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Travel Insurance declined due to a strange reason.

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01 Jul, 2021 by  Sachin Syam

I had booked a ticket through goibibo for an international flight inbound to India from goibibo. They offered me travel insurance for me which covered my losses due to cancellation or missing of flight.

The flight later got canceled due to COVID-19 restrictions and the flights in that route were closed for close to a year. During this time, I canceled the ticket and got a refund after deductibles. I noticed that the insurance amount was never refunded. This obviously meant the insurance was never canceled. Therefore, I made a claim request against my losses due to not being able to travel.

Strangely, it got denied and the reason for the denial was what shocked me!

As per the repudiation letter, 

We would like to inform you that policy taken by you there is Geographical coverage only for India.
We regret to inform you that the claim stands repudiated as it does not fall under the policy
coverage with respect to Trip cancellation and Interruption.
Please find below policy wording for your ready reference:
II. Definitions:
“Territory”: This Policy applies to incidents anywhere in India while travelling.
Trip” means a journey out of usual place of residence in India and back, the details of which
are specified in the Policy Schedule.


This did not make any sense. I was issued this policy for an international flight which was inbound to India, that too a one way flight. Any events which can occur during the travel for which the insurance can be claimed can only happen outside India. A policy which is geographically limited to India is not of any use in this case. An insurance can only be issued for an event which can happen!

I felt like a fool after reading this! They made me pay for the policy claiming that the policy will cover my losses due to cancellation of flight and then they denied it saying that it was not applicable outside India.

Imagine, how many people are being fooled by these people. Isn't this a scam?

I took this up with the insurance company and they said it was the mistake of the agent who issued me this policy but the agent keeps asking to contact the insurance company.

I have decided not to let this pass. I am planning to file a complaint against this in Consumer Court. Is there any other bodies where I can specefilaclly file complaints against Insurnace companies?

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01 Jul, 2021
Sachin Syam

I found out that there is an Insurance Regulatory and Development Authority of India.

Does anyone have experience filing a complaint with them?


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02 Jul, 2021

Hey Sachin,


There clearly is some confusion.


1) International Travel Insurance issued by Indian Insurers is only meant for travel ex-India. The coverage starts when you leave the Indian shores and ends when you hit Indian shores back. Who was the Insurer of your policy & what was the premium charged?


2) Did your travel itinerary have a hop over in India and a travel between 2 Indian cities after landing in India? In that case, it's possible that Ibibo gave you a domestic travel insurance only for the India leg of travel (between 2 Indian cities).


You have a weak case. The policy wordings shared by you in your question clearly state that the geographical scope of coverage is India. Insurance Regulatory and Development Authority of India and/or Insurance Ombudsman will not be helpful in this case.


However, unless your travel itinerary included air travel between 2 Indian cities, this clearly is a case of mis-selling on the part of the air ticket aggregator. Consumer Court would be the best GO TO AUTHORITY in that case.


Do let me know your answers to points 1 and 2.


Asad Akbar

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02 Jul, 2021
Sachin Syam
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02 Jul, 2021
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02 Jul, 2021
Sachin Syam
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03 Jul, 2021
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03 Jul, 2021
Sachin Syam
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10 Jul, 2021

Hey Sachin,


This indeed is a strange case. I see there is a legit consumer court case possible due to harassment caused to you and a proper case of mis-selling.


Even if they have refunded you the amount, it does not limit their mistake. You can pursue this case.


Anuj

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10 Jul, 2021
Sachin Syam
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13 Jul, 2021
Sachin Syam
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