Understanding Your Rights When Your Flight is Cancelled

If your flight is cancelled, your immediate concern is likely getting to your destination or recouping your costs. It's vital to know that you are not powerless. Depending on the region where your flight operates, the airline's home country, and the specific reason for the cancellation, you may be entitled to compensation, a refund, or rebooking assistance. This article clarifies your rights and explains how to navigate these situations to ensure you receive what you are owed.

  • Know your rights based on flight origin, destination, and airline.
  • Compensation, refunds, and rebooking are potential entitlements.
  • Documentation is key for any claims.
  • Understand different cancellation reasons and their impact.

A cancelled flight can be incredibly disruptive. Airlines often have obligations to passengers when they cancel a flight, but the extent of these obligations varies significantly. Factors such as the length of the delay before cancellation, the reason for cancellation, and whether you are traveling within, to, or from a region with strong passenger protection laws (like the European Union or the UK) all play a role in determining your entitlement. The most common passenger rights include the right to a refund, the right to be rerouted on the next available flight, or the right to be rerouted on a later flight at a mutually convenient time. Compensation, however, is often conditional on the cancellation not being due to extraordinary circumstances.

Crucially, always keep records of everything related to your flight, including booking confirmations, cancellation notices, boarding passes, and receipts for any expenses incurred due to the disruption. This documentation is indispensable when filing a claim or disputing an airline's decision. Even if the airline initially states you are not entitled to compensation, a well-documented claim can often lead to a successful outcome. Remember, airlines are businesses, and while they aim for smooth operations, disruptions happen. Their procedures and policies are designed to manage these events, but passenger rights regulations exist to ensure fairness.

When Are You Entitled to Compensation?

The core of determining entitlement to compensation hinges on two primary factors: the reason for the cancellation and the amount of notice given by the airline. Generally, if a flight is cancelled due to reasons within the airline's control – such as technical issues not related to a safety defect, operational problems, or crew shortages – passengers are more likely to be entitled to compensation. This is because these are issues the airline could have reasonably prevented or managed.

Conversely, if the cancellation is caused by events beyond the airline's reasonable control, often termed 'extraordinary circumstances,' compensation is typically not owed. These can include severe weather conditions, air traffic control strikes, political instability, security risks, or acts of God. However, even in these situations, airlines usually still have a duty of care, meaning they must offer assistance like rebooking or refunds.

The amount of notice provided by the airline also influences compensation. Regulations like EU 261/2004, which covers flights within the EU, departing from the EU, or arriving in the EU on an EU carrier, specify thresholds. For instance, under EU 261, if your flight is cancelled with less than 14 days' notice, you might be entitled to compensation, provided the cancellation wasn't due to extraordinary circumstances. The exact amount of compensation varies based on the flight distance and the length of the delay at your final destination if you are rebooked.

The airline's internal operational issues are the most common triggers for compensation eligibility.

What Happens if a Flight is Delayed Over 3 Hours?

When a flight is delayed, passenger rights can become applicable after a certain threshold. For many regulations, including EU 261, a significant delay at your final destination can be treated similarly to a cancellation if it causes you to arrive three or more hours later than originally scheduled. In such cases, you might be entitled to financial compensation, akin to what you would receive for a cancellation, provided the delay wasn't caused by extraordinary circumstances.

The critical element here is the delay at your final destination, not just at the departure gate. If your original flight is delayed but you are rebooked onto a new flight that results in a substantial delay at your final destination, that delay is what is measured. For example, if your flight is cancelled and you are rebooked on a flight that arrives six hours after your original scheduled arrival, you may be eligible for compensation.

This rule aims to compensate passengers for the inconvenience and loss of time caused by significant disruptions. It's important to note that airlines might offer amenities like meal vouchers or accommodation for longer delays, but these are part of their duty of care and do not negate potential compensation claims if the delay meets the criteria.

Navigating Different Cancellation Scenarios

Flight cancellations aren't uniform; understanding the specific scenario you're facing is the first step toward knowing your rights. The reason behind the cancellation, whether it's a weather event or a technical fault, dramatically shapes your entitlement.

When a flight is cancelled due to adverse weather conditions, such as a hurricane, the airline is generally not obligated to pay financial compensation. These are typically considered extraordinary circumstances beyond their control. However, they must still offer assistance, which usually includes rebooking you on the next available flight or providing a full refund for the unused portion of your ticket. If you incur essential expenses (like meals or accommodation) due to the disruption, it's worth checking your airline's policy or travel insurance, as some may cover these costs even for weather-related cancellations.

Another common disruption is when an airline overbooks a flight. If a flight is oversold and you are denied boarding involuntarily because there aren't enough seats, you are typically entitled to compensation, often in addition to being rerouted or refunded. This is because overbooking is an operational decision made by the airline. Regulations usually mandate specific compensation amounts for denied boarding due to overbooking, which can be quite substantial.

Documenting the reason for cancellation, whether stated by the airline or observed, is vital.

What happens if an airline cancels my flight, like an Air India or AirAsia flight, when I have a connecting flight? If your initial flight is cancelled and this causes you to miss a connecting flight booked on the same ticket, the airline responsible for the first flight (or the booking agent) should rebook you on the next available connection to your final destination. If the cancellation and subsequent delay result in a significant arrival delay at your final destination, you may also be entitled to compensation under relevant passenger rights regulations. Always ensure your entire journey is booked under a single reservation to benefit from these protections.

What Happens if a Flight is Oversold?

When an airline oversells a flight, it means they have sold more tickets than available seats, anticipating that some passengers might not show up. If, however, everyone who booked shows up, the airline may have to ask for volunteers to give up their seats in exchange for benefits. If not enough passengers volunteer, the airline may deny boarding to some passengers involuntarily.

If you are involuntarily denied boarding because a flight is oversold, you are typically entitled to significant compensation. Regulations vary by region, but generally, this compensation is in addition to the right to choose between a refund for your ticket or re-routing to your destination at the earliest opportunity. The amount of compensation is usually tiered based on the length of the flight and the delay at your final destination.

It is crucial to understand that if you volunteer to give up your seat, you might receive different compensation, often in the form of flight vouchers or travel credits, which may not be as financially substantial as the mandatory compensation for involuntary denied boarding. Always clarify the terms before agreeing to volunteer. If you are forced to give up your seat, you are protected by law.

Always ask for clarification in writing from the airline regarding your rights and compensation if you are denied boarding due to overbooking.

What Happens if My Connecting Flight is Missed Due to a Delay?

Missing a connecting flight due to a delay on your initial flight is a common travel headache. If both flights were booked under a single ticket or reservation (often referred to as a 'protected' connection), the airline or tour operator is responsible for getting you to your final destination. They must rebook you on the next available flight, often with partner airlines if necessary, at no extra cost.

The key consideration for compensation entitlement in this scenario is the arrival time at your final destination. If the delay caused by the missed connection results in your arrival at your final destination more than three hours later than originally scheduled, you may be entitled to financial compensation, provided the initial delay was not due to extraordinary circumstances. This is particularly relevant under regulations like EU 261.

If your connecting flights were booked separately (an 'unprotected' connection), the responsibility shifts. The airline operating the delayed first flight is generally only responsible for getting you to the airport where your second flight departs. You would then be responsible for booking a new ticket for the missed onward journey, and you would likely not be entitled to compensation from the first airline for the missed connection, although you might still be able to claim for the initial delay itself if applicable.

Verify that both legs of your journey are on a single booking to ensure your connection is protected.

Proving Your Case: Documentation and Claims

Successfully claiming compensation after a flight cancellation or significant delay hinges on your ability to present a clear, well-supported case. The airline will require evidence to validate your claim, so meticulous record-keeping is paramount from the moment the disruption occurs.

Your primary evidence should include your booking confirmation, original itinerary, and boarding passes. Crucially, you need proof of the cancellation or delay itself. This could be an official email or SMS from the airline, a screenshot of the flight status showing the cancellation, or a formal letter from the airline confirming the reason. If the cancellation was due to a specific event, like a strike or severe weather, gather public information about it to support your case if the airline attributes it to such an event.

Any expenses you incurred as a direct result of the cancellation – such as meals, essential clothing, toiletries, or accommodation – should be documented with itemized receipts. Keep these organized, as they can be claimed back separately from compensation, particularly if the airline failed in its duty of care.

Detailed records of all communications with the airline are essential.

When submitting a claim, it's often best to do so directly through the airline's customer service or claims portal first. Many airlines have specific procedures and forms for this purpose. Be precise in your claim, referencing the relevant passenger rights regulation if applicable (e.g., EU 261). Clearly state the flight details, the nature of the disruption, the resulting delay at your final destination, and the compensation you believe you are entitled to. Provide copies of all your supporting documents.

If the airline rejects your claim or fails to respond within a reasonable timeframe (which varies by region but is often around 4-6 weeks), you can escalate the matter. This typically involves lodging a complaint with the relevant national enforcement body (NEB) for aviation passenger rights in the country where the incident occurred or where the flight was scheduled to depart from or arrive in. Alternatively, accredited alternative dispute resolution (ADR) bodies or, in some cases, small claims courts can be used.

Gathering Evidence for Weather-Related Cancellations

Even when a flight is cancelled due to weather, which generally exempts airlines from paying compensation, collecting evidence is still important. If the airline claims 'extraordinary circumstances' like a hurricane, storm, or fog, they must prove that the weather was indeed the cause and that it was severe enough to prevent the flight. Your role is to gather information that supports or counters this claim.

For example, if the airline states a hurricane cancelled your flight, research the official meteorological reports for the date and location. Were there active advisories? If your departure airport was not directly affected but the airline claimed adverse weather elsewhere caused the cancellation, gather evidence about conditions at both locations. Sometimes, airlines incorrectly classify cancellations as weather-related when they were actually due to operational issues. Proving this discrepancy can strengthen your claim for compensation.

Keep records of all communication from the airline regarding the reason for cancellation. If they provide a vague explanation, press them for specifics. Receipts for any necessary expenses incurred due to the cancellation, such as a hotel room or meals, are also crucial evidence, as airlines usually have a duty of care to provide these or reimburse reasonable costs, regardless of the cancellation reason.

The burden of proof often lies with the airline to demonstrate 'extraordinary circumstances'.

Check official weather archives from meteorological services or aviation authorities for the relevant dates and locations. If the weather was reported as normal, or only mildly inconvenient, but the airline cancelled the flight citing it, you have a strong basis for appeal. This proactive evidence gathering can be the difference between an accepted claim and a denial, even in cases where direct compensation might not be due, but reimbursement for expenses is.

What to Include in Your Compensation Claim

When you are ready to formally submit a compensation claim, whether directly to the airline or through an ADR body, clarity and completeness are key. Your claim should be structured logically and include all necessary information to process it without delay.

Start by clearly identifying yourself and the flight in question. Include your full name, booking reference number, flight number, date of travel, and the scheduled departure and arrival times and airports. State explicitly that your flight was cancelled or significantly delayed, and that you are seeking compensation under applicable passenger rights regulations. If you are eligible under a specific regulation, mention it (e.g., EU Regulation 261/2004 or the UK equivalent).

Detail the reason the airline provided for the cancellation and, if applicable, explain why you believe it was not an 'extraordinary circumstance' or was within the airline's control. If your flight was cancelled and you were rebooked, state the original scheduled arrival time and the actual arrival time at your final destination. The difference in hours is often what determines the compensation amount. Attach all supporting documentation: booking confirmation, original ticket, boarding passes, cancellation notice from the airline, and receipts for any expenses incurred.

Clearly articulate the impact of the disruption on your travel plans.

Finally, state the specific amount of compensation you are claiming, referencing the prescribed amounts for the flight distance and delay (if applicable). If you are also claiming reimbursement for incurred expenses, list these separately with their total sum and attach all corresponding receipts. Ensure your contact details and preferred method of payment are provided. A well-prepared claim form saves time and increases the likelihood of a prompt and favorable resolution.

Understanding Airline Responsibilities and Duty of Care

Beyond potential financial compensation, airlines have specific duties of care towards passengers affected by cancellations and significant delays. These obligations are designed to mitigate the immediate impact of the disruption and ensure passengers are not left stranded or without basic necessities.

The extent of this duty of care depends on the length of the delay and the circumstances of the cancellation. For significant delays or cancellations, airlines are generally required to provide passengers with:

  • Information: Passengers have a right to be informed about the situation, the reasons for it, and potential alternative travel arrangements. This information should be provided promptly.
  • Meals and Refreshments: If the delay is prolonged, airlines must offer reasonable refreshments and meals, proportionate to the waiting time. This usually means vouchers or access to an area where food can be purchased.
  • Accommodation: If a cancellation or delay necessitates an overnight stay, the airline must provide hotel accommodation. This includes transfers to and from the hotel.
  • Communication: Passengers should be given access to communication, typically two free phone calls, telex, fax messages, or emails.

These provisions are part of the airline's duty of care and are often provided regardless of whether the cancellation was due to extraordinary circumstances. They aim to ensure passenger comfort and safety during unexpected disruptions.

The airline's duty of care is distinct from financial compensation.

If an airline fails to provide these essential services, you may be able to claim reimbursement for reasonable expenses you incurred yourself. Keep all receipts for these expenses, as they will be necessary when making such a claim. For instance, if you had to pay for a hotel room because the airline did not provide one, you can usually claim this back, provided it was a necessary expense and the cost was reasonable.

It's important to distinguish between compensation for the inconvenience (financial payment for the disruption itself) and reimbursement for necessary expenses incurred due to the airline's failure to provide its duty of care. Both can be claimed, but they are separate types of claims with different supporting evidence requirements.

What Assistance Must an Airline Provide?

When your flight is cancelled, delayed, or you are denied boarding, airlines are obliged to offer specific forms of assistance, irrespective of whether compensation is due. These services are a fundamental part of passenger rights and are often referred to as the 'duty of care'.

Firstly, passengers must be kept informed. This means receiving timely updates about the flight status, the reasons for the disruption, and information about available alternative travel options. This communication should be clear and accessible.

Secondly, if a delay is significant, the airline must provide appropriate refreshments and meals. For example, if the delay is expected to be two hours or more, vouchers for food and drinks are typically offered. The value and availability of these refreshments are proportionate to the waiting time.

Thirdly, if the disruption requires an overnight stay, the airline must arrange and pay for hotel accommodation. This includes transfers between the airport and the hotel. Passengers should not be expected to bear these costs themselves unless the airline explicitly states otherwise and provides a clear reimbursement process.

Ensuring you receive your entitled assistance is as important as claiming compensation.

Finally, passengers should be given access to communication facilities, such as telephone calls or emails, to inform their families or business contacts about their situation. These services are there to manage the immediate fallout of a disruption and ensure passengers are looked after while awaiting their alternative travel arrangements.

Rebooking vs. Refund: Your Options Explained

When a flight is cancelled, you typically have two primary options offered by the airline: rebooking or a refund. Understanding these choices and their implications is crucial for making the decision that best suits your travel needs and financial situation.

Rebooking: This involves the airline arranging an alternative flight to your destination. You can usually choose between:

  • The next available flight, which might be on the same airline or a partner airline, getting you to your destination as soon as possible.
  • A later flight at a mutually convenient date. This option is useful if your travel plans are flexible and you don't need to travel immediately.

When rebooked, your original ticket remains valid for the new flight. If the new flight causes a significant delay to your arrival at your final destination (typically three hours or more under regulations like EU 261), you might still be entitled to financial compensation. The airline should not charge you any additional fees for this rebooking.

Refund: If you no longer wish to travel, or if the rebooked flight does not suit your needs, you are entitled to a full refund for the unused portion of your ticket. This refund should cover the cost of the original flight and any associated charges. If the cancellation occurred partway through a journey, you are entitled to a refund for the remaining unused segments and, if applicable, a return flight to your original departure point at the earliest opportunity.

Some regulations also allow for a refund even if you are rebooked, if the new flight significantly alters your travel plans, for example, if it departs very early in the morning or late at night when you had scheduled daytime travel. It is important to consider which option best serves your immediate needs and potential for compensation.

Know your right to choose between rebooking and a refund when your flight is cancelled.

The choice between rebooking and a refund often depends on your priorities. If reaching your destination is paramount, rebooking is the logical choice. If your plans have been so disrupted that you no longer wish to travel, or if the offered rebooking is unsuitable, a refund is your right. Remember that accepting a refund usually means forfeiting any right to compensation for the cancellation itself, as you are no longer undertaking the journey. However, if you were denied boarding due to overbooking, you can often claim compensation and choose a refund or rebooking.

Specific Passenger Rights: EU 261 and Beyond

Passenger rights regulations are designed to protect travelers from the inconvenience and financial loss caused by flight disruptions. The most comprehensive and well-known of these is EU Regulation 261/2004 (often shortened to EU 261). This regulation sets a high standard for passenger protection for flights operating within or connected to the European Union.

EU 261 applies to:

  • Flights departing from an EU airport.
  • Flights arriving at an EU airport from a non-EU country, operated by an EU airline.

Under EU 261, if your flight is cancelled, you are entitled to assistance and compensation. The compensation amounts are fixed and depend on the flight distance and the delay at your final destination if rebooked. For cancellations with less than 14 days' notice, and not caused by extraordinary circumstances, compensation can range from €250 for short-haul flights to €600 for long-haul flights. Airlines must also offer re-routing or a refund.

EU 261 provides significant protection for flights within or involving the EU.

Other regions have their own passenger rights regulations. For example, the United Kingdom has its own version, the UK 261, which mirrors EU 261 for flights involving the UK. Canada has the Air Passenger Protection Regulations (APPR), which cover cancellations, delays, and denied boarding. The United States has fewer federal protections for domestic flights, relying more on airlines' own policies and the Department of Transportation's oversight, but strong protections exist for international flights involving the US, often covered by EU 261 or other international agreements.

It is crucial to identify which regulation applies to your specific flight. The airline's home country or the departure/arrival airport are key indicators. Always check the specific rules applicable to your journey, as these regulations can significantly differ in their scope, compensation levels, and conditions.

How to Check if Your Flight is Covered by EU 261

To determine if your flight cancellation is covered by EU Regulation 261/2004, you need to consider the flight's origin and destination in relation to the European Union. The regulation is quite specific about its applicability.

Firstly, if your flight departed from an airport located within an EU member state, it is covered by EU 261, regardless of the airline's nationality. This includes flights from countries like France, Germany, Spain, Italy, and even smaller member states. This protection applies even if the flight is heading to a destination outside the EU.

Secondly, if your flight was arriving at an EU airport from a non-EU country, it is covered only if the operating airline is an EU-based carrier. For example, a flight from New York to Paris operated by Air France (an EU carrier) would be covered. However, a flight from New York to Paris operated by American Airlines (a US carrier) would not be covered by EU 261 for delays or cancellations, though other passenger rights might apply.

The flight's departure point and the airline's base country are the primary determinants for EU 261 coverage.

Flights between two non-EU countries are not covered by EU 261, even if operated by an EU airline. Also, flights that are considered 'extraordinary circumstances' (like severe weather, air traffic control strikes, or security risks) are exempt from compensation, although the duty of care (assistance, rebooking, refund) still applies. The key is that EU 261 provides financial compensation for cancellations or significant delays that are within the airline's control and made with insufficient notice.

Checking the applicability of EU 261 is the first step to understanding your potential entitlement. If your flight falls under its scope and was cancelled with less than 14 days' notice, and not due to extraordinary circumstances, you likely have a claim for compensation.

What Are Extraordinary Circumstances?

Extraordinary circumstances are events that are beyond the airline's control, and which could not have been avoided even if all reasonable measures had been taken. These are the primary justification airlines use to deny compensation for flight cancellations or significant delays. However, the airline must prove that such circumstances existed and directly caused the disruption.

Common examples of extraordinary circumstances include:

  • Severe weather conditions that make the flight unsafe to operate (e.g., hurricanes, heavy snow, dense fog, volcanic ash clouds).
  • Air traffic control restrictions, strikes, or decisions.
  • Unforeseen safety risks, such as bird strikes or medical emergencies onboard.
  • Political or civil unrest, security threats, or acts of terrorism.
  • Sudden, unexpected shortcomings affecting flight safety that were not caused by routine maintenance.

It is crucial to understand what does *not* generally count as extraordinary circumstances. These typically include: technical problems (unless they are a direct result of an unforeseen safety issue not related to normal operations), operational issues (like crew shortages, late-arriving aircraft due to previous delays, or catering problems), or 'normal' weather that does not pose a safety risk. If a flight is cancelled due to a technical fault, the airline must demonstrate that the fault was unforeseen and not a result of standard maintenance or wear and tear.

The airline must prove that the disruption was unavoidable and beyond their control.

If an airline claims extraordinary circumstances, such as a hurricane cancelling a flight, you should verify the conditions. Official meteorological reports can be used to confirm or refute the claim. The fact that other flights by the same airline or other airlines were able to operate safely under similar conditions can also be evidence against an extraordinary circumstance claim. Remember, while extraordinary circumstances may exempt airlines from paying compensation, they generally do not absolve them of their duty to provide assistance, such as rebooking or refunds.

Making a Claim: Step-by-Step Process

Navigating the process of claiming compensation for a cancelled flight can seem daunting, but by following a structured approach, you can effectively pursue your entitlement. The first step is always to confirm your eligibility based on the regulations applicable to your flight and the circumstances of the cancellation.

Once eligibility is established, the most direct route is usually to submit a claim directly to the airline. Most airlines have a dedicated customer relations or claims department, often accessible via their website. You will typically need to fill out a claim form or send a detailed email, providing all flight details, your booking reference, and a clear explanation of the disruption and its impact.

Crucially, attach all supporting documentation: your original booking confirmation, boarding passes, the cancellation notice from the airline, and receipts for any expenses incurred. Be precise about the compensation amount you are claiming, referencing the relevant regulation and flight distance if applicable. Give the airline a reasonable timeframe to respond, usually between 4 to 8 weeks.

Prepare your claim thoroughly with all required documentation.

If the airline rejects your claim, offers an inadequate settlement, or fails to respond within the expected timeframe, your next step is to escalate. This often involves contacting the relevant national enforcement body (NEB) responsible for passenger rights in the country where the incident occurred or where the flight was due to depart/arrive. Alternatively, you might consider using an accredited Alternative Dispute Resolution (ADR) service if available, or pursuing a claim through small claims court, depending on the jurisdiction and the amount of compensation sought.

Third-party claims management companies can also assist, but be aware that they typically take a percentage of any compensation awarded. Weigh the benefits of their expertise against the cost before engaging their services. Thorough preparation and persistence are key to a successful claim.

When to Use a Claims Management Company

Claims management companies can be a useful resource, particularly for passengers who lack the time, expertise, or confidence to navigate the claims process independently. These companies specialize in dealing with airlines and regulatory bodies, often understanding the nuances of passenger rights legislation and the typical objections raised by carriers.

You might consider using a claims management company if:

  • Your claim is complex, involving multiple flights or detailed arguments against the airline's reasons for cancellation.
  • The airline has rejected your claim, and you are unsure of the next steps to appeal.
  • You have limited time or resources to dedicate to pursuing the claim yourself.
  • You prefer to delegate the entire process to professionals.

These companies typically work on a 'no win, no fee' basis, meaning they only get paid if they successfully recover compensation for you. Their fee is usually a percentage of the compensation awarded, which can range from 20% to 30% or more, plus VAT. It is essential to read their terms and conditions carefully, understanding the exact fee structure and what happens if your claim is partially successful.

Compare the fees of different claims companies before committing.

While these companies can increase your chances of success and save you effort, it's important to remember that they are intermediaries. You can often achieve the same results by yourself if you are willing to put in the effort. Always compare the services and fees of different companies, and consider whether the percentage they charge is worth the convenience and potential increase in success rate compared to pursuing the claim directly through the official channels.

What if the Airline Offers a Voucher Instead of Cash?

Airlines may sometimes offer travel vouchers or credit notes instead of direct financial compensation or a cash refund, especially during periods of high disruption or for specific types of claims. While a voucher might seem like an attractive option, especially if it includes a bonus value, it is crucial to understand your rights.

Under regulations like EU 261, passengers are generally entitled to a cash refund or compensation if they choose not to travel. Accepting a voucher means you are agreeing to receive future travel benefits rather than immediate monetary compensation. This is usually a choice, not an obligation.

Consider the following:

  • Flexibility: Cash is universally accepted. Vouchers can only be used with that specific airline and may have strict expiry dates or blackout periods, limiting when and how you can use them.
  • Value: Some airlines offer a bonus percentage on vouchers (e.g., 10% extra value). If this bonus is significant and you are a frequent flyer with that airline, it might be worthwhile.
  • Terms and Conditions: Carefully read the terms of the voucher. Does it expire? Are there restrictions on routes or dates? Can it be transferred to someone else?

Your right to a cash refund or compensation often supersedes an airline's offer of a voucher.

If you are entitled to cash compensation or a refund, you generally have the right to insist on receiving it in cash (or by bank transfer). If the airline insists on issuing a voucher when you are legally entitled to a cash payment, you can refuse it and continue to pursue the cash option. If they refuse to provide cash, you may need to escalate your claim through the appropriate regulatory bodies or ADR schemes.