CK: Death Of A Traveling Companion

We've done a number of stories on trip insurance companies. People think it'll cover just about everything but then their claims are denied.

In this case, Betty Clark says the death of her friend should've been covered. So why couldn't she get her money back?

"I felt like we were misled... that we were led to believe that we would get our money back," says Betty Clark, Sacramento resident.

Betty now thinks her travel agent, Grand Circle Travel, wasn't straight forward about the trip insurance she and her friend bought for their vacation to Europe.

"You can cancel your trip up to any time up until the day of departure for any reason," says Betty.

They needed that protection because Betty's friend recently had leg surgery and required an aisle seat on the plane. When one wasn't available, they were forced to cancel and file a claim with the trip insurance company, Trip Mate, which issued them vouchers.

"There was absolutely no mention of a voucher in this or through the agent," says Betty.

Using the vouchers, Betty rescheduled their European vacation. But tragically, her friend died of a stroke before they could take the trip.

"I do miss her. She was a very dear friend of mine," says Betty.

The travel agent, Grand Circle, refunded the value of her friend's ticket but they would only give Betty another voucher.   She says she won't take the trip without her friend.

"I feel like I am entitled to get a cash refund," says Betty.

We first contacted Trip Mate. They said because Betty's second trip was booked with a voucher, "it is not possible to convert a travel voucher.... to cash."
-- Linda Finkle, Executive Vice President.

We then reached out to Grand Circle Travel, which sold her the trip and the policy. After five calls, they wouldn't comment on how Betty felt she was misled.

But they say they made an exception to their policies with a refund after Betty's friend passed away and after our call, agreed to refund Betty too.

Betty's learned her lesson about trip insurance.

"If it sounds too good to be true, like this, if you cancel at any time for any reason... beware," says Betty.

Grand Circle Travel says customers have 14 days to cancel their trips without penalty if they aren't happy with the terms and conditions. As we've told you before, often these insurance policies are pages long with lots of legal speak.

A good travel agent will explain the policy thoroughly before selling it to you.

Ask to get a copy of the policy before you buy.

Trip Mate Statement:

According to Grand Circle Travel's records, when Ms. Clark and her traveling companion booked their 6/10 trip and requested aisle seats on the plane, the tour operator's staff clearly advised them that aisle seats would be requested but could not be guaranteed.  When Ms. Clark and her traveling companion learned that only one aisle seat was obtained, they canceled the trip.

The travel protection plan lists the reasons covered for trip cancellation.  Because trip cancellation due to airplane seating is not a covered peril, our office – the claims administrator for the travel protection plan – determined that the trip cancellation was not covered by the plan.  Under Grand Circle Travel's cancellation waiver – a separate and additional benefit provided by the tour operator to provide a certificate good towards future travel if a trip is canceled for a reason not covered by the plan – Ms. Clark and her traveling companion each received a travel voucher from Grand Circle Travel.  Grand Circle Travel issued the travel certificate on 7/30/10.

Using the travel certificates, in 9/10 Ms. Clark and her traveling companion booked a 5/11 Grand Circle Travel trip, and given the unusual circumstances, the tour operator provided the travel protection.  When notified of the traveling companion's subsequent death, Grand Circle Travel made a goodwill exception and refunded monies for the traveling companion.  This week we received a claim form from Ms. Clark, who advises that she canceled her trip due to her traveling companion's death.  Ms. Clark is correct that this is a covered reason for trip cancellation.  Because her 5/11 trip was purchased with a travel voucher, Grand Circle Travel's advice that she will receive a new travel voucher is correct.  It is not possible to convert a travel voucher issued under the tour operator's cancellation waiver to cash; however, Grand Circle Travel will allow Ms. Clark to transfer her voucher to another individual if she prefers.

Again, thank you for the opportunity to respond to Ms. Clark's query.

Sincerely,

Linda M. Finkle
Executive Vice President
Trip Mate, Inc.

--------------------------------------

Grand Circle Travel Statement

http://www.gct.com/General/Terms-And-Conditions.aspx#TravelerProtection

Our Terms and Conditions are attached above--the optional Travel Protection Plan that we offer through Trip Mate is attached. I'll get back to you as to the exact amount of reimbursement today. When we reviewed Mrs. Clark's case, we recognized that we had made an exception to her friend with a cash reimbursement and decided that, in all fairness, we should have offered the same to Mrs. Clark.

Response To Amount Of Refund and Why Betty Was Initially Offered A Voucher Instead:

Mrs. Clark will get back $3,077.31.

If a traveler cancels before departure for a covered reason, they would receive cash, but if they canceled for an uncovered reason, they'd receive a voucher (and that's where the travel protection program kicks in).  In Mrs. Clark's case, cancelling due to an airplane seat assignment is considered an uncovered reason.

Also, our Terms & Conditions are on our web site, and we mail them, as part of an information package, someone books her trip. A traveler does have a free look period .  After she cancels her trip within 14 days of booking it, she'd incur a $300 cancellation fee.  However, if she cancels the trip within 14 days because she doesn't accept the terms & agreement, the $300 cancellation fee is waived.

Response To How Betty Felt She Was Misled By Grand Circle Travel:

I can't comment on this; I wasn't privy to the call.

Kind regards,

Priscilla O'Reilly
Director, Public Relations