct from BA is valid for the claim?
Sure there are offers and plans where the cost could be less than that but those aren’t applicable to everyone.
I queried this with the FCA and got a “boilerplate response”. The gist being that you have to have an actual “complaint” before they will investigate. Am following up, since the complaint is about the contract wording.
I would argue that you need to be made “whole” by your insurance, which could be new flights, replacement of Avios or cash equivalent (at current rates). I don’t subscribe to the notion that your level of travel cover relates to how you paid for it, and I think it’s more “wiggle room” for insurers to refrain from having to replace your “Avios Club flights” with cash equivalent ones.
Just out of interest, who cancelled the flights and when? With avios bookings the ability to cancel up to 24 hours before departure usually means that travel can be cancelled without having to involve insurers.
FYI – my follow-up to the FCA. (Ref: PNX-5046138-V9W2)
If you swap your Avios for Nectar… If you then buy a TV from Argos with Nectar…. What value does it have??
The FCA need to get their head around this one, because “points” can’t both have value and no value until you open the box….
———-
I’d like to complain about Nationwide FlexCover travel insurance and Barclays Travel Pack travel insurance specifically (and generally most others). Both of these have “exclusions” for travel where points/air miles are used – suggesting they are either not covered or have restrictions.
In such cases, the level of insurance is based on the “payment method” used for the travel. Whilst such “points” may have been apparently gifted, many such loyalty schemes come with expensive annual fees. Other points/air miles might have been purchased directly from airlines/card providers.
The contracts/T&Cs in these products is very ambiguous and misleading. It is unclear whether the terms relate to cancellations, to onward travel and holiday duration or repatriation. This is clearly in violation of your own code (COBS). To support this assertion, there are many conversations in airline/air miles/points fora where there is a lot of discussion and little clarity. It is clear the market (i.e. customers) have no idea what these insurance product cover.
Perhaps rather than adjudicating on thousands of claims/complaints the FCA could provide clarity for all parties involved.
Many thanks, Ian
Just out of interest, who cancelled the flights and when? With avios bookings the ability to cancel up to 24 hours before departure usually means that travel can be cancelled without having to involve insurers.
You are assuming everyone redeems avios. What if someone uses Etihad guest miles that has significant cancellation fees?
No, I’m not. It was a question to the OP who stated it was a RFS booking with avios!
I’m not sure why it is suggested there is any lack of clarity in the wording of these policies or why it’s difficult to provide the insurer with an objectively justified money sum to claim for any Avios lost. It’s something people do quite regularly without issue.
Its the OP here. I am making a claim after the first leg had been flown one an RFS flight. Skiing injury necessitated the early return from GVA and so had to bin leg 2 and buy an earlier return.I know that I was invalidated from getting Avios back from BA, I did read the T&Cs. I think that I will claim 1.6p per mile rom Amex/Aviva which is about the cost of the cash ticket. I used Avios again for the new flight back.
Did you contact your insurer before paying for the new flight? Normally with a medical issue while travelling you’re expected to make contact with the insurer to get authorisation for any expenditure outside of emergency treatment.
Its the OP here… I used Avios again for the new flight back.
Why? Why not pay cash? If the insurer agrees to a medical repatriation then I can’t see a reason not to buy a regular ticket. Also I can’t see “about the cost of a cash ticket” being a valid claim amount unless you actually buy the Avios at that price and can produce a receipt?
Its the OP here. I am making a claim after the first leg had been flown one an RFS flight. Skiing injury necessitated the early return from GVA and so had to bin leg 2 and buy an earlier return.I know that I was invalidated from getting Avios back from BA, I did read the T&Cs. I think that I will claim 1.6p per mile rom Amex/Aviva which is about the cost of the cash ticket. I used Avios again for the new flight back.
Sounds reasonable. Cost to replace avios used for the replacement flight. I’m assuming you do actually purchase that number of avios which does show there was an actual cost paid ideally – you could chance it without but it’s stronger if you do.
Provided, ideally, buying the flight for cash would have cost more.
The whole point of insurance is “making you whole” – it shouldn’t matter how you acquired the product/service. The issue is that insurers are putting in terms where insurance is predicated on how you paid for the product/service. This is clearly wrong.
No-one gets Avios for “free”. What if you got 1% cashback on a CC and paid for your flight with that?? Are you covered then?
It’s important when (e.g.) Nationwide (and others) change their terms and have a general exclusion clause that stuff bought on points aren’t included. Clearly nonsense, and they know it.
But you said have to abide by the insurer’s Ts and Cs – most customers would be expected to obtain authorisation for booking replacement flights. If you could claim this back, why go to the trouble of booking reward flights?
The whole point of insurance is “making you whole” –
They can’t make you whole unless you buy the Avios. If you don’t IMHO you have nothing to claim.
Otherwise an insurance claim with an award flight for repatriation is a convenient way to sell surplus Avios for 1.6p.
Two questions for the OP
Did you get permission to return early? Typically this is only done if you need treatment at home (ie not just because you are disinclined to continue the trip due to accident/illness).
Why did you complicate things and not just buy a cash ticket?
Well sorry, but that’s complete nonsense. My Dad kindly gifted me a very nice watch for my birthday. It cost me £0, The cost or value isn’t important – the insurance company agrees to replace it if stolen. Not the price I paid, nor my Dad paid. Replace it.
Should the insurance company pay nothing because it cost me nothing?? Complete nonsense. If Avios had no value, why would BA let you exchange them for a flight????
Well sorry, but that’s complete nonsense. My Dad kindly gifted me a very nice watch for my birthday. It cost me £0, The cost or value isn’t important – the insurance company agrees to replace it if stolen. Not the price I paid, nor my Dad paid. Replace it.
Should the insurance company pay nothing because it cost me nothing?? Complete nonsense. If Avios had no value, why would BA let you exchange them for a flight????
Travel insurance of this kind – medical cover including emergency repatriation – is completely different from insuring an item against loss or damage. If you want to claim the flights back cost £ X you need to spend £ X on them; either real money or buying the points. Just my opinion, I’m not a lawyer or a loss adjuster, but I can’t imagine they will pay up otherwise.
I picked up a minor injury skiing this year. I called Amex before seeing a doctor. I certainly wouldn’t have flown home early without a documented reason from a local doctor *and* Amex’s prior approval.
- You must be logged in to reply to this topic.
Popular articles this week:
