Wife's illness hit travel cover

I organised a joint travel insurance policy for myself and my wife with Direct Line, telling them about her breast cancer. They sent her confirmation showing that this condition was excluded from her policy. My separate confirmation mentioned no exclusion.

Her health deteriorated and we had to cancel our holiday. I claimed for my costs, but Direct Line refused to settle. They said my confirmation included a paragraph excluding any pre-existing medical condition - but it didn't. I was not made aware that I did not have any cover for a claim arising from my wife's medical condition.
GT, Oldham

Direct Line still insists it was right to reject your claim, and indeed it is standard that, when travel policies exclude claims for a disclosed condition, it applies to everyone in the party. Obviously if your wife had to cancel her holiday, you would not go away without her. The position would be the same if you had bought two separate policies.

Direct Line says, because of confidentiality rules, it could not mention your wife's condition in your confirmation and accepts that the rejection letter was wrong to say it had done so.

As a result of your experience, Direct Line will change the wording of such letters to make clear the exclusion affects everyone travelling together. However, in sympathy with your wife's illness, it has agreed to make a £500 ex gratia payment towards the £844 you claimed.

Doctor diagnoses trouble over missing years of service

I am a doctor and have worked for a health
insurer since 1989. In 1992, the company changed
my status from self-employed to employed and
the terms of employment said I was not eligible to
join the company pension scheme. Events unfold,
I joined the final salary pension scheme in 2001
and asked if I might purchase benefits from my
previous years of service. The trustees said it was
not possible. Do I have a right to buy past years?
It seems unfair not to allow an employee to
purchase as much pension and he or she is
willing to pay for.
AC, Cambridge

The trustees have answered your question too
narrowly. Certainly the pension scheme can decide
whether or not members are allowed to buy back
added years, but they are legally obliged to give you
access to an Additional Voluntary Contributions (AVC)
scheme. The main difference is that buying added
years gives you the employer's guarantee of the
pension you will get, but AVCs are money purchase
schemes so you are at the mercy of annuity rates and
investment performance. You could buy a free-standing
AVC, which is unconnected with your company
scheme, but it is likely to be more expensive.

When is an Isa not an Isa?

I have a mini-cash Isa and a Tessa-Isa which I want to transfer from a building society to HSBC. They suggest I combine the two accounts for the higher rate. Is this legal? If the combined product is neither a mini cash Isa nor a Tessa-only Isa (Toisa), what is it?
PL, London

Isa providers are confused about whether, and how, legally you can switch Tessa-only Isa money around - and so am I.

The Inland Revenue, which has to be the final voice, confirms that up to £9,000 capital from a matured Tessa, on top of your annual allowance, can go into the cash element of a maxi Isa, a mini cash Isa or a Tessa-only Isa.

If you already have a Tessa-only Isa, the capital plus interest earned since it became a Toisa can be moved to any cash Isa, but not in the tax year that it became a Toisa. And, of course, only if the provider will accept it.

Abbey National told a customer the Inland Revenue does not allow Toisas to be combined with cash Isas, but now says that, since Isas started, the Revenue has eased the rules and it is still working to the old rules but will change soon. Not so, says the Revenue: this is the way it has always been.

As for a name for a combined Toisa and cash Isa, HSBC suggests 'mini-cash Isa with a large balance'.

Taxing problem of my allowance

I own a guesthouse and also have income from a teacher's pension. With notification of my pension increase this year, I discovered that the income tax had more or less doubled to just under 20 per cent.

It appeared that no personal allowance had been applied. The notice of coding showed that the personal allowance was offset by an equal £4,615 called 'other earned income'. What that is I know not.

As a result, I will receive no tax allowance for this financial year until I settle my income tax payment on self-employed income next January, with considerable effect on our cash flow.
BC, Keswick

It seems that your personal allowance was previously allocated against your pension but has now been moved to your self-employment without explanation. Even if there is a good reason for this, you should have been told.

The Inland Revenue says that normally allowances are allocated taking into account the circumstances and wishes of each taxpayer. Contact your local tax office and talk to them directly to find out why your allowance has been changed.

When my tickets made an exit

In April 2002, I received a birthday present of £30 in First Call theatre vouchers, valid for one year, bought at Selfridges. In February, I phoned to book tickets and was told I had to book a week ahead as I had to post my vouchers to Donegal.

There was no reference number on the vouchers. I chose a performance on 7 March, even though front stalls were available from the theatre for less than the £27.50 at First Call. The tickets had not arrived by 7 March, so I phoned. First Call said my request had not been dealt with until 4 March and I should pick up the tickets that evening at the theatre box office.

I soon had a call back saying that was a mistake. They had not received my vouchers, but could provide me with a ticket if I paid again. They said I should have given 10 working days' notice of a booking and, when vouchers arrive too late, they return them. Nothing has arrived.
AW, Barnet

Nobody appears to have told you that you should have redeemed these vouchers through Selfridges' theatre desk and not First Call.

When you tried to book with First Call, the company says it would have reserved the tickets until your vouchers arrived. When they did, it would have realised it could not complete the order and would pass the vouchers and order on to Selfridges.

Both companies have investigated, but neither can establish if they received the vouchers. So First Call is issuing you its own vouchers for £30, valid for another year.

· Email Margaret Dibben at money.writes@observer.co.uk or write to Margaret Dibben, Money Writes, The Observer, 119 Farringdon Road, London EC1R 3ER and include a telephone number. Do not enclose SAEs or original documents. Letters are selected for publication and we cannot give personal replies. The newspaper accepts no legal responsibility for advice.