AIG Travel Guard Trip Cancelation

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Jan 14, 2019
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Bought 'insurance' with this company (my 2nd purchase with them and the first time needing to claim). Norwegian airline canceled the route that was due to taken in December 2018, and quickly refunded the fare as there was nothing comparable they could offer. Hotel in Barcelona, bought through Expedia, was not refundable.

This insurance company, after several weeks, refused to reimburse the cost of the hotel - $288.57, based on the fact that there is an exclusion in their trip cancellation policy against 'travel arrangements canceled by an airline, cruise line or tour operator...'
who else is going to cancel a trip? I'd say the trip cancelation insurance this company offers is completely bogus. I would say the consumer is being completely misled...and I would say the insurance does not cover what AIG's advertising suggests it does.

What's your desired resolution? I'd like you to confirm that what I have stated is correct, because I am very surprised that you would have them on your list of 'go to' insurance companies to buy travel insurance from. My experience the moment I had to put a claim in was that the airline is responsible, not them, and that I should go to them. I did. I got the airfare refunded. I would expect that the hotel charge that I could not retrieve be covered and this lot say it isn't. It took them weeks to respond once I put the claim in, to the point that I had to call to investigate, and then they refused, and yet they 'value' me as customer!
The desired resolution would be a refund of $288.57. The other desired resolution would be that Elliott's column educates other unsuspecting consumers of these tactics - and that they come off your list of those you recommend. The alternative resolution, but certainly not the preferred one, considering the insurance bought did not in fact cover trip cancelation is a refund of the cost of the policy.

What's the value of your claim (in US $)? 289

Date of transaction/travel date: 08/20/2018

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jsn55

Verified Member
Dec 26, 2014
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Please make a concise list of the facts in chronological order; leave out all the criticism of the insurance company. I'm sure we can assist you as soon as we know exactly what happened.
 
Mar 14, 2018
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there is an exclusion in their trip cancellation policy against 'travel arrangements canceled by an airline, cruise line or tour operator...'
who else is going to cancel a trip? I'd say the trip cancelation insurance this company offers is completely bogus. I would say the consumer is being completely misled...and I would say the insurance does not cover what AIG's advertising suggests it does.
No insurance policy covers every possible thing that can go wrong--They all specify the list of issues that they cover. AIG's web site says trip cancellation covers losses when "you must cancel or interrupt your trip due to an illness, injury, or death of you, a family member, traveling companion or business partner or other covered reasons."

Why do you feel misled? Do you have copies of AIG advertising that implies it would cover carrier cancellations? If so, you should definitely pursue this with AIG and/or state insurance regulators. If not, you have very little chance of getting compensation from AIG, as insurers almost never pay out for situations that are not covered by their insurance.
 
Sep 19, 2015
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Oh boy, insurance generally covers the traveler getting sick and needing to cancel or the carrier going bankrupt for trip cancellation.

Norwegian, as an airline under financial strain, and with no partners, decided to cancel the route. So they are not bankrupt, which would be covered. Other airlines with partners likely would have put you on another flight, even if it meant 3 connections, but Norwegian says sorry bye.

Insurance is very rules oriented. What does the policy say?
 
Likes: Neil Maley
Sep 20, 2018
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This insurance company, after several weeks, refused to reimburse the cost of the hotel - $288.57, based on the fact that there is an exclusion in their trip cancellation policy against 'travel arrangements canceled by an airline, cruise line or tour operator...'
who else is going to cancel a trip? I'd say the trip cancelation insurance this company offers is completely bogus.
Here's the actual language, which you truncated, from the exclusions list "(a) travel arrangements canceled by an airline, Cruise line or tour operator, except as provided elsewhere in the plan; " The "elsewhere in the plan" is where the insurance's coverage is detailed. Like many forms of insurance (e.g. Home, Auto), Trip Insurance is a "named perils" policy. That means you need to refer to the inclusions for the list of coverages. For instance, if the trip had been canceled due to weather, that's explicitly covered "elsewhere in the plan".

The airline simply not choosing to fly the route any more isn't on that (long) list of inclusions, therefore it's not covered, a point which they emphasize in the exclusions list. I'm not aware of any trip insurance provider that would have covered this outside of a Cancel For Any Reason policy.
 
Jan 14, 2019
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Did you have time to book with another airline? The insurance usually doesn’t begin until the trip commences so if you had the opportunity to book with another carrier, you should have.
Thank you Neil, I was not aware this was an option, nor, when I called AIG to explain what had happened did they suggest it was. They only asked if the airline had provided other options....but they could only offer different dates which did not work for us.
 
Jan 14, 2019
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Thank you SirWired for the education, I nor others I have talked about this have ever heard of such exclusions before.
I'm not sure why the customer has to incur the financial burden in such cases when this was not their doing, in any shape or form. A policy has been bought in good faith to guard against trip issues, and yet I am out of pocket by both the cost of insurance (which proved useless to me) and the hotel room expense, which was non refundable. I'm curious who should be responsible in this case? The airline also claim no responsibility....
 
Sep 19, 2015
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Thank you SirWired for the education, I nor others I have talked about this have ever heard of such exclusions before.
I'm not sure why the customer has to incur the financial burden in such cases when this was not their doing, in any shape or form. A policy has been bought in good faith to guard against trip issues, and yet I am out of pocket by both the cost of insurance (which proved useless to me) and the hotel room expense, which was non refundable. I'm curious who should be responsible in this case? The airline also claim no responsibility....
When did Norwegian notify you of the cancellation?

Travel Insurance is more geared to the big airlines with their partners and less to these low cost airlines. For cancellation it is more geared to covering the traveler and not the cancelling of routes.

I no longer book non refundable hotels after not making a trip and it was for work reasons— I would rather pay a little more and have some flexibility.