Norwegian Cruise Lines Hit with Lawsuit Over ‘Undisclosed Kickbacks’ from Sale of Travel Insurance

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NCL Corporation LTD (doing business as Norwegian Cruise Lines) has been hit with a proposed class action in which two plaintiffs claim the company receives unlawful kickbacks through the sale of its “Booksafe Travel Protection Plan.”

The lawsuit says that while customers are shopping for cruise tickets, Norwegian attempts to sell them a travel insurance bundle underwritten by Transamerica, Nationwide, or Aon that is misrepresented as a pass-through charge. In reality, the case alleges, Norwegian receives an undisclosed kickback for each insurance policy it sells, with the cost of which hidden in the price of the policies.

The complaint points out that the aforementioned insurance companies have been the subject of recent regulatory investigations conducted over their use of “distribution participants” such as Norwegian to sell travel insurance. The investigations have led to settlement agreements, the case continues, but have failed to provide relief to “victimized consumers” who have allegedly been forced to pay inflated prices for travel insurance policies that included unlawful kickbacks.

This case comes after a similar lawsuit was filed in August 2018 against Carnival Cruise Lines over the same allegedly deceptive practices.