Bonus miles should be covered by cancellation insurance as well.

Anyone who paid for a canceled flight with bonus miles that are now irretrievably lost is entitled to compensation. This results from a judgment of the Federal Court of Justice (BGH), which was published on Monday.

In the present case, the plaintiff had booked flights to and from the United States, which he paid for with bonus miles from an airline program. He canceled the trip because of illness. According to the airline’s conditions, the bonus miles used will then not be credited back.

The family travel cancellation insurance taken out by the plaintiff’s wife provided that, among other things, cancellation costs in the event of non-commencement of the trip are insured for up to 80 percent of the travel price. The district court of Wuppertal recently ruled against the passenger. The court argued that there were no withdrawal costs, because bonus miles are “not tradable in the sense that there is a market for them where they can be bought and sold”. According to the regional court, a “non-monetary consideration for a flight” cannot be “tradable via a detour via a cancellation of the trip”.

BGH: Bonus miles cannot be traded, but they have a value

The BGH sees it differently: By taking out travel cancellation insurance, a policyholder expects protection against such costs that arise because the insured person is unable to take a booked trip due to illness, according to the judgment. This also includes the bonus miles, which have value despite their lack of tradability because the plaintiff can use them as consideration for goods or services offered as part of the bonus program. Therefore, the plaintiff is entitled to compensation

So the man is entitled to compensation. The matter is referred back to the Court of Appeal for a new hearing and decision, including the costs of the appeal proceedings. The BHH set the amount in dispute for the appeal proceedings at EUR 3,000.