Here’s some advice on the Mexicana Airlines Bankruptcy & Travel Insurance. I hope you find it useful.
It’s now being reported in the LA Times that Mexicana Airlines has suspended all flights.
Here are my Tips:
- Do not assume all Trip Cancellation Travel Insurance plans work the same way. They do not and it’s a big mistake to assume they do.
- Some Trip Cancellation Travel Insurance plans exclude non-US based airlines.
- You need to read your Trip Cancellation Travel Insurance plan’s Certificate of Coverage carefully to find exactly how they cover Financial Default. Sometimes going into Bankruptcy is covered, but most plans I know wording requires the travel supplier to completely cease operations.
Here’s how some plans define it:
“Supplier Financial Default” is a complete suspension of operations due to financial circumstances whether or not a bankruptcy petition is filed. In other words, just the act of filing for bankruptcy or becoming bankrupt doesn’t necessarily qualify as a valid Financial Default claim. The travel supplier has to completely cease operations.
- Depending on the documentation your policy requires, you may have to depart on your trip to end up being delayed or get a cancelled flight in order for your travel insurance to work.
I know this short list doesn’t cover all the possible scenarios, but this should give you a place to start. I also suggest you keep a phone log of the people’s names & what they told you when you call your travel agent and trip insurance company. That could come in handy later.
Here’s some more information. While this page only covers the 5 companies I sell, you will get detailed information on the subject of “Supplier Financial Default”: