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Question:

We have a client insured under a corporate travel policy. One of their staff missed flights and had to get new flights due to a spelling mistake in their name on the tickets. This error cost $4500 to fix.

The insurer is declining the claim as they deem it not unforeseeable. The wording for cover is "Any other unforeseen circumstances that directly impact the insured person's travel which are outside the control of you or the insured person......"

The insurer's comment is "It is still the passenger's responsibility to ensure that all travel document/s including flight bookings are in order and accurate prior to the departure to avoid any delays and issues with the airline."

I would appreciate some opinions as to this being reasonable.


Reply:  Crossley Gates

The error and the missed flight are still unforeseen by the insured. In other words, through the insured's eyes, the insured did not foresee this happening.

The insurer seems to be arguing that the insured was negligent, but the policies cover negligence (short of recklessness).



March 2020

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