NIB Travel Insurance Cancellation

[jfapmontes]

Hi there,

Just cancelled my travel in July with Qantas and they refunded my points back. However I used points for my travel insurance and I called up NIB and they are providing misleading information on their web site as well as with their call centre. So initially they offered a 12 month re-use of travel policy, but here's the kicker, only from the date of purchase not on the date of commencement of policy. So to me this is useless since I purchased this in Sept of 2019. So I said, that this is not acceptable, I wish to cancel and get a refund, they said we can't and will need to send this request to management for consideration. They were also quoting the cooling off period which was 30 days from date of purchase, which was the cancellation period for a full refund. Is this legit?

Cheers,
Joe

 

[MEL_Traveller]

Hi there,

Just cancelled my travel in July with Qantas and they refunded my points back. However I used points for my travel insurance and I called up NIB and they are providing misleading information on their web site as well as with their call centre. So initially they offered a 12 month re-use of travel policy, but here's the kicker, only from the date of purchase not on the date of commencement of policy. So to me this is useless since I purchased this in Sept of 2019. So I said, that this is not acceptable, I wish to cancel and get a refund, they said we can't and will need to send this request to management for consideration. They were also quoting the cooling off period which was 30 days from date of purchase, which was the cancellation period for a full refund. Is this legit?

Cheers,
Joe

I believe the 30 day cooling off period is legit - I could be wrong but I thought it was actually 14 days (but maybe insurance is 30).

Anyway - you still got use of your insurance from the time you purchased it. If anything had happened you would have been covered, and that's what it's there for.

See how you go when they escalate, you might be lucky for a refund, but ordinarily it's one of those things that you can't get a refund for if you don't need it.

 

[stoney]

I have also NIB Comprehensive policy which I have posted about in another refund thread. My belief is that the policy is for cover for a defined period i.e. from the time the trip commences to the time it finishes not from the time of purchase. The cooling off clause allows you to opt out of the insurance without a reason. tomorrow I commence a Disputed Transaction on my Westpac Black MasterCard to recover the cost as I have not made a claim on the policy.

 

[stoney]

I have lots of claims For refunds currently being fought with mixed success. One very disappointing claim was for the cost of a Russian visa for both myself and my wife, $412. The agency for obtaining the visa in Australia is Interlink Service who have flatly refused to refund claiming Russian legislation as preventing it. I will deal directly with the Embassy tomorrow to see if the agent is just holding back.

 

[MEL_Traveller]

I have also NIB Comprehensive policy which I have posted about in another refund thread. My belief is that the policy is for cover for a defined period i.e. from the time the trip commences to the time it finishes not from the time of purchase. The cooling off clause allows you to opt out of the insurance without a reason. tomorrow I commence a Disputed Transaction on my Westpac Black MasterCard to recover the cost as I have not made a claim on the policy.

Certain elements of the policy begin from the moment you pay, most notably the 'trip cancellation' sections. So if you get injured, or fall within one of the other reasons for needing to cancel your trip, you will be covered.

This could also have made a huge difference when it came to Covid... if you had travel insurance you might have been eligible for a full cash refund. If you did not, you may have only been eligible for a voucher, as per airline policy.

 

[stoney]

I agree that certain parts of the policy do commence immediately after purchase but there was no suggestion that there was a reason to claim anything before the trip commenced so in this case there should be a full refund of the policy.

 

[MEL_Traveller]

I agree that certain parts of the policy do commence immediately after purchase but there was no suggestion that there was a reason to claim anything before the trip commenced so in this case there should be a full refund of the policy.

I'm not sure the 'not making a claim' is a strong argument. By extrapolation that would mean someone returning safely from overseas could seek a refund because they didn't use it?

Policies are for insurance... 'in case' things go wrong. The pre-travel component is no different. There is a period where things could go wrong, and that's what we pay for.

That being said, some companies are refunding policies. But if yours is not, I think you need to strengthen the grounds on which you wish to lodge a complaint.

 

[stoney]

I'm not sure the 'not making a claim' is a strong argument. By extrapolation that would mean someone returning safely from overseas could seek a refund because they didn't use it?

Policies are for insurance... 'in case' things go wrong. The pre-travel component is no different. There is a period where things could go wrong, and that's what we pay for.

That being said, some companies are refunding policies. But if yours is not, I think you need to strengthen the grounds on which you wish to lodge a complaint.

Agreed! Thank you Mel_Traveller for clarifying that. I now accept your explanation.
The NIB PDS states:
"If the policy is cancelled by either the policyholder or us, we will refund the premium for the policy less a pro-rata proportion of the premium to cover the period for which insurance applied. However, we will not refund any premium if we have paid a claim or benefit under the policy "

So, The determination of proportionate assignment of risk for the period prior to the commencement of travel is beyond my knowledge and so it is the insurers assessment and determination of refund amount of the premium. I am in their hands.

Following the email received which denied any refund, I have sought a review considering the DEFAT level 4 determination. Hope they will view it favourably.

 

[MEL_Traveller]

However, we will not refund any premium if we have paid a claim or benefit under the policy "

And worth noting that your eligibility to request a refund depends on whether the company has paid a claim. Lodging a claim in and of itself would not invalidate your right to request the refund. This may be contrary to what you were advised on the phone by NIB.

 

[stoney]

And worth noting that your eligibility to request a refund depends on whether the company has paid a claim. Lodging a claim in and of itself would not invalidate your right to request the refund. This may be contrary to what you were advised on the phone by NIB.

Noted! I have not made a claim so should receive something reasonable. Thanks for the advice MEL_Traveller

 

[ANstar]

NIB sucks... they refused my claim for a hotel cancellation that I booked last year for travel this June stating they dont provide cover if its due govt restrictions... then I asked if I could get a partial refund for my policy as it still has 6 months and was told no - no refunds...

 

[DC3]

NIB sucks... they refused my claim for a hotel cancellation that I booked last year for travel this June stating they dont provide cover if its due govt restrictions... then I asked if I could get a partial refund for my policy as it still has 6 months and was told no - no refunds...

What gives? We all know that the government restrictions are due to COVID. They might be trying it on, hoping that people accept this.

 

[33kft]

What gives? We all know that the government restrictions are due to COVID. They might be trying it on, hoping that people accept this.

Seems like a pretty solid get out of paying clause to be honest. How could you describe a COVID claim without at some point referencing Government travel bans? In reality, i think it is simply a poor product that consumers should avoid. It would be nice if as a community AFF could work out which insurers did or did not cover COVID claims so we can spend our money wisely going forward.

 

[ANstar]

What gives? We all know that the government restrictions are due to COVID. They might be trying it on, hoping that people accept this.

Hi DC3/33kft .. just a follow... based on your posts I decided to dispute through the complaint process. I also advised that I also hold a foreign passport so the Aus govt restrictions would not of prevented me from leaving the country. I also told them I had no idea why my flight was cancelled as the airline never advised the reason for the cancellation. After 2 months of "investigation" they decided in this instance they would pay the claim. So thanks for the push to not accept it

 

[Hvr]

A month ago NIB wrote to me and offered a refund on my annual TI policy from March 18 this year,I answered the questions about when I last travelled, assured them I would not make a claim and sent off my application for a refund.

I got the email today saying it was approved and that I needed to send a bank statement with my name, BSB and bank account details to get the refund. (Approx $450).

Why not just refund it to my credit card? And why do they need a bank statement?

Any thoughts?

 

[DC3]

A month ago NIB wrote to me and offered a refund on my annual TI policy from March 18 this year,I answered the questions about when I last travelled, assured them I would not make a claim and sent off my application for a refund.

I got the email today saying it was approved and that I needed to send a bank statement with my name, BSB and bank account details to get the refund. (Approx $450).

Why not just refund it to my credit card? And why do they need a bank statement?

Any thoughts?

Personally, I would not send a full bank statement, but blank-out everything other than the information that they seek (which is often located at the top of page 1). Maybe phone them for other options if not comfortable with this.

I guess that you get to keep points earned from cc spend doing it this way.

 

[Hvr]

I replied to the email and got a reply today. They've changed their process and are prepared to refund to my credit card. Payment may take up to 15 days.

I'm happy with that, so all's well that ends well.