Saga of Covid-hit cruise

Mrs E.S. writes: I was on a cruise ship when Australia closed its ports, and when it was allowed to dock, I was permitted to disembark on condition I returned to the UK. I lost the rest of my holiday, and travelling home involved three nights in Sydney and four nights in Hong Kong. Saga Insurance has refused my claim on the grounds that it was a package holiday, when actually it was a bespoke holiday built around the cruise.

NOBODY has disputed that you lost part of your holiday because of Covid restrictions, or that you faced extra expenses to get home. The disagreement has been over who should compensate you. Saga felt that package travel regulations applied, so it should be the tour operator If Only that footed the bill. The Saga policy only kicks in if costs cannot be recovered from anyone else.

If Only was reluctant to deal with me and wanted to reach a decision in conjunction with your travel agent but it also contacted Saga, reaffirming that yours was not a package holiday.

Meanwhile, you complained to the Financial Ombudsman Service and allowed the Ombudsman to speak to me. The initial decision from Ombudsman was that although you booked various stages separately, your trip did constitute a package holiday, so If Only should pay you, and not Saga.

Surprisingly though, Saga then had second thoughts and let If Only off the hook. Saga said that the claim was complex, with multiple parties involved, but it recognised that this left you facing a challenging situation. It said: ‘Consequently, it has been agreed that the travel insurance should respond and settle the claim as a gesture of goodwill to bring the matter to a conclusion’.

So after months of discussions, claims and counter-claims, I am pleased that even though it could have declined, Saga has paid you £3,014.