Insolvency Travel insurance – What if your airline or travel agent goes Bang and you’re stranded?

Until recently, insolvency travel insurance cover has been rare. Hence, many travelers have had no protection from the insolvency of a travel provider such as an airline or hotel group. For example, we have seen the difficulties of 1time, Velvet Sky and other airlines that barely got off the ground yet took a lot of money off many understandably angry people. You need to ask the question:

Does your policy have insolvency travel insurance cover if the airline or travel agent goes bust?

What is Insolvency Travel Insurance Cover?

In the difficult times that we are in the demand for such a product has naturally increased and we are happy to say that Travelinsure is now able to provide insolvency travel insurance to protect you in case your travel supplier unexpectedly liquidates. Travel suppliers are defined as the scheduled airline, cruise line, railway line, coach transportation, car hire, or hotel accommodation. Note that a travel agent is not a travel supplier.

Cancellation due to insolvency before you depart.

In the event that your journey, or a portion of your journey, is cancelled before your departure due to the financial insolvency or liquidation of the travel supplier with which you booked and purchased your travel arrangements, and you have insolvency travel insurance benefit in your policy we will reimburse you for any irrecoverable expenses paid in advance.

What you can Claim

We will pay a benefit, up to the amount shown on the Schedule of Benefits, for the Prebooked travel arrangement that You have paid or contracted to pay, which you cannot get back and suffer a financial loss for the following:

• Visa costs not exceeding R2000 (two thousand rand).
• Unused, non-refundable Prebooked travel arrangements less any refunds you may obtain.
• Your unused, non-refundable Prebooked conference or sporting event.
  We will provide cover if the insured Journey is Cancelled in Your Country of Residence before the scheduled date of departure due to any other reason not specified under Cancellation Section 3.2 (Named reason), provided the following conditions are met:
• You purchased Your travel insurance within 48 (forty-eight) hours of making part or full payment of Your travel arrangements.
• You cancel Your insured Journey within 48 (forty-eight) hours or more before the scheduled departure date from Your Country of Residence.

What you cannot Claim

1. The excess shown on the Schedule of Benefits, except where You have paid the excess waiver cover option.
2. Any Expenses if Your travel insurance was purchased after 48 (forty-eight) hours of Your part or full payment of Your travel arrangements.
3. Any Expenses if You cancel Your Journey less than 48 (forty-eight) hours before Your scheduled Journey departure.
4. Any claim where You used vouchers, credit, or coupons as the payment method for the part or full payment.

What Policies have Insolvency Travel insurance cover Before you depart?

You will only find this cover in our Luxury, Economy and Business cover.

Cancellation due to insolvency after you depart.

In the event of financial insolvency or default of the travel supplier after your departure and if you are unable to return to your Country of Residence on the scheduled flight, we will pay the cost of an economy class airline ticket for you to return to your country of residence.

With our insolvency travel insurance benefit, we will pay a benefit, up to the amount shown on the Schedule of Benefits, for the travel arrangement that You have paid or contracted to pay, which You cannot get back and suffer a financial loss for:

• Your unused, non-refundable Prebooked travel arrangements less any refunds you may obtain.
• You incur reasonable additional travel costs to cut short Your Journey and return to your Country of Residence if necessary and unavoidable (three-star accommodation room only or economy fare travel).
• We will provide cover if the cutting short of Your Journey is necessary and unavoidable to return directly from overseas to Your Country of Residence for any other reason not specified under Curtailment section 3.4 (Named Reason), provided the following conditions are met:
• You purchased Your travel insurance within 48 (forty-eight) hours of making part or full payment of your travel arrangements.
  PLEASE NOTE:
  You can only claim from one of these Sections below after You have travelled:
  1) Section 3.4 – Curtailment for Named Reason
  2) Section 3.6 – Curtailment for Any Reason

What Policies have Insolvency Travel insurance cover After you depart?

You will only find insolvency travel insurance cover in our Luxury travel and Business cover.