How to cancel your AIG travel insurance in new zealand and understand your refund rights

Why you might cancel your AIG policy and what you need to know

AIG (American International Group) operates as a major general insurance provider in New Zealand, offering travel cover through direct channels and branded partners such as Westpac's Travel Activate. Your circumstances change quickly-your trip falls through, you discover better cover elsewhere, or an emergency forces you to stay home. When that happens, you need a clear route to cancel your policy and recover your money if you are eligible. Yafee has helped thousands of New Zealand consumers navigate insurance cancellations with confidence. This guide walks you through every step so you stay in control and understand exactly where you stand under New Zealand law.

What AIG travel insurance covers

AIG NZ specialises in retail general insurance, including travel cover, commercial liability and other lines. The company holds membership with the Insurance Council of New Zealand, which means it operates under the Fair Insurance Code-a set of rules designed to protect you when you buy, hold and cancel a policy. Most New Zealand consumers encounter AIG through short-term, per-trip travel insurance policies purchased online, via brokers, or through Westpac's Travel Activate platform. These are not annual policies; they cover a specific journey or holiday period.

Common reasons for cancelling AIG travel insurance

You may cancel your AIG policy for legitimate reasons: your trip was postponed or cancelled; you booked alternative cover with better terms; medical or family emergencies prevented travel; or the policy did not match your actual itinerary and destinations. Understanding your right to cancel and when you stand the strongest chance of recovering money puts you in a more powerful position from the start of any conversation with AIG.

Your consumer rights under new zealand law

New Zealand consumer law gives you specific protections when you buy, hold and cancel an insurance policy; knowing these rights shifts the power balance in your favour.

Insurance code of practice and cooling-off rules

AIG NZ is bound by the Fair Insurance Code, administered by the Insurance Council of New Zealand. However, general insurance products (including travel insurance) in New Zealand do not carry a mandatory 14-day cooling-off period as some other products do. This means your refund eligibility depends on the specific policy terms, how long you have held the policy, and your reason for cancelling. Your policy document will spell out your exact position under the cancellation clause. Yafee recommends you locate and read this document before contacting AIG.

Your legal position: You have a statutory right to cancel any insurance contract, but the amount you recover depends on the insurer's terms and whether you have already used any benefit or made a claim. If AIG refuses to honour a cancellation or refund you believe you are legally owed, you can escalate the dispute for free.

Financial services complaints authority and escalation

If AIG refuses to cancel your policy or denies a refund you believe you are entitled to, you have a free external dispute resolution pathway. The Financial Services Complaints Authority (FSCA) handles insurance complaints in New Zealand at no cost to you. AIG must acknowledge your complaint within 5 business days and provide a full response within 10 business days. If the company does not resolve the matter within two months, you can escalate to the FSCA, which has the power to order refunds and compensation. Keep records of every email, call, letter and written confirmation-these are your evidence if escalation becomes necessary.

Step-by-step cancellation process

Cancellation is straightforward when you follow the right channel and document everything as you progress through each stage.

Step 1: gather your policy details

1. Locate your policy number and purchase confirmation email.
   • Search your email inbox for "AIG" or "Travel Activate" to find your policy documents.
   • Write down your policy number, purchase date and the amount paid.
   • Check whether you have a PDF copy of the full policy terms and conditions.
2. Identify where you purchased the policy.
   • Check whether you bought directly from AIG, through Travel Activate, via a travel broker, or through another partner channel.
   • This determines your first point of contact for cancellation.
3. Note your cancellation reason.
   • Write a brief description: "Trip cancelled," "Found better cover," "Medical emergency," or similar.
   • This helps AIG process your request faster and may influence your refund eligibility.

Step 2: contact AIG or your policy partner directly

1. If you purchased directly from AIG, contact the company using the formal postal address below (preferred for cancellation records).
   • Address: PO Box 1745, Auckland, 1140, New Zealand.
   • Include your policy number, full name, contact number and the effective cancellation date you request.
   • State your reason for cancellation clearly.
2. If you purchased through Travel Activate or another partner, contact that organisation first.
   • Your purchase confirmation email will contain the contact details you need.
   • Partners often handle cancellations faster than direct AIG channels.
3. Send your cancellation request in writing (email or post).
   • Written requests create a documented record and timestamp.
   • Phone calls leave no evidence if disputes arise later.

Step 3: include all essential information in your cancellation letter

1. Draft your cancellation email or letter to include:
   • Your full name and policy number at the top.
   • Your contact email and phone number.
   • A clear statement: "I wish to cancel my AIG travel insurance policy, effective [date]."
   • Your reason for cancellation (optional but helpful).
   • Request for written confirmation of cancellation and any refund due.
   • Ask AIG to provide the cancellation date, final premium paid, any amount to be refunded and the refund timeline.
2. Keep a copy of every email or letter you send.
   • Screenshot confirmation of delivery if sending by email.
   • Obtain a postage receipt if sending by mail to PO Box 1745.

Step 4: wait for AIG's response and refund decision

1. AIG must acknowledge receipt of your cancellation request within 5 business days.
   • If you do not hear back, follow up with a second email marked "Follow-up - Cancellation Request."
2. AIG will then assess your refund eligibility based on the policy terms.
   • If you have not yet travelled and made no claim, you typically recover most or all of your premium (minus any non-refundable fees or taxes).
   • If you have already travelled or made a claim, your refund will be reduced or eliminated.
3. AIG will issue written confirmation of the cancellation and refund amount within 10 business days.
   • Check this letter carefully against your original premium and any fees.
   • If the refund seems incorrect, contact AIG immediately to query the calculation.

Step 5: receive your refund

1. AIG will process your refund to your original payment method (credit card, debit card or bank account).
   • Refunds typically appear within 10 to 15 business days of AIG's confirmation letter.
   • Contact your bank if the money does not arrive within this timeframe.
2. Keep the cancellation confirmation letter and refund receipt for your records.
   • You may need these if you escalate a dispute to the FSCA.

Refund timing and what to expect

New Zealand consumer law requires insurance providers to process refunds promptly once a cancellation is confirmed. AIG typically issues cancellation confirmation within 10 business days of receiving your request. Your refund then reaches your bank account within a further 10 to 15 business days, depending on your financial institution. In total, you should see money returned within three to four weeks of your initial cancellation email or letter.

The amount you recover depends on the policy terms, how long you have held the policy and whether you have used any benefit. If you cancel before travelling and have made no claim, you will usually receive a full refund minus any non-refundable fees (such as credit card or administration charges). If you have already travelled or filed a claim, AIG will calculate a proportional refund based on the number of days the policy was active.

Pricing, fees and refund deductions

AIG travel insurance premiums vary widely based on your age, destination, trip length and the level of cover you select. Understanding common fees helps you anticipate what refund amount to expect.

Yafee recommends you ask AIG to itemise these charges in its cancellation letter so you can verify the refund calculation. If AIG deducts fees you believe are not legitimate, dispute the amount before escalating to the FSCA.

What to do after your cancellation is confirmed

Once AIG confirms your cancellation, several steps protect you and ensure a smooth close to the process. You are not powerless even after the cancellation letter arrives; verification and follow-up matter greatly.

Verify your refund receipt

1. Check your bank account or credit card statement within 15 business days.
   • Search for any transaction labelled "AIG," "Travel Activate," or the insurer's partner name.
   • Confirm the refund amount matches the cancellation letter.
2. If the refund does not arrive on time, contact AIG to obtain a refund tracking reference.
   • Request the transaction ID or bank reference number.
   • Provide this to your own bank if the money is still missing.

Archive your documentation

1. Create a digital folder containing:
   • Your original policy purchase confirmation.
   • Your cancellation email or letter (and a copy of any posted version with postage receipt).
   • AIG's acknowledgement email or receipt of your cancellation request.
   • The final cancellation confirmation letter with the refund amount itemised.
   • Bank or credit card statement showing the refund receipt.
2. Keep these files for at least two years in case a dispute arises later.

Escalate to the FSCA only if needed

1. If AIG refuses to cancel your policy or you disagree with the refund amount, lodge a complaint with the Financial Services Complaints Authority (FSCA) at no cost.
   • Visit fsca.org.nz or call 0800 644 274 to obtain the complaint form.
   • Provide your complete documentation package (all emails, letters and cancellation confirmation).
   • The FSCA will investigate and make a binding decision within eight weeks.

Common mistakes to avoid when cancelling

Most cancellation delays and refund disputes stem from avoidable errors. You have more control over this process than you might think; the mistakes below are easily prevented.

Mistake 1: cancelling by phone only

Verbal cancellations leave no record. If AIG disputes your request later, you have no evidence. Always send a written cancellation email or letter to AIG's postal address. Keep a copy and ask for written confirmation in return.

Mistake 2: failing to quote your policy number

AIG handles thousands of policies. Without your policy number, your cancellation request gets delayed or lost. Include it in every communication-subject line, opening paragraph and closing. This alone cuts processing time dramatically.

Mistake 3: not reading the policy cancellation clause

Your policy document outlines exactly what you are and are not entitled to recover. If you cancel before the policy period begins, you may recover the full premium. If you cancel mid-trip, the refund drops sharply. Read the clause first so you understand your realistic position before contacting AIG.

Mistake 4: accepting a verbal refund promise

If an AIG representative tells you over the phone that you will receive a certain refund, ask them to confirm it in writing via email. Verbal assurances are not binding if the final cancellation letter contradicts them. Written confirmation is your evidence if you need to escalate a dispute.

Mistake 5: not following up after 10 business days

AIG is required to respond within 10 business days, but delays happen. If you do not hear back by day 12, send a follow-up email. Early follow-up prevents cases from slipping through cracks and speeds up your refund.

Comparison: when to cancel versus when to keep your policy

Not every circumstance warrants cancellation. The table below helps you weigh your options against the refund you will receive.

Yafee advises you to calculate the net refund (gross refund minus non-refundable fees) before deciding whether to cancel. If you will recover less than $20 after deductions, the administrative burden may not be worth it. Conversely, if you will recover $150 or more, cancellation is clearly justified.

Your formal cancellation contact address

Use the postal address below for all formal cancellation correspondence. This ensures your request is logged officially and creates a documented record for the FSCA if you later need to escalate a dispute.

AIG New Zealand Ltd
PO Box 1745
Auckland, 1140
New Zealand

Include your policy number, full name and cancellation date request in every letter or email. Keep a copy and obtain a postage receipt if sending by mail. Yafee has helped thousands of consumers cancel their travel insurance with confidence by following this process and documenting every step. You now have the legal framework, practical steps and escalation route you need to cancel your AIG policy and recover your refund efficiently. If AIG fails to honour your cancellation or disputes your refund eligibility, the FSCA provides free dispute resolution with binding authority. Start today by gathering your policy documents and drafting your cancellation letter to the postal address above.