Insurers group advises against travel insurance chaos

The British Insurance Brokers’ Association has advised travellers affected by travel related strikes or financial failure over the Christmas period saying that not all travel insurance policies are the same. The group urged travellers to contact their insurance provider to clarify their specific policy coverage, if they have booked independently of a travel agent or tour operator.

At the same time, BIBA said that all policies underwritten by Tokio Marine and those purchased from a BIBA broker are protected by the association. The protection will cover travellers providing the trip and insurance were purchased before the strike ballot was announced or, in the event of financial collapse before the financial failure was in the public domain.

If you are buying travel insurance then it makes sense to use a comparison site such as Confused.com to ensure that you are getting the best price for a policy that covers all your needs and circumstances such as company failures and airline strikes.

Steve Foulsham, BIBA technical services manager, said, “In many circumstances your travel agent or tour operator will simply make alternative arrangements but if you have booked independently you should speak to your insurance broker who can advise you during these difficult times.”

BIBA issued the advice as M&S Money has announced a refund in full foreign currency purchased from M&S by customers who have booked flights with Flyglobespan and are now unable to travel.

The airline’s parent company, Globespan, collapsed on Wednesday (December16), with all flights cancelled and around 4,500 passengers still in Spain, Portugal, Cyprus and Egypt.

M&S Travel Money customers can take their unused currency into any of the 122 M&S bureaux de change until close of business on Saturday 9th January 2010 and exchange it for the full amount of sterling that they paid for the currency.

Customers must provide proof of foreign currency purchase from M&S and proof of a booking with Flyglobespan. The offer is also open to customers who purchased currency from M&S Money via the internet or telephone.

Graeme Trudgill, BIBA technical and corporate affairs executive, added, “There is a lot of potential misery for many families travelling over the festive period, however, cover is available through insurance brokers to protect against future unforeseen strikes or financial failures. This really highlights the importance for travellers to focus on the cover within their policy and not just the price, especially independent travellers who are not assisted by package holiday protections.”