Arbitration/Mediation/Travel insurance


My 81yr old wife was on her way to Canada.
Unfortunately she fell ill in the departure lounge at the airport, was unfit to board the plane and was taken to a local hospital.
She remained there for several days before returning home and decided to make a claim from her travel insurers.
The only item she claimed for was the price of her air-ticket.
The insurers eventually agreed to pay but from the airfare deducted an excess and the part of the airfare due in taxes.
While accepting the amount reduced due to the excess, she is surprised to find the insurers claiming they don't have to pay
the part of the fare listed as taxes.
Should the company pay all the fare (minus excess)?
Are they simply trying to dodge their commitments ?


There is a good chance that there is a clause buried in the fine print for your insurance contract that defines "fare" as the actual fare amount charged by the airline, minus any taxes or airport fees.  Taxes and fees can easily be as much as half of the typical ticket price and depends on the countries and airports of the itinerary.  

Obviously this is deceptive as you are led to believe you can get your ticket fare refunded when that phrase is used in the solicitation.  For fun you could file a grievance with your country's consumer protection office, or you could file a grievance with the government office that regulates air travel.  I am not sure you would get paid, but I think regulators need to be aware of the duplicitous nature of the insurance product being offered.

Good luck!


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Timmy Chou


I am a experienced Mediator and a partner in a management consulting firm. As a mediator I work as a third-party neutral and specialize in partnership/shareholder disputes, management/labor issues, company culture difficulties, and family-owned business problems. I can help describe why alternative dispute resolution may be a good choice for you. As an experienced management consultant I may be able to offer creative ideas to help resolve your organizational and business problems and disputes. "If you say conflict, I say opportunity".

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