Insurance valuation of FF points

[Decimac]

Hi FFs, I had to cancel a recent FF points flight from Brussels to Perth, due to a family berevement and book a last minute ticket to return home. It was a one way, not a return, that was canx. Insurance has agreed to cover the difference, but have asked me what the $ value was for the points. I have already provided a Choice article showing points value, but they indicated they need something from the airline.
Has any one experienced this before? What avenues are there to get this information?

 

[theblank]

Some insurance companies state what they value points as.
I have heard one insurance company accepted the value according to what it cost for the punter to buy the points.

 

[SponsorSFC]

I would try and get them to use the airlines cash price for a last minute one way ticket (can't hurt).

 

[MEL_Traveller]

Hi FFs, I had to cancel a recent FF points flight from Brussels to Perth, due to a family berevement and book a last minute ticket to return home. It was a one way, not a return, that was canx. Insurance has agreed to cover the difference, but have asked me what the $ value was for the points. I have already provided a Choice article showing points value, but they indicated they need something from the airline.
Has any one experienced this before? What avenues are there to get this information?

Most insurance companies that cover points will calculate the value as the cost of the airfare divided by the points used. So they will usually have a variable value depending on the class of service booked.

I'm sure that part of the reason insurance companies are so generous is because many airlines will only charge a small fee for the cancellation of award flights, refunding the balance. If this was Qantas for example you might have 'lost' as little as 6000 points for the cancellation. Other programs might refund all the points less a $200 chanrge (or whatever).

You might need to provide the insurance company with details such as a print out of the points paid, versus those refunded. And if you can, the cost of an equivalent airfare. You will need to show your actual loss.

If you wish to provide the details here it might be easier to work out. But it will also depend on the wording in your insraunce policy as to how they calculate it.

 

[Decimac]

Actually I think I didnt explain very well. I canceled the points flight and received most back, but had to purchase an urgent return, which the only flight I could get out was $4800. So I am looking to redeem back what $ I can of this flight. The cancelled points were for a business class as well. I hope this is clearer. Thanks guys

 

[MEL_Traveller]

Actually I think I didnt explain very well. I canceled the points flight and received most back, but had to purchase an urgent return, which the only flight I could get out was $4800. So I am looking to redeem back what $ I can of this flight. The cancelled points were for a business class as well. I hope this is clearer. Thanks guys

That's kind of what I figured. So the insurance company is paying you the $4800?

As for the points, whatever the cancellation cost you - if Qantas it would have been 6000 points - you could look at it in a couple ways depending how the insurance company values FF points. Either (a) have evidence of a similarly priced airfare, take that airfare and divide by the number of total points for the ticket before cancellation, and multiply by the points not refunded. For example if the airfare would be $5000 one way, and you paid 126000 points, each point would be worth 5000/126000 = 0.0396 x 6000 point cancellation fee = $238. Substitute actual numbers for your example. Or (b) go to the QF top up points page and give the figure for buying 6000 points, which is $215. Or submit both.

You could find the one way airfare by doing a one-way search on the airline you were shcedueld to fly, using the base fare only, not including taxes and fees as those would have been refunded to you already.

 

[serfty]

but they indicated they need something from the airline.

Has any one experienced this before? What avenues are there to get this information?

I'd point them to how much qantas charge for 6k "top up points".

That's documeted publicly.

 

[Mr H]

If I were the insurance company, I'd be saying that the value of the refunded points needed to be offset against the cost of the emergency flight.

 

[MEL_Traveller]

If I were the insurance company, I'd be saying that the value of the refunded points needed to be offset against the cost of the emergency flight.

Insurance is designed to put you back into a position of no net loss (and no 'gain' either). While the ticket home is one thing, the points are an additional loss. It's not unreasonable to seek compensation for that, although I could understand many folk would just be happy with the $4800 and would probably wear the $250 for the loss of points. But there's no need to do so.