My wife and I bought return tickets to Europe and travel insurance from STA Travel NZ late last year but now the flights have been cancelled due to COVID19. I see advice from Consumer NZ states travel insurance companies should be providing refunds as since the travel is no longer going ahead due to circumstances beyond the passengers control there will be no risk to the travel insurance policy as there will be no claims.
STA Travel have recently emailed me saying they can cancel our policy and provide a voucher as compensation, obviously I would prefer a refund as my wife and I will not be travelling to Europe within the next 12 months and a potential trip to Australia would not incur the same insurance policy cost as a trip to Europe meaning the voucher would either expire or be wasted.
I have recently had a lot of trouble with STA Travel saying they were going to hold the cash refund from the airline and only give me a 12 month voucher for STA, they have since backtracked on this (public backlash plus the act is was pretty much illegal), but I am not sure of my rights when it comes to the insurance, I get the feeling if I am entitled to a voucher I should be entitled to a refund also?
I have tried a charge back from the disputes team at the bank, but STA replied saying the policy is non refundable which the bank seem to agree with - but my flights were also non refundable but I am still entitled to my cash back from the airline - so does the same apply here?
Any advice on weather a cash refund is my right in this situation or if STA are within their rights to only supply a voucher which will more than likely go to waste..