I am sorry that this is longwinded but it may help fellow OZBargainers.
Background: I book One-Way outwards flights for AirAsia via Paypal to avoid AA’s booking fee. And then I sometimes book the returning leg with Frequent Flyer points.
My Email to Amex Insurance:-
"I have free travel insurance under my Platinum Charge Card. I would like to check two scenarios to see if I will have automatic Amex travel insurance cover.
1. If I pay for my full return flight with Amex Platinum Charge Card but the payment made is via paypal?
2. If my one way outwards flight is paid with Amex Platinum Charge Card. And my one way returning flight is paid with Frequent Flyer points and fees & taxes paid with my Amex Platinum Charge Card?"
Their response, which is basically saying ‘No Worries’:-
"PayPal can activate the insurance only when an equal debit from the American Express account by PayPal. In the event of a claim, we would request a receipt for the fares as well as a copy of the American Express card account statement and PayPal activity statement to demonstrate activation.
The activation of the insurance is purchasing the full amount of your fares departing and returning to Australia as well as any internal transfers within Australia using your Platinum Charge card or American Express Membership points or a combination of the two. There is no expectation as to the cost of the fares just as long as 100% of the fares that you are required to pay to have been charged using one of those payment methods.
Also there is no expectation on how your accommodation, pre booked tours or side trips are paid for while on the trip.
Please do not hesitate to contact us at 1800 236 023 and we are open from 8AM to 8PM Sydney Time should you require further assistance. Email [email protected]"
Note: Using Paypal you might have a paypal credit like (rebates or refunds), so then you should make sure that you debit equal amount to flight cost and are not dipping in to your Paypal credit.