Robert and Beverly Isman were about to cast off on a once-in-a-lifetime Nile river cruise when they received a devastating medical diagnosis: Beverly had advanced pancreatic cancer.
The Ismans canceled their trip immediately and filed a claim on their trip protection policy. But almost nine months later, the $18,652 they’d spent on their vacation hadn’t been refunded.
“I’ve talked with at least four Overseas Adventure Travel representatives who said they would help,” Robert Isman told me. “None did. None got back to me. I am beyond frustrated.”
The Ismans’ odyssey may help you the next time you have to cancel your vacation. Let’s discover:
- Who is responsible for paying your travel insurance claim?
- What should you do when a travel insurance claim is delayed?
- What are some common mistakes when trying to speed up the claims process?
First, though, let’s find out what happened to these travelers.
Hear a discussion of this story
“Nobody else has been able to help me”
The Ismans had booked an Ancient Egypt & The Nile River itinerary leaving on October 18. It’s a seven-night Nile cruise with stops in Cairo, Luxor, Qena, Edfu, Kom Ombo, Aswan, and Abu Simbel — in other words, a real adventure.
But a few weeks before their departure, Beverly Isman started to feel unwell. She went to her doctor for testing, where she received the devastating diagnosis.
(For context, the five-year survival rate for advanced pancreatic cancer is 16 percent. So a delay of even a few weeks in processing an insurance claim is significant.)
The Ismans canceled their vacation and filed a claim through their travel insurance company, Allianz. But Allianz acts as a claims administrator for Overseas Adventure Travel, meaning that it’s up to the tour operator to pay after Allianz has OKd the claim.
Allianz quickly approved the claim.
And then, nothing.
The Ismans called Overseas Adventure Travel repeatedly and the company assured them repeatedly that they would get their $18,652. But the promises amounted to nothing, according to the couple.
“I am beyond frustrated,” Beverly Isman says. “We’re loyal customers. They’ve had
our money since October and I have no resolution.”
Beverly says she is exhausted, not just from fighting for a refund that she’s been promised, but also from the chemo treatments necessary to extend her life. She told me she wants a quick resolution, and if anyone ever deserved one, it’s her.
Who is responsible for paying your travel insurance claim?
If you buy a travel protection plan through a tour operator like Overseas Adventure Travel, who is responsible for paying the claim?
It’s the tour operator.
Remember the Vantage bankruptcy last year, where thousands of travelers ended up with worthless travel insurance policies? The customers thought they had legitimate travel insurance. In fact, the tour operators were writing the policies and using a third party — a well-known travel insurance company — as a claims administrator.
In the Ismans’ case, they had already gone through the approval process with Allianz, the claims administrator. Now it was up to Overseas Adventure Travel to pay.
Why wouldn’t the company pay? Sometimes, a case like this can legitimately — and innocently — get lost in the system waiting for approval. Other times, it is part of a concerted effort by various employees to slow down the approval process to conserve cash. In extreme cases (like Vantage), the company was teetering on the brink of bankruptcy and couldn’t afford to pay any claims.
But if you’re in a similar situation and you’re waiting for a travel insurance claim to be paid, you’ll want to first find out who is responsible. And in this particular case, it was Overseas Adventure Travel.
What should you do when a travel insurance claim is delayed?
Most travel insurance claims should be resolved and paid within a few days. More complex claims can take up to a month. If you’ve waited longer than that, you’ve hit a snag.
Here’s what to do:
Know the timeline
Travel insurance claims are not automatic — even the easy ones. There’s a process that must be followed. Most travelers assume it’s an issue of complexity, but it’s actually a number. Any claim of over $10,000 has to go through multiple approvals, and that’s the primary reason for the payment delay. So if your claim is over $10,000, don’t forget to pack your patience.
Did you forget something?
One of the most common causes of a delay is incomplete paperwork. Make sure you furnish your travel insurance company or claims administrator with all the requested information. Otherwise, you could be looking at a lengthy delay. Travel insurance companies typically require a completed claim form, receipts for any covered expenses, proof of the travel disruption, and police reports (depending on the type of claim).
Get in their face
Don’t just sit there. Follow up with your insurer to ask about the status of your claim. Some travel insurance companies allow you to track your claim online, which is helpful. You may need to call, but if you do, ask the agent to email you with confirmation of your conversation. (Remember, talk is cheap, and not as helpful as a paper trail.)
Exercise your rights
Most travel insurance companies have a dispute resolution process. I outline it in my complete guide to travel insurance. Some policies also allow for arbitration if you disagree with the claim settlement.
Consult a pro
For complex claims or if you feel your insurer is acting unfairly, consider seeking help from a consumer advocacy organization or an attorney specializing in insurance disputes. You can also file a complaint with your state insurance commissioner. Our advocacy team is always happy to help, of course.
Bottom line: Don’t file a claim and forget about it. Stay on top of your travel insurance company until you get paid.
What are some common mistakes when trying to speed up the claims process?
So what went wrong with this claim?
There’s no excuse for withholding a claim from someone who is gravely ill, and whose claim has already been approved. None whatsoever.
But the Ismans did a few things that may have slowed down the process. Those include:
- Over a period of about nine months, they exchanged only a few emails and had four phone conversations with Overseas Adventure Travel. To really keep the pressure up, you need to send weekly reminders to the company.
- There was minimal outreach to the executives at Overseas Adventure Travel and its parent company Grand Circle Travel. You have to start looping in the executives on this type of correspondence. And you have to do it often.
- Finally, in exasperation, the Ismans threatened to take Overseas Adventure Travel to court. This may have sent their case to the legal department, where the company would have waited for the lawsuit to be filed without paying the claim.
As I mentioned before, none of these should have stopped the Ismans claim from getting paid, but it might have slowed the process.
Will they get their $18,652 back?
Our advocacy team was deeply troubled by this case. The Ismans claim should have been paid promptly by Overseas Adventure Travel, even if the couple had been a little too patient and then threatened to sue.
Our advocate, Dwayne, asked Overseas Adventure Travel to review the claim. A short while later, we received an update from Bob Isman. He said he had heard from the tour operator and that when he asked why it had delayed his claim, a representative said, “I’m not sure.”
“I’m pleased to let you know that we received our $18,652 refund check today, along with a separate check for $354, which I assume is to cover interest on the delayed payment,” he said. “Thank you so much for helping to shake things loose with Overseas Adventure Travel.”
