If my travel insurance refuses my cancellation claim, what do I do?

Question

José Manuel Alburquerque · Accepted Answer

Ask for the reason in writing and compare it with the list of reasons for cancellation covered by your policy, which is usually exhaustive. The most common grounds for refusal are that the reason is not on that list, that it is an illness you already had when you took out the insurance or that the insurance was taken out longer after the booking than the policy allows. If the reason does not stand up, make a complaint. And if it is the airline or the organiser of the trip that cancels, you have rights that do not depend on the insurance. The usual grounds for refusal The reason is not among those covered, such as cancelling out of fear or because of a change of plan. An illness that already existed when the insurance was taken out, unless it unexpectedly got worse afterwards. The insurance was taken out later than the policy requires, as policies often ask for it to be taken out at the time of booking or a few days afterwards. The trip was cancelled late. You must cancel as soon as the reason arises, because costs go up as the date approaches and the policy may only pay those applicable at that point. What to do Ask for the refusal in writing and read the clause being applied to you. If it restricts what you could expect and is not highlighted and signed separately, it cannot be applied to you. Provide a medical report stating when the illness began and why you could not travel, preferably one dated before you cancelled. Add the invoices for the cancellation costs. Complain to the insurer's customer service department, which has one month to reply. If it does not reply or rejects the complaint, complain to the “Dirección General de Seguros y Fondos de Pensiones”, Spain's insurance regulator. For claims of up to 2.000 euros you can sue without a lawyer. To sue, you have two years from when you had to cancel the trip. A written complaint to the insurer or to the regulator interrupts that time limit. Rights that do not depend on the insurance If the airline cancels the flight, it must refund your ticket or re-route you. In addition, unless it told you two weeks in advance, or less if it offered you another flight at a similar time, or there were extraordinary circumstances, it must pay you compensation of 250, 400 or 600 euros depending on the distance. If you booked a package holiday and there are unavoidable and extraordinary circumstances at the destination, such as a disaster, you can cancel without a penalty. If it is the organiser who cancels the package holiday, it must refund everything you have paid and, unless the minimum number of travellers was not reached or there were unavoidable and extraordinary circumstances, also compensate you. Outside those cases, you can cancel a package holiday whenever you wish by paying a reasonable penalty, which is what the insurance usually covers. You can also transfer the trip to someone else by giving written notice at least seven days before departure. In that case, you and the person who takes your place are liable for any amount still to be paid and for the reasonable costs of the transfer.