Some dodgy stuff going on here...
A work colleague is booked to fly with them in 2 weeks. (Despite me strongly discouraging him, and warning him that he should have full travel insurance if he does - explaining the poor service reviews and high likelihood of failure).
He booked in November through flight centre, and took out the full insurance, which at the time covered airlines (including Air Australia/Strategic - as it was prior to the exclusion) for insolvency (as stated on the policy docs given to him).
Now here's the really dodgy bit:
1) The flight centre agent (also the principal agent) strongly encouraged him to pay cash, suggesting the deal was only available to 'cash buyers'.
2) Despite purchasing and signing in November, the agent failed to lodge the insurance policy until the first week of January - and failed to tell my work colleague that the policy had changed since his purchase.
3) The agent said nothing can be done and no refund is possible, and that the only thing he can do is organise a formal meeting with the principal agent (the one and the same agent that sold the tickets for cash and is telling him no refund over the phone).
I've advised him to contact fair trading for advice, and told him to know his rights prior to going in for the meeting. His holiday, like many other AA pax, is down the drain, and he's left in a 'black hole'. At least he's not stuck overseas.