Mumbai: Last week cash-starved Jet Airways Ltd suspended its operations after flying its last flight from Amritsar to Mumbai on Wednesday night. If you had booked a Jet flight which got cancelled will you get an insurance cover for it? Also what happens to you Jet Privilege Mile and your Jet co-branded credit cards? Here is what you can expect:
Your travel insurance
Generally travel insurance policies provided by the airlines or third-party websites along with your booking cover flight cancellation. But here they may not compensate you for the same.
“Your travel insurance may not help because the insurer cannot cover the charges for the airlines’ debt default," said Kapil Mehta, founder, SecureNow.in. Considering that the operations of the flights were shut down due to lack for funds, the insurers will not bear the cost.
“This is not covered. Typically what happens is that any flight that is cancelled by the airline it is assumed from the terms and conditions that it is the liability of the airline to repay to the customer. Usually personal contingency such as medical emergency within the family is covered. Also if the flight is cancelled due to weather issue, you get covered for it. But apart from these two reasons, typically wherever the airline has to repay it is not covered because logically the customer will get refund from the airline. It is a contractual liability meaning someone who is charging you and will do it as a contract and if that is not delivered then the service is not delivered. Contractual liabilities are not covered by insurers," said Mahavir Chopra, director of health, life and strategic initiatives, Coverfox.com.
Your Jet Privilege Miles
Jet Privilege Private Ltd is the airlines’ frequent flyer programme which rewarded their flyers with JPMiles or reward points. Jet Privilege, which is an independent entity and a part of the Etihad Aviation Group, said in a statement that your JPMiles will continue to exist.
“We would like to assure our members that the value of their JPMiles are secure and remain intact. With our air reward offering, ‘select flights’, members have the choice to redeem their JPMiles to fly free across more airlines, any destination, any flight and any seat in India and globally, starting with the same JPMiles requirement as before which was applicable on Jet Airways and its partner airlines," said Jet Privilege in a statement. Jet Privilege’s website currently allows you to use your JPMiles to book flights of other airlines: domestic and international across select airlines. Among the domestic carriers, Indigo, GoAir, Air India, Air Asia and Spice Jet flights are available for booking. Air India flights are also available on international routes among other international carriers.
Select banks offered co-branded credit card of Jet Airways. “In case you own a co-branded card with Jet Airways, your card issuer may give you an option of transferring co-branded card to another brand," said Ashish K Nainan, research analyst, Care Ratings, a credit ratings agency. However, it will depend on the card issuing company. Banks such as HDFC Bank Ltd, ICICI Bank Ltd and IndusInd Bank Ltd offer Jet Airways co-branded credit cards. “Your co-branded cards will not face an issue. It will continue to function as a normal credit card and the points you accumulate in the form of JPMiles can be redeemed for flights of other carriers and online shopping where these miles can be redeemed," said a credit card issuer. Your credit card will continue to remain active as it is offered by the card issuing company and not by Jet Airways. Hence, you will be able to use it.