The following is a case study published in OFS Annual report:
Armani’s flight from London to Edinburgh was cancelled by the airlines due to “System Disruption”. Her flight was rescheduled to the next day; however, the replacement flight was also cancelled for the same reason.
Armani decided to rent a car to proceed with her travel plans. She submitted claims for the car rental, additional accommodation bookings and other miscellaneous expenses, but her takaful operator repudiated her claims.
OUR FINDINGS
Under the Travel Inconveniences Benefit, no flight cancellation and car rental benefits were listed. Any consequential losses are excluded from the policy. “System disruption” is not one of the covered perils under the Travel Delay benefit.
OUTCOME
Based on the above findings, the case manager upheld the takaful operator’s decision, and Armani accepted the Recommendation.