Hundreds of travellers were stranded worldwide last week as travel to the US northeast coast ground to a halt in the face of Hurricane Sandy. Dorine Reinstein investigates what coverage clients are entitled to in the event of natural disasters.
In the wake of Hurricane Sandy, travel agents and their clients have found insurance cover cannot protect them against all costs associated with natural disasters.
Even with travel insurance in place, clients could still be faced with additional costs warns William Fourie, gm of Travel.co.za, as insurance often doesn’t cover natural disasters. He says, depending on how long in advance they cancel, clients can still try to obtain a refund. “But if they just want to cancel to avoid the hurricane they will not always be reimbursed. Sometimes clients would rather postpone the trip instead of lose their money. Change fees will still be liable unless the airlines advise of free changes or refunds without penalties. So much of this depends on how the suppliers react in situations such as these.”
John Ridler, media and PR manager Cullinan Outbound Tourism, agrees: “Passengers who wish to cancel their flights simply to avoid bad weather will find themselves penalised if the airline continues to operate. The same could apply to pre-paid accommodation.
The key is to carefully read the small print of the insurance policy to make sure you understand the terms and conditions, says Uriah Jansen, md of Oojah Travel. She says not all policies will include hurricanes but with Oojah’s “Cancel for Any Reason” cover, clients will be insured in the event of adverse weather. She says Oojah will reimburse 50% of the published penalties and non-refundable prepaid expenses for travel and accommodation not used if the client wishes to cancel his or her trip more than 48 hours prior to his time of departure.
If travel is delayed more than six hours due to adverse weather conditions, Oojah will pay up to R3 500 for expenses incurred as a result of delays. She warns, however, that clients must provide proof of the expenses incurred, including copies of receipts for meals purchased, accommodation etc. Uriah urges travel agents to advise clients to contact the insurer immediately when they become aware of a possible claim or need to cancel. “This will ensure that the client receives the correct advice from the insurer and that there are no problems when the claim needs to be paid,” she says.
Jason Veitch, md of TIC, notes that many people choose not to cancel their travel plans because of their commitments abroad and because they would rather be delayed and then travel a day or two later. He says many airlines have compensation programmes whereby alternate flights are arranged, an option that is often more appealing to travellers.
Although TIC’s policy carries an exclusion related to weather events in terms of both journey cancellation and curtailment, the company will extend the policyholder cover to the period when they choose to travel. Therefore, travellers don’t lose the benefit of the policy they have purchased.
For more details refer to TNW November 7, 2012.
In the wake of Hurricane Sandy, travel agents and their clients have found insurance cover cannot protect them against all costs associated with natural disasters.
Even with travel insurance in place, clients could still be faced with additional costs warns William Fourie, gm of Travel.co.za, as insurance often doesn’t cover natural disasters. He says, depending on how long in advance they cancel, clients can still try to obtain a refund. “But if they just want to cancel to avoid the hurricane they will not always be reimbursed. Sometimes clients would rather postpone the trip instead of lose their money. Change fees will still be liable unless the airlines advise of free changes or refunds without penalties. So much of this depends on how the suppliers react in situations such as these.”
John Ridler, media and PR manager Cullinan Outbound Tourism, agrees: “Passengers who wish to cancel their flights simply to avoid bad weather will find themselves penalised if the airline continues to operate. The same could apply to pre-paid accommodation.
The key is to carefully read the small print of the insurance policy to make sure you understand the terms and conditions, says Uriah Jansen, md of Oojah Travel. She says not all policies will include hurricanes but with Oojah’s “Cancel for Any Reason” cover, clients will be insured in the event of adverse weather. She says Oojah will reimburse 50% of the published penalties and non-refundable prepaid expenses for travel and accommodation not used if the client wishes to cancel his or her trip more than 48 hours prior to his time of departure.
If travel is delayed more than six hours due to adverse weather conditions, Oojah will pay up to R3 500 for expenses incurred as a result of delays. She warns, however, that clients must provide proof of the expenses incurred, including copies of receipts for meals purchased, accommodation etc. Uriah urges travel agents to advise clients to contact the insurer immediately when they become aware of a possible claim or need to cancel. “This will ensure that the client receives the correct advice from the insurer and that there are no problems when the claim needs to be paid,” she says.
Jason Veitch, md of TIC, notes that many people choose not to cancel their travel plans because of their commitments abroad and because they would rather be delayed and then travel a day or two later. He says many airlines have compensation programmes whereby alternate flights are arranged, an option that is often more appealing to travellers.
Although TIC’s policy carries an exclusion related to weather events in terms of both journey cancellation and curtailment, the company will extend the policyholder cover to the period when they choose to travel. Therefore, travellers don’t lose the benefit of the policy they have purchased.
For more details refer to TNW November 7, 2012.
