NCL cruise canceled - not refunding travel insurance

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Mar 22, 2020
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I was booked on a NCL cruise for March 18. NCL canceled the cruise and offered a refund for the cruise. They are not refunding the cruise insurance which was booked with the cruise. I called NCL's 800 number and spoke to a representative. The representative did not provide any additional information, just saying that the travel insurance wasn't refundable.

Since NCL canceled the cruise I was expecting the cruise insurance to be refunded. I wanted to see if you think the insurance should have been refunded and what steps I would take to pursue this further.
 
Feb 21, 2018
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Consider that you pay for auto insurance, and if you never use it, you don't get a refund, right? Same with travel insurance. Generally you get a short 'free look' period with some policies where you can cancel and get a refund (not all are like this) but normally once you pay for it, it is no longer refundable. Sometimes transferable to a new trip that you book right away, but almost never refundable.
 

justlisa

Feb 12, 2019
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NCL is not a travel insurer. They take the money you gave them and give it to a travel insurance company (I think it's Allianz but not certain). They no longer have that money and they aren't in control of it so cannot refund you.

Also - your insurance was active since you purchased it so you did in fact "use" it you just didn't need to put in a claim.
 
Jun 24, 2019
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When our November cruise was cancelled as the ship ran aground everything we paid was refunded, to the penny.

Once the cruise line cancels the cruise, there is an argument that the OP no longer has an insurable interest. The carrier may argue that the carrier was prepared to respond if the OP cancelled before the cruise line did for a covered reason. Our OP should pursue this and hope, at least, for a credit for a future insurance purpose, although it is possible that the applicable insurance law would require a refund.
 
Jun 24, 2019
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Consider that you pay for auto insurance, and if you never use it, you don't get a refund, right? Same with travel insurance. Generally you get a short 'free look' period with some policies where you can cancel and get a refund (not all are like this) but normally once you pay for it, it is no longer refundable. Sometimes transferable to a new trip that you book right away, but almost never refundable.
I posted about this the other day. If you buy auto insurance (say, collision coverage) and then never take title to the car, you have no insurable interest and are generally entitled to a refund. Travel insurance may raise other legal issues, but if the carrier's position is that you are only covered for "occurences" between specific dates, and the cruise line cancels, I think under most state insurance laws you are entitled to a refund. That's not a consumer prtection law; that was designed long ago to prevent people from insuring against a loss when they had no economic stake at risk.
 
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Neil Maley

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My wife just told me she was on a conference call with an NCL rep. and she confirmed that they weren’t refunding insurance. The reasoning is as msmayor posted.

This is why third party insurance is often better then using a suppliers insurance unless you are over the age of 70. Most travel insurers are allowing consumers to move their policy to another trip if their trip was canceled and there is no claim.
 
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Apr 8, 2019
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jsn55

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Dec 26, 2014
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Theoretically, insurance is not refundable. And if you're taking a full cash refund (I didn't even know you could do that) instead of a credit toward a future cruise, NCL is technically within their rights to not refund the insurance. We have seen some success during this awful time when the insurance has moved over with the rebooked trip.

People use the term "refund" quite casually, but in this instance it's important to know if you're getting your money back or a NCL voucher toward a future cruise.
 
Feb 21, 2018
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I posted about this the other day. If you buy auto insurance (say, collision coverage) and then never take title to the car, you have no insurable interest and are generally entitled to a refund. Travel insurance may raise other legal issues, but if the carrier's position is that you are only covered for "occurences" between specific dates, and the cruise line cancels, I think under most state insurance laws you are entitled to a refund. That's not a consumer prtection law; that was designed long ago to prevent people from insuring against a loss when they had no economic stake at risk.
This may be the case if there is no coverage for pre-existing conditions, or no 'cancel for any reason' coverage. Those two features usually require purchase up front, within two weeks of first deposit, so that you are 'covered' for the things that might come up between the time you put a trip on deposit and the time you are scheduled to leave.

For my family, I prefer to make certain I am covered for pre-existing conditions. If you are perfectly healthy 18 months before the trip and commit, then have some health issue crop up you may find yourself with what could now be defined as a pre-existing condition. Buying your policy ahead of time takes away that risk - so the purchaser now benefits from the policy provisions before setting foot on vacation.
 
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Mar 22, 2020
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I just received an email from NCL that based on feedback received they are giving a credit for the cost of the standard or platinum travel protection for
sailings from March 13, 2020 through April 11, 2020.
I am a frequent NCL cruiser and I have to give NCL credit; they come through and do the right thing when they need to.
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
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www.promalvacations.com
I just received an email from NCL that based on feedback received they are giving a credit for the cost of the standard or platinum travel protection for
sailings from March 13, 2020 through April 11, 2020.
I am a frequent NCL cruiser and I have to give NCL credit; they come through and do the right thing when they need to.
When people complain enough, many companies will change their policy. Frankly- they should have credited the insurance right away.
 
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