Specialist Insurer says Janet Jackson fans hoping for a refund are likely to be disappointed

Ticket holders for the upcoming Dstv Delicious Festival who were hoping to cash-in on their tickets following the cancellation of Janet Jackson’s performance due to a family commitment are unlikely to succeed, says Mamoeti Nosi, Product Head ofEvents at Specialist Insurer iTOO Special Risks.

She says the mere withdrawal of one headline performer is not sufficient grounds to claim a refund as the concert is still going ahead. “As the concert is not cancelled as a whole and there is just a change in one of the headline acts for one of the two days of the festival, the organisers are not obliged to refund ticket holders as they have given them the opportunity to exchange their tickets for an alternative concert date,” adds Nosi.

Ticketmaster, the agency handling the Dstv event, stated policy on cancellations says that “we can’t offer any exchanges or refunds if your event is going ahead on the date originally planned, you can however cancel your tickets in line with our purchase policy”. Though this cancellation option is only applicable 60 days prior to the event.

However, Nosi does not rule out the possibility that the concert organisers may consider a refund even though they are legally not obliged to do so. She says the organiser may prioritise other considerations in making such a decision to refund ticket holders. “If a concert organiser under these circumstances opts to offer a refund, though under no legal obligation, the decision may be due to other long term strategic considerations including potential impact on their reputation,” says Nosi. Reputation and financial survival are two cornerstones in any eventing, recreational or exhibition business,” adds Nosi.

“In this particular instance for Dstv Delicious Festival, the organisers managed to secure two high profile international acts to replace Janet Jackson, so the financial costs they have incurred in such a close timeframe to the event, would likely mean that choosing to refund would be the less viable option. Reputationally, they may take a hit with disappointed Janet Jackson fans, but they have a plan in place to uphold the standards of the concert”. Having a mitigation plan is crucial for any event organizer.

In South Africa, Nosi says it is possible for both the event organiser and a ticket holder to purchase insurance to cover themselves against a number of unfortunate potential outcomes. The event organiser may purchase insurance to cover against liability arising from the event not going ahead or concert goers sustaining injury amongst other risks. The ticket purchaser’s cover will trigger a refund in the event of sickness, death of a family member, travel delays due to motor vehicle failure, unavoidable work emergency or work relocation among other reasons.

She says the instrument of insurance is designed to restore a person’s material or financial condition prior to the occurance of a risk insured against, it is not to profit the insured. Insurance is a necessary protection mechanism that offers relief from a number of risks that we face on a daily basis in our personal and professional lives, when abused, the consequences impact both the individual and the market as a whole, concludes Nosi.