Article: Does Travel Insurance Cover Lost Points?

[AFF Editor]

Does Travel Insurance Cover Lost Points? is an article written by AFF editorial staff:

Does Travel Insurance Cover Lost Frequent Flyer Points?

Travel insurance may reimburse you for lost frequent flyer points if your trip is disrupted and you can't recover the points another way.

www.australianfrequentflyer.com.au

You can leave a comment or discuss this topic below.

 

[dsotm]

Hmmmm, I didn't know that the Amex Platinum Charge card doesn't cover international travel insurance if points are used for the flights. I've just booked to Europe with Krisflyer but "paid" half with Membership Rewards Points and te other half with flight points earned on SA.

 

[GlennT]

The seasoned international traveller accustomed to stitching together a trip using points/miles from various programmes over numerous airline alliances, and paying taxes and fees with unrelated credit/debit cards is totally stuffed from an insurance perspective if things do go pear-shaped. Insurers couldn't possibly believe these people even exist, so don't expect them to come to the rescue!

 

[dsotm]

I'm more worried about the ground travel part of the journey, luggage loss, illness, etc. I'm not sure if they are covered under the AmEx T&C's if the flights are done with points. I'll have to call them.

 

[encryptededdy]

It might be worth adding that from the last time I researched, the Amex Qantas cards will cover trips booked with Qantas points provided the co-pay is paid on the amex.

 

[dsotm]

It might be worth adding that from the last time I researched, the Amex Qantas cards will cover trips booked with Qantas points provided the co-pay is paid on the amex.

Actually I do remember something about that. Thanks.

 

[Ktan89]

Hmmmm, I didn't know that the Amex Platinum Charge card doesn't cover international travel insurance if points are used for the flights.

Really? I thought that they did. I'll have to read the T&Cs again..
I always book and pay QF reward flight taxes with AMEX Plat Charge and thought it was covered

 

[dsotm]

Really? I thought that they did. I'll have to read the T&Cs again..
I always book and pay QF reward flight taxes with AMEX Plat Charge and thought it was covered

I'm still confused.

 

[andye]

My understanding is that by the strict definition the points for the outbound must be accrued using points earned on the card
Technically you could be denied if you haven't transferred sufficient QF/VA/MR points to the used FF programme previously
In practice, I'm not sure that the requirement is enforced but its usually a good idea to be sceptical about insurance coverage

 

[MEL_Traveller]

The seasoned international traveller accustomed to stitching together a trip using points/miles from various programmes over numerous airline alliances, and paying taxes and fees with unrelated credit/debit cards is totally stuffed from an insurance perspective if things do go pear-shaped. Insurers couldn't possibly believe these people even exist, so don't expect them to come to the rescue!

I understand your anxiety but I don’t believe there’s any basis to this.

In many cases CC insurance offers the same or better benefits than a regular paid policy. They are unwritten by the same companies as paid policies. The PDS is always key.

It starts to get complex with some cards requiring total points spend to have been accrued on the card previously. But others are much simpler… for example ANZ only requires $250 spend… nothing else.

If paid polices can understand and deal with complex award itineraries, CC polices will be able to as well.

 

[Daver6]

I'm still confused.

I don't see anything in the T&Cs that say the points must be accrued on the platinum card. </lounge chair expert>

 

[pomona]

NB, as Amex Travel Insurance is actually Chubb, hidden in the PDS is a statement that insurance only applies to RETURN travel, as shown in the article.

 

[Withnail & I]

The article states, “Travel insurance would not generally refund you for delays or cancellations caused by the airline, as it’s the airline’s job to rebook or compensate passengers for this.”

But here’s the problem: most airline Conditions of Carriage require them to make reasonable attempts to arrange another flight but if they can’t (and sometimes they can elect not to even do this) then they must refund all your points and taxes. But if you have booked a reward flight ie on low points and they cancel it at the last minute and tell you there are no rewards flights seats left then you are stuck with the promise of the return of those points and taxes but you will lose your precious flights. In this event you will either have no trip or have to pay for last minute (potentially very expensive) flights. This appears to be a legal nightmare and would only get more complicated if you booked through QF in QF points for a partner airline’s metal flight (ie not QF coded) and that partner cancells. There are a number of threads that show this happened to a number of people earlier this year, particularly when CX cancelled Australian flights to Hong Kong and QF just tried to refund the rewards points leaving them stuck in Australia with all their o/s hotels etc booked but potentially inaccessible.

An insurance policy that would pay the difference between cancelled reward seats and replacement revenue seats in the same class would be very reassuring but I’m not sure it exists?