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According to a JetBlue class action lawsuit, the airline deceptively offers travel insurance on their website while accepting kickbacks from the provider.
The JetBlue class action argues that the airline encourages its customers to purchase travel insurance through their website when purchasing tickets.
Travel insurance helps to cover any additional costs or lost payments that a traveler may incur on their trips. For example, if a customer has to change their flight or cancel a trip, travel insurance would cover the fees associated with these changes.
Although there are valid travel insurance offers, JetBlue allegedly conceals the fact that it accepts a kickback as a part of each travel insurance purchase. The kickback brokerage fee is allegedly included in the price of travel insurance and is paid to JetBlue by Allianz when the airline directs its consumers to the insurance company.
“JetBlue does not disclose, however, that despite lacking a license to broker insurance policies, it has a financial interest in the travel insurance and receives an illegal kickback from the insurer in exchange for brokering the insurance sale,” the JetBlue class action lawsuit claims.
Plaintiff Randy O’Kane reportedly purchased airline tickets on JetBlue’s website in October 2016. During her purchase, she allegedly accepted the airline’s offer to purchase travel insurance through Allianz for $84. She reportedly had a similar experience in February 2015 when she purchased travel insurance for $55.92 through Allianz based on an offer from JetBlue.
O’Kane argues that part of her purchases went towards compensating JetBlue in the form of illegal commission kickbacks. She also argues that JetBlue charges far more for travel insurance than comparable, “if not superior,” plans. This additional price is reportedly “attributable to the illegal commissions that JetBlue receives from its insurers” despite consumers having no idea.
“At no point did JetBlue inform Plaintiff that a portion of the trip insurance billed to her included an illegal kickback to JetBlue,” the JetBlue class action lawsuit claims.
The JetBlue class action argues that O’Kane and other consumers would not have purchased the travel insurance or would have paid less for the coverage if they knew that the airline received a kickback for the purchase.
In her JetBlue class action lawsuit, O’Kane seeks to represent a Class of consumers who purchased travel insurance on JetBlue’s website. She also seeks to represent a Class of the same consumers who made their purchase in New York.
The Jet Blue class action seeks declaratory relief, compensatory damages, exemplary damages, statutory damages, restitution, disgorgement, court costs, and attorneys’ fees.
Did you purchase travel insurance through JetBlue’s website? Share your experiences in the comment section below!
O’Kane and the proposed Class are represented by Melissa R. Emert of Stull Stull & Brody, Rosemary M. Rivas of Levi & Korsinsky LLP, Marc L. Godino of Glancy Prongay & Murray, Kevin Landau of Taus Cebulash & Landau LLP, and Daniel C. Hedlund of Gustafson Gluek PLLC.
The JetBlue Travel Insurance Class Action Lawsuit is O’Kane v. JetBlue Airways Corporation, Case No. 7:19-cv-09662, in the U.S. District Court for the Southern District of New York.
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8 thoughts onJetBlue Class Action Alleges Insurance Kickback Scheme
I purchased three tickets during this time I have proof do I qualify
Please add me
For several consecutive years, while booking online and paying for Jet Blue BOS to AUA and AUA to BOS flights for myself, my son, and another, I was prompted to purchase travel protection insurance from Allianz and clicked on such option to purchase such policy(ies) without notification of or knowledge that Jet Blue would receive a commission (kickback) for such purchase from Allianz.
Please add me
I am eligible to be a member of the JetBlue Class Action. I purchased that specific Allianz insurance for a flight in November 2016. Thank you.
I’m definitely a member of the Class. Contact me. See below.
We purchased a flight with JetBlue and travel insurance
I purchased a round trip ticket (Boston to Houston) to visit my terminally ill brother. I was to stay there three weeks. I purchased insurance thinking I could change my return flight any time depending on circumstances and it wouldn’t cost me anything. While I was there (almost three weeks) my brother passed away and I was trying to stay a few extra days to attend his funeral. I called Allianz and they told me this huge process I have to go through and they weren’t sure what I would receive as a refund with the the death certificate I submit. Basically they said book a one-way Houston to Boston for three days out, then when you get death certificate ( in a week or two) submit that and the cost of new one way, and it will be reviewed by a team. This could take months. One way tickets (Houston to Boston) three days away cost more than my round trip fair and it was very questionable what insurance would refund (would it be the total new one way fare) or half of the original round trip fare. Allianz had no idea. Due to the high cost this one way would cost me and questionable what would be reimbursed, if anything, I was leary. So I ended up coming back on my scheduled flight and missing my brother’s funeral. I will never purchase insurance again for something like this since it really doesn’t work the way its advertised.