fwh the charge is for the insurance policy itself. It isn't relevant whether there were prediagnosed illnesses or not because the insurance company has already paid out for his claim, ie. deposit, less policy excess.

The charge is the travel agent wanting the cost of the insurance reimbursed to them as they offered it free but they have now cancelled the holiday, thus them losing any commission.

Bizzilady these costs are not about what the insurance company has or hasn't incurred, it's the fact that the travel agent has basically paid for their policy for them - therefore offering it as an incentive to book by giving this away free to the customer.

Am I barking up the wrong tree here?

Yes, you are - the insurance company has already paid out under the terms of the policy for the deposit forfeited as a result of Rhombus cancelling this holiday so it has cost them something. So it would appear that the premium was paid and the insurance policy has been activated.

Re comments about the size of the Premium, given that it covers a family of 4 including an adult with a known pre-condition (which I hinted might be the case) then depending on what that condition is then the premium is not necessarily excessive. My mother regularly has to pay in the region of £40/50 pounds extra over and above the standard premium in order to cover her for a week in Europe because of pre-existing health conditions. No one will touch her for an annual policy and we've given up even cosidering longhaul now because the premiums will be so prohibitive. So as fwh says, none of us here is in a position to comment whether the premium of £150 is appropriate or not because we don't know exactly what was being covered.

It sounds to me as if the deal originally offered is very similar to what my local independent TA does. They too offer 'free insurance' on the basis that they pay for this out of their commission from the TO - they are willing to take a lesser profit on the deal in order to secure the booking and have usually offered me a discount equivalent to the standard premium on the final price because I have an annual policy. When my mother joins us they have always made it clear that we will have to pay the extra to the standard premium to cover her pre-existing health condition. In Rhombus's case, to be fair to the TA, it looks as if they have bitten the bullet and not done this but paid the premium in full. But now that the holiday has been cancelled and they won't be earning the commision they expected on this sale and are looking for ways of the cost of the premium so they don't end up with a loss on this transaction. Whether Rhombus is liable for this now or not really is dependent on the nature of the terms and conditions they agreed to when they made the booking and as fwh has already said, none of us knows this, nor whether the TA will think it worth while pursuing him for it if he refuses to pay it.

As for them losing out because Rhombus will now take his future business elsewhere the reality might be that they will write-off this £150 pounds and put it down to experience but in future not make an open ended commitment to providing 'free' insurance which means future customers might lose out and those with complicated health conditions won't be accepted for any future deals like this in the first place. I think that sometimes we forget that when we say 'I'll never go back THERE again' that the 'there' breathes a sigh of relief at the prospect of 'not having to deal with that awkward customer ever again' :-)

SM

It seems strange to me that "free insurance" was given as a medical condition had been declared. The least the travel agent should have done was to state how much the insurance should have cost (I suspect more than the basic amount, due to the med cond) if it were to be paid for. Then you'd know if it was anywhere near £150. I know that's besides the point really, as if it isn't stated in writing that the insurance premium would have to be paid as a result of cancellation I would definitely stick to my guns and not pay.

I wonder if they subsequently sell the holiday to someone else would they then pay the £150 back?

No need to answer that one.....................

Perhaps the T. Agent should have bought an "insurance" policy to protect themselves against this eventuality.

It doesn't cost the T Agent a lot for these insurances anyway only a few pounds and then they charge £30 or what ever they want.
£150 is an excessive amount to pay even if they have pre existing med conditions for Europe.

I have pre existing med conditions a nd i never pay anything like £150 usually around the £35 mark.

When you are getting on in years and have med conditions thats when it gets really expensive.

Wow what replies......to answer a few of the questions:-

i) We have used the same independent TA for 8 years, but after this we will not be going back.

ii) My wife 2 years ago was diagnosed with an auto immune problem, which with steriod treatment was brought under control. At the time of booking we had to disclose any pre existing conditions for all the party i.e. 2 adults, 2 children. We did this and we were given our policy number.
This must mean that we are covered.

iii) The holiday was cancelled 4 months in advance, so was obviously resold by the Tour operator concerned.

iv) We have been paid out by the insurance company,less the excess on the policy.

v) The TA would have made his commission if we had gone on holiday, and this would have covered the ins.premium.

vi) We have sent doctors letters from the specialists involved with my wife's new chronic condition, which by the way nearly killed her. This was explained to the insurance company, who after 4 MONTHS of aggrevation, paid us out.

First thanks for the information - at least any replies can be based on fact and not conjecture.

You have used the same TA for 8 years and now they pull this trick! I agree with you that they no longer can expect customer loyalty.

You have explained that there was a medical condition and it is possible that this bumped up the premium. Even with annual policies medical conditions can and do inflate the cost.

You say the holiday was cancelled four moths in advance. There is no guarantee that it was resold, but any cancellation charges suffered by the agent will have been covered by the insurance/.monies already paid.

I would be inclined to request a full breakdown of the charges that they are attempting to levy.

Whilst here on HT many people complain, and in many cases resort to legal action to recover monies, it should not be forgotten that the TA can do the same. The small claims court is open to everyone.

Whilst I can understand you're not wishing to pay the money, should they take legal action then you would at least be able to defend it.

fwh

Hi why not go to citizens advice or trading standards, they may be able to help.
I have had holidays with free insurance in the past and had to cancel due to illness, but never had any problems about the TA asking for any money.

why not go to citizens advice or trading standards, they may be able to help.

The problem is that there is a bill for £150 - CAB and TS will not be able to assist without full information. They will say the same as me. Get a detailed account of the charges and then we can look at it.

It is not my intention to offend anyone, but without the full facts then no matter what anyone thinks, it is just personal opinions. They have NO LEGAL STANDING.

fwh

Yes but when they go to the trading standards they would need to take all their documents so they would have all the imformation at hand with them.
No good going without it.

The problem is that there is a bill for £150 - CAB and TS will not be able to assist without full information. They will say the same as me. Get a detailed account of the charges and then we can look at it.

It is not my intention to offend anyone, but without the full facts then no matter what anyone thinks, it is just personal opinions. They have NO LEGAL STANDING.

It all depends what was in their terms and conditions.
If they signed a document saying the free insurance was included in the terms and conditions they wont need to pay the £150.
Nobody would go to TS without all their relevant documents.
You don't need to get a detailed account.