Chase Cards: Trip Cancellation Won’t Cover Airline, Tour Company Bankruptcy

Chase Cards: Trip Cancellation Won't Cover Airline, Tour Company Bankruptcy

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Chase Credit Cards–the Chase Sapphire cards etc. that offer trip cancellation insurance–will no longer include the bankruptcy of the airline, tour operator or travel supplier as a covered loss, per DoC. Apparently this change occurred in August 2019.

I've had my Chase Sapphire Reserve for a few years (although am likely to cancel it when it comes up for renewal, due to the Chase Sapphire Reserve Annual Fee Increase to $550) and the original trip cancellation benefits definitely included travel supplier financial insolvency as a covered loss:

Chase Sapphire Reserve: Trip Cancellation Used to Cover Airline or Tour Company Bankruptcy

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But the current Chase Sapphire Reserve Benefits Guide, as well as the ones available on the Chase Mobile App, have moved financial insolvency of the travel supplier into the category of items, such as trips canceled or changed by a travel supplier (unless the result of severe weather or an organized strike affecting public transportation), pre-existing conditions, etc. that are NOT covered by the cards' trip cancellation insurance.

Chase Sapphire Reserve: Trip Cancellation Does NOT Cover Airline or Tour Company Bankruptcy

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There have been a number of travel company bankruptcies over the past year, from Thomas Cook to airlines such as Jet Airways, XL Airways, Germania, Avianca Brasil, to name just a few, not to mention various smaller tour operators and destination management companies.

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Is a Credit Card Chargeback a Way to Get Reimbursed for Bankrupt Suppliers?

Fortunately, at least for Visa cards (which is what Chase issues), Visa chargebacks for 13.1, Services Not Provided or Merchandise Not Received, are permitted up to 120 days from the last date the cardholder expected to receive the merchandise or service, or up to 120 days from the date the cardholder was told the merchandise or service wouldn't be provided, as long as the resulting date isn't more than 540 days from the original transaction date.

Still, no one really wants to have to file insurance claims or chargebacks, so it's a good idea to make any significant prepaid travel bookings directly with major airlines, and if you use a travel advisor, ensure that the hotel, cruise and tour reservations they make on your behalf are directly with reputable hotels, cruises and tour companies (all TravelSort's preferred partner and Virtuoso reservations are made directly with the hotels and cruise lines). It also reinforces our decision at TravelSort to not use destination management companies (DMCs) unless the client requests it, because these are often on shakier financial footing than the more robust luxury hotel and cruise lines we deal with.

Have you been affected by this Chase change in trip cancellation coverage?

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