IFSO Case Study

In January 2020, Mr B arranged cover for a trip to Bali, between 5 April 2020 and 17 April 2020. 

In February 2020, Mr B cancelled the trip, due to the outbreak of Covid-19. 

Mr B made a claim to the insurer for reimbursement of his airfares and accommodation costs. 

The insurer relied on the pandemic exclusion in the policy to decline the claim. Mr B made a complaint on the basis that he arranged the policy before he was aware of the Covid-19 pandemic.

The case manager’s assessment:

The case manager reviewed the wording of the pandemic exclusion and noted that it was broad. 

The pandemic exclusion included claims related to both a “likely pandemic” and “the threat” of a pandemic. 

The case manager explained to Mr B that the pandemic exclusion applied to the circumstances of his claim. 

The cancellation of the trip was due to Covid-19, which was a “likely” pandemic in February 2020 and officially declared a global pandemic on 12 March 2020. 

Following discussions between the Case Manager and the insurer, the insurer offered to cancel the policy and reimburse Mr B’s premiums. Mr B accepted the offer in full and final settlement of the complaint.

March 2021

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