Which travel insurance policies covers miles and points bookings?

KrisFlyer Spontaneous Escapes recently made their return after a two-year hiatus, with 30% off last-minute Singapore Airlines awards for travel in April and May 2022. 

Spontaneous Escapes

Full Analysis

Spontaneous Escapes are a great way of stretching your miles, but there’s one important catch: they’re strictly non-changeable and non-refundable. Singapore Airlines’ complimentary rebooking policy does not apply to Spontaneous Escapes awards, so once you book, you’re committing to fly. 

So what happens if you get hit by an untimely COVID infection or a health-risk notice that prevents you from taking the trip?

Normally, you’d turn to travel insurance for exigencies like this, but the vast majority of travel insurance policies do not cover bookings made with airline miles or hotel points. For example, here’s what AXA’s policy wording says: 

In addition to the General Exclusions (page 20) and “Exclusions applicable to all benefits under this Endorsement”, We will not pay any claims in respect of:
…
(b) loss of vouchers, reward points or holiday points that You have used, in part or full, to pay for Your trip;

This normally isn’t an issue, because airline and hotel awards are usually cancellable. But there are certain scenarios, like with Spontaneous Escapes, where you may not be able to get your miles or points back.

To guard against this, it’s highly advisable that you purchase a travel insurance policy covering frequent flyer miles/points, and that’s what we’ll look at in this post. 

Which travel insurance policies cover miles and points?

Here’s a few general pointers to note before we look at individual policies. 

First, it’s important to state that compensation can only be claimed if your miles/points are not recoverable. If it’s possible to pay a cancellation fee and get your miles back (e.g. regular Saver or Advantage awards on KrisFlyer), you cannot make a claim under your travel insurance policy. 

Second, your trip must have been cancelled/disrupted for a covered reason. Changing your mind is not valid grounds for a claim, unless you purchase Singlife’s travel insurance policy and make a claim under the “cancel for any reason” clause (which pays you 50% of the expenses incurred, capped at S$5,000 and once per period of insurance). 

Third, the general approach that insurers take when valuing miles and points is to look at the retail value of the flight ticket or hotel booking. That actually works out in your favour- I’d rather be reimbursed for the cash value of a Business Class ticket than at 1-2 cents per mile! 

Fourth, coverage for COVID-19 related trip cancellation may be lower than general trip cancellation. For example, Singlife’s policy offers up to S$20,000 of coverage for trip cancellation, but if COVID-19 is the reason, the coverage drops to S$2,000. 

I’ve found five policies that cover miles and points bookings, but three of them offer so little coverage that they’re practically irrelevant. For all intents and purposes, you’ll want to go with either Singlife or Chubb’s plans (though the latter doesn’t cover miles and points in the event of trip cancellation due to COVID-19). 

Singlife 

Policy Name	Travel Insurance
Trip Cancellation Coverage	Lite: S$5,000 Plus: S$15,000 Prestige: S$20,000
Trip Cancellation Coverage (COVID-19)	Lite: S$500 Plus: S$1,500 Prestige: S$2,000
Policy Wording	Link
Relevant Section	If You purchase airline ticket or Entertainment Cost or book accommodation using Frequent Flyer Points or similar reward points in full and the airline ticket, Entertainment Cost or booked accommodation is subsequently cancelled due to the events for which You are covered under this policy, We will pay You the retail price for that ticket or booked accommodation at the time it was issued, provided the loss of such points  cannot be recovered from any source.

Special note about Singlife: Since trip cancellation coverage for COVID-19 is only 10% of general trip cancellation, you may prefer to invoke the “cancel for any reason” clause (available on the Plus and Prestige plans) which allows you to recoup 50% of the non-recoverable expenses, capped at S$5,000. 

Chubb Insurance

Policy Name	My VoyageGuard (referred to as My Travel Insurance in policy document)
Frequent Flyer Miles Coverage	Essential: S$5,000 Standard: S$10,000 Superior: S$20,000
Frequent Flyer Miles Coverage (COVID-19)	Does not apply if trip is cancelled due to COVID-19
Policy Wording	Link
Relevant Section	If, during the Period of Insurance, the Insured Person purchase an airline ticket (or other travel and/or accommodation expense) using frequent flyer points or similar reward points and the airline ticket (or other travel and/or accommodation expense) is subsequently cancelled as a result of any Specified Cause (as defined in Section 15) and the loss of such points cannot be recovered from any other source, the Company will indemnify the Insured Person the retail price for that ticket (or other travel and/ or accommodation expense) at the time it was issued up to the Benefit amount specified in the Certificate of Insurance subject to the terms and conditions of this Policy, provided always that this coverage is effective only if this Policy is purchased before the Insured Person becomes aware of any circumstances which could lead to the disruption of his Journey.

ETIQA

Policy Name	Travel Infinite
Frequent Flyer Miles Coverage	Classic: S$100 Deluxe: S$500 Suite: S$750
Frequent Flyer Miles Coverage (COVID-19)	Does not apply if trip is cancelled due to COVID-19
Policy Wording	Link
Relevant Section	If You purchase an airline ticket (or other travel and/or accommodation expense) using frequent flyer points or similar reward points and the airline ticket (or other travel and/or accommodation expense) is subsequently cancelled as a result of any Specified Cause (as defined in Section 22) and the loss of such points cannot be recovered from any other source, We will indemnify You the retail price for that ticket (or other travel and/or accommodation expense) at the time it was issued up to the limit stated in the Schedule. This coverage is effective only if this Policy is purchased before You become aware of any circumstances which could lead to the disruption of Your Journey.

AIG

Policy Name	Travel Guard Direct
Frequent Flyer Miles Coverage	Basic: N/A Standard: N/A Enhanced: S$500 Supreme: S$750
Frequent Flyer Miles Coverage (COVID-19)	Unclear if covered
Covers COVID-19?	Yes
Policy Wording	Link
Relevant Section	We will reimburse you up to the Sum Insured limit shown in the schedule of benefits under Section P for the plan you selected for: 1. any non-refundable portion of your entertainment ticket to be used during a trip which you are not able to use; or 2. any non-refundable frequent flyer points that were used for redemption of benefits which you are not able to use during your trip including but not limited to redeemed flights and hotel accommodation, due to the occurrence of the following events that prevent you from using your entertainment ticket or the benefits redeemed using your frequent flyer points: 1. serious illness or injury suffered by you resulting in hospital confinement; 2. the unexpected death or injury or illness of your relative or travelling companion; 3. a covered listed event under Section A3(a); or 4. quarantine in a hotel or hospital upon medical advice.

Tokio Marine

Policy Name	TM Xplora
Frequent Flyer Miles Coverage	Classic: S$100 Premier: S$300
Frequent Flyer Miles Coverage (COVID-19)	No coverage
Policy Wording	Link
Relevant Section	We will pay You up to the limit specified in Section 37 of the Selected Plan for the cost of any non- refundable portion of Your Entertainment Ticket to be used during a Trip which You have purchased in advance Or any non-refundable Frequent Flyer Points that were used for redemption of benefits, which you are not able use during your Trip and cannot be recovered from any other source due to any of the following occurring:- (i) Death or Serious Injury or Serious Sickness or compulsory quarantine of You, Your Relative or Travel Companion, resulting in a Hospital Confinement; (ii) Unexpected outbreak of strike, riot or civil commotion, natural disaster, or events arising out of circumstances beyond Your control preventing travel at Your planned destination. (iii) Serious damage to Your residence in Singapore from fire, flood or similar natural disaster within 7 days before the departure date and Your presence is required on the premises on the departure date. (iv) Witness summons or jury service which were not made known to You prior to the purchase of this Policy. (v) Outbreak of Infectious Disease at Your planned destination. (vi) Closure of airspace or airport closure which prevents You from commencing or continuing Your scheduled Trip.

Conclusion

If you’re planning to book a KrisFlyer Spontaneous Escape award, you’ll definitely want to purchase travel insurance that provides coverage for miles and points. Your miles are as good as money, but not every travel insurer sees it the same way!

Award tickets aside, such policies can also be useful when making award night bookings at hotels with strict cancellation policies. For example, it’s not uncommon for resorts in the Maldives to impose three week cancellation policies on points bookings, and should you cancel within this window, your points will be forfeited. 

Do you know of any other travel insurance policies with miles and points coverage?