A customer has money deducted from his fixed benefit because he’s already had compensation from his airline

Travel Insurance

Sebastian’s flight home was delayed because of an air traffic control strike that was expected to last 22 hours.

What happened

He needed to get his family home, so he made his own arrangements to take himself and his family back to the UK. Sebastian hired a car to drive across the border, and paid for flights home from there with a different airline. 

Sebastian made a claim to his insurer for the hire car costs and the cost of his new flights.

His insurer said these extra costs weren’t covered, but paid him a fixed benefit based on the length of time his original flight would’ve been delayed. But the insurer deducted money from the benefit because Sebastian had already received some compensation from his airline under the cancelled flights directive. 

Our decision

Looking at the policy terms and conditions and taking into account what was fair and reasonable, we didn’t think Sebastian’s claim for extra costs was covered. His policy provided for a fixed travel delay benefit only. And, as the delay wasn’t on the outward journey, Sebastian wouldn’t have been entitled to make a claim for abandonment.

But, we didn’t think it was fair for the insurer to deduct money from the fixed benefit for the compensation Sebastian had received from his airline. We asked the insurer to pay the deducted amount.