CNN Travel Article - Bond Insuring Cruisers From Cruise Company Bankruptcies

[MinnCruzer]

Curious if this is true or fake news? If true, it makes me feel at ease while patiently awaiting my cruise refund from a Princess cancelled cruise.

 

CNN ARTICLE

What if the cruise company declares bankruptcy?

If your cruise line declares bankruptcy and the ship is departing from a US port, you'll be covered, says lawyer Christopher Kende.

"There's a requirement under the Federal Maritime Commission that cruise lines put up a bond to secure what's called unearned passenger revenues," says Kende, a specialist in maritime law at the firm Cozen O'Connor.

Even if the company is registered outside of the United States, or the ship is flagged in another country, Kende says your booking will be covered in case of bankruptcy or another disruption.

If you're sailing from an international port, Kende notes that passengers could be more exposed to risk. "If it's not a US-based cruise, it would probably depend on the law of the departure point of the cruise or the flag of the vessel," he explains.

Travel insurance may help, too. According to AIG's Scott Adamski, some travel insurance includes financial default coverage that would protect your money in case of a bankruptcy declaration. (As with other insurance matters, he noted that individual plans vary widely.)

[pms4104]

34 minutes ago, MinnCruzer said:

Curious if this is true or fake news? If true, it makes me feel at ease while patiently awaiting my cruise refund from a Princess cancelled cruise.

 

CNN ARTICLE

What if the cruise company declares bankruptcy?

If your cruise line declares bankruptcy and the ship is departing from a US port, you'll be covered, says lawyer Christopher Kende.

"There's a requirement under the Federal Maritime Commission that cruise lines put up a bond to secure what's called unearned passenger revenues," says Kende, a specialist in maritime law at the firm Cozen O'Connor.

Even if the company is registered outside of the United States, or the ship is flagged in another country, Kende says your booking will be covered in case of bankruptcy or another disruption.

If you're sailing from an international port, Kende notes that passengers could be more exposed to risk. "If it's not a US-based cruise, it would probably depend on the law of the departure point of the cruise or the flag of the vessel," he explains.

Travel insurance may help, too. According to AIG's Scott Adamski, some travel insurance includes financial default coverage that would protect your money in case of a bankruptcy declaration. (As with other insurance matters, he noted that individual plans vary widely.)

Can you please share the link?

[MinnCruzer]

https://www.cnn.com/travel/article/cruise-industry-coronavirus-aftermath/index.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fcnn_travel+(RSS%3A+CNN+-+Travel)

[voljeep]

it's CNN, of course it Fake News , just like Fox News, BBC, ABC, Motley Fool, HSN,  Cartoon Network, … 

[npcl]

  The amount of the bond, if I recall correctly, is only around 30 million.  Compare that to the 4.6 billion CCL had in customer deposits in its last filing.  Not very many would get their refund from the bond money.

[JT1962]

I believe the bond is $ 32 million now, per the FMC website. Unless that is per cruise, and not per cruise line, it would cover less than 30 average cruises - 1,500 passengers at $ 750 each.

[Thrak]

17 minutes ago, voljeep said:

it's CNN, of course it Fake News , just like Fox News, BBC, ABC, Motley Fool, HSN,  Cartoon Network, … 

 

WHAT?   Noooooooooooooo.... Not Cartoon Network! Surely that is a reliable source of information. I know for a fact that, as long as you don't look down, you can walk or run straight off a cliff and not fall. It's only when you look down and realize what you've done that gravity takes over. I've seen it way too many times to doubt that it's true.

[npcl]

14 minutes ago, JT1962 said:

I believe the bond is $ 32 million now, per the FMC website. Unless that is per cruise, and not per cruise line, it would cover less than 30 average cruises - 1,500 passengers at $ 750 each.

The amount is total, not per cruise.

[bookmama22]

I saw earlier that Norwegian may be the first cruise line to declare bankruptcy. It was from USA Today. They state they have "substantial doubt" about their ability to "continue as a going concern" in the wake of the pandemic.There is a more in-depth statement as part of their SEC filing.

[dearinger]

2 hours ago, voljeep said:

it's CNN, of course it Fake News , just like Fox News, BBC, ABC, Motley Fool, HSN,  Cartoon Network, … 

Voljeep I never can quite tell if you are serious or not most of the time.. 😂

[voljeep]

7 minutes ago, dearinger said:

Voljeep I never can quite tell if you are serious or not most of the time.. 😂

Thanks - that is much appreciated, really

 

I try to lighten up this forum sometimes due to all the Covid-19 fatigue … that is all too real

8 minutes ago, dearinger said:

Voljeep I never can quite tell if you are serious or not most of the time.. 😂

 

[PrincessLuver]

4 hours ago, voljeep said:

it's CNN, of course it Fake News , just like Fox News, BBC, ABC, Motley Fool, HSN,  Cartoon Network, … 

 

Thank god you did not list the Princess Patter as fake news!!!!

[caribill]

9 hours ago, voljeep said:

it's CNN, of course it Fake News , just like Fox News, BBC, ABC, Motley Fool, HSN,  Cartoon Network, … 

 

Once again you are in error.

 

Spongebob SquarePants is the most trusted name in journalism since Walter Cronkite retired.