Emma RadmoreFCA has published updates on Covid-19 related cancellations and insurance claims.
Its consumer guidance notes that consumers should first speak to their travel provider, and should think carefully before accepting vouchers instead of a refund – including the likely effect on any insurance claim of accepting a voucher. It also notes this applies to other goods and services, not just travel. The guidance explains the options for getting help from ABTA or ATOL, credit or debit card providers as well as travel insurers. It notes that whether a claim will be accepted under travel insurance depends on the terms of the policy, and that making a claim may have an impact on future premiums. The guidance also explains how FCA is encouraging insurers to work with policyholders, including in guiding them through making a claim under s75 CCA if that route is available to them. FCA plans further guidance shortly, to make consumer options clearer.
Its guidance to firms has updated the travel insurance section to reflect the consumer guidance and makes it clear FCA expects insurers to be aware of the circumstances policyholders find themselves in.
Finally, FCA has also updated its general Covid-19 information for firms, again to reflect this.