Who Is The Travel Insurance Claim Paid To?

I’m buying the plane ticket for a friend. Will the insurance pay me, the purchaser of the ticket, if they are forced to cancel their trip? The trip insurance plans I see say they will pay the person whose name is on the ticket, NOT the one who paid for it (that’s me). I want to protect myself, NOT my friend since they don’t suffer any financial loss. Roger

Hi Roger,

Thanks for writing.

The trip insurance company will pay the insured because the insurance is on them and is insuring the cost paid for the airline tickets in their name.

Don’t worry about losing your money because here’s what happens in real life (this is a common situation): The insured, your friend, gives you the money they receive in the claim. Why would they do that?

• You make it crystal clear that since you’re paying for the ticket, they will have to give you any money they receive in a trip cancellation or trip interruption claim
• If they’re really your friend they’ll tell you something like “Of course I’d give the money back to you”
• Here’s a tip: if your friend wants to negotiate this point, I suggest you work out the solution before you buy their ticket & trip insurance

The good news is that in every situation like yours that I’ve seen, the insured persons feels a moral obligation to give their friend (who’s paying for their trip) the money from the claim. I’ve never known about anyone who thinks they should keep the money.

I hope this makes sense.

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