Travel Insurance And Travel Disruption Due To Volcanic Dust Cloud

With the prospect of no flights out of the UK due to a cloud of ash from an icelandic volcano, many passengers face travel chaos but are the disruptions and delays covered by travel insurance?

According to the ABI (Association of British Insurers), volcanic eruptions are not always covered by travel insurance for cancellation and delay. Some policies though will provide cover and you are advised to check the position with your specific policy with your travel insurance company.

Nick Starling, the ABI’s Director of General Insurance and Health, said: “Travel insurance policies will differ in this situation; there is no standard set of conditions which applies to a situation of this kind. Therefore customers should check their travel insurance policy, and speak to their travel insurer to understand what their individual policy covers them for in this situation.”

If your flight is cancelled

• most airlines will offer you either a full refund or an alternative flight. Most travel insurers will amend your policy to cover new travel arrangements and dates should you accept an alternative flight at a later date
• and you do not travel, most travel insurers will refund your premium if you took out a single trip policy

If you simply decide you no longer wish to travel this will not be covered by your travel insurance policy.

In all situations you should be aware that you will need to provide evidence of cancelled or delayed flights if you seek to make a claim against your travel insurance.

Be aware that travel insurance only covers events that occur after the policy has been taken out. This means that if you buy travel insurance from today onwards you will not be covered for this event.

Paul Green, Head of Communications, Saga Services, comments on how Saga travel customers are affected by the news that flights are being cancelled due to volcanic ash: “Saga travel insurance customers are covered should they need to cancel their holiday (limit of £5,000) after a delay of 24 hours or more from the time of their international outward departure. If a flight is merely delayed, after 12 hours a benefit of £35 is payable and a further £15 for each 12 hours thereafter, up to a maximum of £215. For both these measures to apply customers must have checked-in for their flights in line with original booking conditions.”

He added “If a customer is already on holiday and the return flight is cancelled they must speak to their airline/tour operator directly. If they have already checked-in for their international return journey to the UK and the delay is of 12 hours or more, the claim for Travel Delay applies. In addition, as the circumstances are beyond control, our insurance cover automatically extends, without charge, until such time as they are able to return to the UK.”