Insurers are considering claims from passengers who bought travel cover after the first volcanic ash event in April – in spite of advice last month suggesting that they wouldn’t.
Last month, the Association of British Insurers (ABI) said travellers taking out policies after April 15, would not be covered for future claims relating to eruptions from the Eyjafjallajokull volcano in Iceland – because it was a “known event”.
As a result, travellers buying insurance for upcoming trips would have no right to claim for abandonment and delay if future eruptions from the volcano disrupted flights.
Ash from the volcano led to the cancellation of tens of thousands of flights in the UK and Europe in mid April due to airspace closures.
However, with a new ash cloud leaving flights grounded in many parts of the UK today, the ABI has revealed that three providers are continuing to offer cover to travellers who bought policies after April 15.
They are:
● Chartis
● Aviva and
● LV=.
“Some insurers have adopted a more consumer-friendly stance on paying claims since our Frequently Asked Questions document was compiled, and we will be updating it to reflect this,” said and ABI spokesman.
“Some insurers are continuing to offer cover for policies purchased after that [April 15] date and you should therefore check with your insurer.”
But while the news may be welcomed by some passengers who bought their cover in the past month, many will have decided not to purchase travel insurance on the basis that the policies would not cover them for ash-related delays.
Passengers whose flights have been cancelled in recent days are advised first to contact their airline, which should offer either a full refund of the unused ticket or an alternative flight, said the ABI.
EU based airlines are required to offer you accommodation and meals if you are delayed getting home, it added.
Passengers with policies pre-dating the first ash-related airspace closures on April 15 are still advised to check the small print to see if they can claim for the current disruption.
Policies and insurance companies vary in terms of the events that they will cover. Some insurers that don’t pay out for volcanic eruptions are still making goodwill payments, but others are declining outright.
These insurers are allowing claims from UK customers whose flights have been grounded by the volcanic ash:
● Post Office
● Swiftcover
● Direct Line
● Barclaycard
● The Co-Op
● HSBC
● First Direct
● M&S Money
“While volcanic eruption is not a specific insured risk, and terms and conditions vary between policies, some cover for delay and subsequent travel abandonment may be available,” said the ABI.“Payment for any delay, whether outward or return, is usually a fixed sum for a specified delayed period up to a maximum figure.”
Which?, the consumer group, said: “If you’re affected by the travel crisis, first you should check the terms and conditions of your travel insurance to see whether disruption caused by this event is covered.
“If it is not explicitly excluded, contact the insurer to lodge a claim. It might be worth making a claim even if you think it might be excluded, as some insurers have stated that they will be covering this incident as a goodwill gesture, even though it might normally be excluded.”
Individuals who are travelling in the near future and have not yet bought a policy were strongly advised to check whether their insurer would cover ash-related disruption.
“You must do this before you click the ‘buy’ button because we don’t think the bulk of insurers will cover future volcano eruption,” said Graeme Trudgill of the British Insurance Brokers Association (Biba).
“Our insurers are treating the current disruption as though its the same event from last month, not a new one, and I expect this is how the rest of the industry will consider it.”
Similar Posts:
- Pay-out threat to flight claims
- Volcanoes and travel insurance: is my trip covered?
- Updated Statement from Seven Corners on the Volcanic Ash
- Travel insurance confusion over ash cloud
- BA strike – your questions answered
