DESTINATION UNKNOWN

WITH HOLIDAYING THIS YEAR STILL FRAUGHT WITH UNCERTAINTY, ROSE MURRAY-WEST ASKS THE EXPERTS HOW YOU CAN BOOK SAFELY AND NOT BE LEFT OUT OF POCKET...

DESPITE rumours of vaccine passports and an apparently ‘irreversible’ reopening of UK attractions and hotels on the cards, this year’s holiday season – at home and abroad – still looks hugely uncertain.

This means that getting the right travel insurance, booking with reputable holiday providers and understanding how to reclaim for cancelled plans is more important than ever, especially since many insurers have removed cover that would have protected holiday payments against Covid cancellations.

Figures from the financial ombudsman – which deals with consumer complaints about travel insurance – show that complaints about the products have risen massively since the pandemic started, while more of these complaints than before are being upheld, suggesting that insurers are not always acting fairly.

Brian Brown, consumer finance expert at financial product rating expert Defaqto, says that policies have changed as well, so buyers need to be wary. ‘Insurers have altered their policies to specifically deal with Covid problems, either to give cover for things like cancellation due to catching Covid, or to exclude those claims. Customers need to pay close attention when buying insurance cover to see what Covid-19 cover their policy gives them,’ he says.

Booking a holiday in a pandemic requires a different attitude towards your travel plans to ensure you don’t end up out of pocket.

Here, our experts answer frequently asked questions about how to book safely in the current circumstances.

Q. I can’t go on holiday because of coronavirus restrictions in the place I’m travelling to. Can I get my money back?

All travel insurance policies are different, but if you booked the holiday before the pandemic became a ‘known event’ (unlikely by this point since this was in the early months of 2020), then your travel insurer is unlikely to pay out, says Charles Offord (inset right), managing director of Co-op Insurance.

He suggests contacting your travel provider, especially if they have a Covid-19 guarantee in place.

‘Contact your travel providers – airline, tour operator, travel agent, etc. – in the first instance to seek a refund; as many are currently offering Covid money-back guarantees,’ he says.

Q. I can’t go on holiday because the country I want to visit is now on a ‘Red List’. Who pays out?

If the Foreign, Commonwealth and Development Office (FCDO) changes its advice about whether you can travel to a country, this can, in some cases, trigger the ability to claim on insurance.

However, Brian Brown, at Defaqto, says that most insurers have changed their policies since the pandemic, so that if a country goes on the ‘Red

List’ you won’t be covered for cancelling. ‘Before the pandemic around half of insurers would have paid claims for cancellation due to the FCDO changing its advice and telling you not to travel to a destination.

‘Now, almost every policy excludes these claims,’ he says. So check your policy first, but the likelihood is you won’t be covered and can only seek redress from your travel provider.

Q. If I need to reclaim money for a cancelled trip, should I ask my insurer first, or the airline or holiday company?

You should always contact the holiday company or airline you booked with first, says Antony Martin, managing director at InsureFor.com.

‘If a consumer buys a holiday and then it is cancelled by the holiday company, the customer should approach them first for a refund.

‘If the holiday company or airline cannot offer a refund, that’s when a claim can be made through the travel insurance company.’

Q. I’ve only been offered a credit note or voucher, and I wanted my money back. What can I do?

This depends on the type of holiday you have booked. You have specific rights if you book flights with an airline or a package holiday. In these cases you can push for a full refund.

It’s less clear-cut in other cases, such as if you’ve booked aspects of your holiday separately. The Competition and Markets Authority (CMA) has stepped in to give guidance on whether refunds must be given, but this is guidance not law.

Head of the CMA’s Covid-19 Taskforce Will Hayter says: ‘Our view is that consumers will generally be entitled to a refund when they have paid in advance for services or goods that cannot be provided because of legal restrictions as a result of the pandemic.’

If you are given a credit note or voucher by a company that is ATOLprotected, there is currently some protection from the Government if the firm goes bust.

This protection only applies to those vouchers issued before April 30 however, so you will need to check whether this has been extended.

Jane Hawkes (inset, top right), consumer travel expert at ladyjaney.co.uk, has a warning about accepting other types of vouchers. ‘It is worth remembering that vouchers do not have the same protection as refund credit notes so if you are in doubt then it would be prudent to contact your insurer before accepting them. ‘

Q. What happens if I have a positive coronavirus test or am asked to isolate and so can’t travel?

Unless your airline or holiday provider has its own specific policy on this, they are unlikely to refund you. Instead, you will have to rely on your insurance provider, and policies vary widely. ‘Around three-quarters of travel insurers will pay if cancellation is due to the customer having a positive Covid test before travelling, while one in three will pay if the cancellation is due to being told to selfisolate by the NHS,’ says Brian Brown at Defaqto (left). ‘Only 16 per cent of insurers will pay for the extra costs of extended stay overseas due to being denied boarding after catching Covid-19.’

Some insurance policies will cover you if you are told to isolate by NHS Test & Trace, but this is no means certain in every case – so you will have to check the small print.