Crystal Cruises Impending Bankruptcy

[PaulMCO]

Steve -- I talked with you on the phone regarding the situation of Crystal and its possible bankruptcy in the near future.  We discussed several points.  I think the Community might gain some insight.

 

What should passengers do to protect themselves from cruise line bankruptcy?

How should you handle claims if a cruise line does go through the bankruptcy process (ie paper work)?

Will insurance pay for claims against rolled over payments (so call paid future cruise credits)?

How long do you have to wait for cruise line not to refund you before filing a claim?

Do you have to first file a claim with your credit card company and get denied before filing with insurance?

 

Thanks....

[iamtrustworthy]

12 hours ago, PaulMCO said:

Steve -- I talked with you on the phone regarding the situation of Crystal and its possible bankruptcy in the near future.  We discussed several points.  I think the Community might gain some insight.

 

What should passengers do to protect themselves from cruise line bankruptcy?

How should you handle claims if a cruise line does go through the bankruptcy process (ie paper work)?

Will insurance pay for claims against rolled over payments (so call paid future cruise credits)?

How long do you have to wait for cruise line not to refund you before filing a claim?

Do you have to first file a claim with your credit card company and get denied before filing with insurance?

 

Thanks....

Hi PaulMCO,

 

> What should passengers do to protect themselves from cruise line bankruptcy?

 

They need to find out if the policy they are considering (or already have bought) buying covers Third Party Travel Supplier Financial Default. While some of the coverages in a Trip Cancellation plan are complicated to understand, in my opinion, Third Party Travel Supplier Financial Default is not.

 

Unfortunately, this benefit is often explained incorrectly. Here's how Third Party Travel Supplier Financial Default works:

https://tripinsurancestore.com/blog/third-party-travel-supplier-financial-default/

 

> How should you handle claims if a cruise line does go through the bankruptcy process (ie paper work)?

 

If your policy covers Third Party Travel Supplier Financial Default, you need to find out how your policy defines “Supplier Financial Default”.

 

A common definition of “Supplier Financial Default” is a complete suspension of operations due to financial circumstances whether or not a bankruptcy petition is filed.

 

In other words, just the act of filing for bankruptcy or becoming bankrupt doesn’t necessarily qualify as a valid Financial Default claim. The 3rd Party (not who you booked directly with) travel supplier has to completely cease operations.

 

Next, you will have to read and follow the claim procedure instructions. We help our customers with claims, and in my opinion, if someone sold you your travel insurance policy they are morally obligated to help you with your claim because they earned income from your sale.

 

> Will insurance pay for claims against rolled over payments (so call paid future cruise credits)?

 

For the companies I am the most familiar with, future cruise credits (FCCs) that were issued because your trip was cancelled due to Covid are insurable if you can prove that you originally paid money that was later issued as a FCC. Bonus FCCs aren't insurable. If you do not have a clear accounting statement from your travel agent or the cruise line, make sure you get one before you need it because it might be hard to get it later.

 

> How long do you have to wait for cruise line not to refund you before filing a claim?

 

If the cruise line, or other travel supplier, has met your policy's definition of “Supplier Financial Default”, I suggest you file the claim as soon as you are able so you can get in line before other people filing claims.

 

> Do you have to first file a claim with your credit card company and get denied before filing with insurance?

 

No.

 

I hope this made sense.

 

Steve Dasseos

[PaulMCO]

On 1/25/2022 at 1:07 AM, iamtrustworthy said:

Hi PaulMCO,

 

> What should passengers do to protect themselves from cruise line bankruptcy?

 

They need to find out if the policy they are considering (or already have bought) buying covers Third Party Travel Supplier Financial Default. While some of the coverages in a Trip Cancellation plan are complicated to understand, in my opinion, Third Party Travel Supplier Financial Default is not.

 

Unfortunately, this benefit is often explained incorrectly. Here's how Third Party Travel Supplier Financial Default works:

https://tripinsurancestore.com/blog/third-party-travel-supplier-financial-default/

 

> How should you handle claims if a cruise line does go through the bankruptcy process (ie paper work)?

 

If your policy covers Third Party Travel Supplier Financial Default, you need to find out how your policy defines “Supplier Financial Default”.

 

A common definition of “Supplier Financial Default” is a complete suspension of operations due to financial circumstances whether or not a bankruptcy petition is filed.

 

In other words, just the act of filing for bankruptcy or becoming bankrupt doesn’t necessarily qualify as a valid Financial Default claim. The 3rd Party (not who you booked directly with) travel supplier has to completely cease operations.

 

Next, you will have to read and follow the claim procedure instructions. We help our customers with claims, and in my opinion, if someone sold you your travel insurance policy they are morally obligated to help you with your claim because they earned income from your sale.

 

> Will insurance pay for claims against rolled over payments (so call paid future cruise credits)?

 

For the companies I am the most familiar with, future cruise credits (FCCs) that were issued because your trip was cancelled due to Covid are insurable if you can prove that you originally paid money that was later issued as a FCC. Bonus FCCs aren't insurable. If you do not have a clear accounting statement from your travel agent or the cruise line, make sure you get one before you need it because it might be hard to get it later.

 

> How long do you have to wait for cruise line not to refund you before filing a claim?

 

If the cruise line, or other travel supplier, has met your policy's definition of “Supplier Financial Default”, I suggest you file the claim as soon as you are able so you can get in line before other people filing claims.

 

> Do you have to first file a claim with your credit card company and get denied before filing with insurance?

 

No.

 

I hope this made sense.

 

Steve Dasseos

Perfect -- thanks Steve.