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“I am fearful I will lose the money we worked so hard to save”

February 2, 2010

Michele Keller was all set to take a dream vacation to the Dominican Republic through Apple Vacations last year, when her significant other fell ill. After he took an unexpected turn for the worse, she learned that the insurance on her vacation didn’t cover her the way she though it would. Now she’s holding a voucher for a vacation she’s never likely to use.

Could this insurance mix-up have been prevented? And what exceptions, if any, do tour operators offer for customers who can’t travel because of illness — or death?

I’ve covered bogus travel insurance in the past on this site. But Keller’s insurance wasn’t fake; it just didn’t cover her the way she had hoped.


She explains:

Last March, my significant other and I planned our dream trip to the Dominican Republic. Two weeks before we were suppose to leave he became ill and we had to cancel our trip. Fortunately, we had taken out insurance. I thought the insurance included a refund.

He ended up in the hospital diagnosed with terminal cancer. He passed away in August. I tried to get a refund but was told by the travel agent that all I could do was reschedule by next June. They said if they could sell my package for cash I could get some money back.

I am still trying to get over my loss and am having a hard time doing so. I do not want to take a romantic getaway by myself and cannot afford to lose the $2,500 that I paid for the trip. I have tried to contact Apple Vacations with no luck. I am fearful I will lose the money we worked so hard to save.

I’m troubled by one thing: Keller said she thought the insurance included a refund, but it didn’t. Who would have put that idea in her head, if the policy clearly said otherwise? Did she read the policy? Did her travel agent tell her something that wasn’t quite accurate?

I contacted Apple Vacations to find out. Here’s the company’s response:

Thank you for sharing the concerns of Ms. Keller with us at Apple Vacations. We are truly sorry for her loss, and can understand how unsettling it would be to now travel alone.

As you are no doubt aware, Apple Vacations offers various levels of trip protection to our passengers through an outside insurance provider. Our passengers who purchase the AVOK product are given the option of canceling for any reason prior to travel, with reimbursement in the original form of payment (cash or credit card refund), or reimbursement in the form of future travel vouchers with Apple Vacations. Apple Vacations has been offering the more expensive “cash back” option since July of 2007.

As you can imagine, it is a precarious situation we find ourselves in when we are asked to extend benefits of a more expensive insurance policy (i.e. cash back), to a customer who purchased a voucher back only policy. It probably does not need to be said that the highly regulated insurance industry frowns on this type of benefit pay out, as some might argue it unfair to those who paid extra for the actual cash back policy receiving the same benefit as one who did not. Long story short, we would be setting ourselves up for a lot of scrutiny
and it would be a huge disservice to all of our passengers if we did this.

While Ms. Keller’s travel agent gave her correct information regarding her voucher refund, we do not show any record of Ms. Keller or her travel agent asking Apple Vacations for consideration of a cash instead of voucher refund. We have Customer Care process’s and procedures which would have allowed us the opportunity to look at this case on an individual basis and make a determination before she felt it necessary to ask you to step in. If Ms. Keller had written to us, her letter would have found it’s way to my desk, and I would certainly
have felt an exception was necessary as the death involved an elderly passenger, and as I said, I can imagine it would be quite difficult for Ms. Keller to travel alone in the future.

Apple Vacations does not set policies in this manner, nor are our policies created this way. However, in this situation, we wanted to make an exception, in hopes that it gives Ms. Keller some peace of mind. If you would, please let Ms. Keller know that we will void the vouchers she was issued and issue a check to her within the next 7-10 days. If you or Ms. Keller has any questions, please do not hesitate to contact me.

Ah, I love a happy ending! (I just heard from Keller, and she says she received her check.)

As I read her account and Apple Vacations’, I’m left to conclude that Keller tried to contact Apple by phone to resolve this. If she’s written the company a brief, polite email, she would have gotten her money back months ago.

Probably.

(Photo of lovely DR beach by X Ceccaldi/Flickr Creative Commons)

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

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11 comments

  • http://www.singleparenttravel.net John W. Frenaye

    This is one of the inherent flaws of supplier provided “insurance”. More often than not, it is a “trip cancellation waiver”–vouchers for future trips.

    Third party insurance is almost mandatory for any international travel these days and certainly for anyone that is elderly.

    While the trip cancellation waivers appear to be a bargain on the surface, rarely do they offer the same coverage.

    Here’s a tip–if the “insurance” is a flat fee, it is usually a voucher type program. If it is tied to the cost of the trip and/or the age of the traveler, it is likely a legitimate insurance policy.

  • Don

    I travel extensively internationally and have sought reliable information re travel insurance from my travel agents, AAA, air carriers, my personal insurance agent, etc. and have not found anyone who can explain in layman terms what is covered and what is not covered. Usually they push a brochure on me that has some information, and has a disclaimer that the brochure is not the policy, with a web address to a policy filled with incomprehensible legalise. Where can a consumer go to get real information in plain english?

  • Thalassa

    Good for Apple for making this exception! I, too, am sorry for Ms. Keller’s loss, but technically, the company is correct – make sure you know what you’re buying when you buy insurance.

  • http://www.wanderingeducators.com/marketplace/apparel/do-mbt-shoes-really-work.html jessiev

    what is crazy is that i think most people don’t buy insurance, yet want the benefits of insurance. i am glad this was resolved for her – WHAT a difficult year she’s had.

  • JS

    Interesting about the email being more effective than the phone call. I have one thing, though, that I like to try before sending an email. I like calling first to see if I can resolve the problem, but then if that phone call fails, then I would email the company to try to resolve the problem, referencing my failed attempt via phone.

    That’s tended to yield better results for me.

    Nice, Chris, about helping the woman above with her problem!

  • Paulette Baker

    Kudos to Apple for making an exception in this case. I’ll be more likely to consider them in the future.

  • http://refreshrenewexplore.com Rachel

    I think the email from YOU worked better than any communication from a single consumer ever would. That’s the difference that led Apple to create an immediate exception.

  • LeeAnne

    Now THAT is a well-worded response letter. Apple Vacations explained the situation, clearly stated some very valid reasons why they normally wouldn’t extend a refund, and then offered to do so anyway…making themselves appear incredibly compassionate and customer-oriented, while maintaining their professionalism and not appearing to be “pushovers” for a good sob story.

    Other businesses that read this blog, take note! This is a template for the RIGHT way to deal with a customer problem.

    Of course I’d love to believe that, had Ms. Keller written an email directly to Apple, without involving Chris, that this would have been the outcome. But after reading this blog for as long as I have, the cynic in me says, “not likely.” Still, kudos to Apple Vacations for doing the right thing, and especially for responding so professionally.

    Mama’s Fish House, you reading this???

  • MrsKruse

    That’s why you should read your insurance policy word for word…you should always be able to get a copy before taking a policy out. Sure, it takes time, but no point paying a few hundred dollars for something that won’t do what you think it will to save 20 minutes.

  • Justin

    I honestly think that Chris’s intervention has a lot to do with many “Happy Ending” resolutions. What would people do with him? Certainly, his service and connections come to the aid of those who would otherwise find little help elsewhere. Sure, you can seek an attorney, but who is going to spend that kind of money most times. What you would recoup in small claims or in court might take ages. Kudos Chris. My sympathies to this lady.

    Cynic in me wonders if they sold her something and didn’t explain it properly. Elderly people are often the easiest group to be taken advantage of.

  • Jesse

    I’m very pleased that Apple is one of the few travel companies out there that’s willing, on and individual basis, to make exceptions to ink & paper rules.

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