While GoReady is sticking to the advice not to file a report, it has now offered you the choice between a $220 partial refund or a credit for the full value of your insurance policy ($559).
Mr. Schreier notes that it is not in his company’s best interest for claims to be rejected. GoReady, like many of its competitors, primarily sells the plans and provides customer service, while third parties assess claims and insurers – think Nationwide or Assurant – cover the payouts. “We are motivated to get our customers’ claims paid,” said Mr. Schreier, “because we know that’s the most likely factor influencing repeat business.”
Still, your case is frustrating. We all understand why policies could exclude injuries sustained during mountaineering, for example. But it’s irritating that just because a situation isn’t explicitly described, it’s excluded. That’s one of the reasons some people buy more expensive Cancel for Any Reason or CFAR plans, but even then read the fine print.
CFAR, for example, only takes effect before your holiday starts. It wouldn’t have helped Mark from Los Angeles, who insured his Sierra Club Antarctic cruise through a company called World Nomads. About halfway through the 18-day journey — and before reaching Antarctica — a fellow passenger fell and died. According to protocol, the ship turned around and sailed to the Falkland Islands and finally to Ushuaia, Argentina, for the group’s return flight.
In a letter intended for insurance companies, the Sierra Club estimated the lost value due to the trip disruption at $7,308 per person. But TripMate, which manages claims for World Nomads, rejected Mark’s claim and that of his travel companion.
The problem: Their trip wasn’t technically “interrupted,” as they spent all 18 nights on board. Several times in my conversations with insurance executives, I heard the phrase “You are not covered for loss of enjoyment,” but I imagined it applied to a week of rain at a Caribbean resort, not an Antarctic cruise that never reaches Antarctica .
I also heard from a reader named Alan, from Vaughan, Ontario, about a nightmarish return from Vancouver to Toronto during the storms of last Christmas season. After three WestJet flights were canceled and another delayed, all due to weather, the next flight they were booked on was canceled due to crew shortages, and he and his wife were trapped overnight in Calgary. Alan had paid for his trip with an HSBC credit card which offers travel insurance through Assurant.
