Travel insurance customers who had their flights grounded due to the volcanic eruption in Iceland can seek clarifications from new guidance issued.
The unprecedented event has lead the Association of British Insurers (ABI) and the British Insurance Brokers' Association (BIBA) to issue ad hoc advice.
On Thursday, April 15th, a volcanic eruption in Iceland caused tonnes of volcanic debris to be plunged into the atmosphere at about 20,000 feet.
Winds then scattered the atmospheric ash towards the UK and the rest of Europe, forcing airports in the region to come to a standstill.
Ash from volcanoes can cause jet plane engines to fail and flights have had to grounded due to safety reasons, inconveniencing many travellers.
The ABI has advised customers to contact their insurance companies as most Travel insurance policies would not cover volcanic eruptions for cancellation and delay.
According to the ABI, passengers of cancelled flights would usually be offered a full refund or an alternative flight by the concerned airline.
However, if the customer does not travel, then they can expect their Travel insurance premium refunded if they opted for a single trip policy.
Travel insurers can also amend the policy to accommodate new travel arrangements and dates owing to later alternative flights.
Customers who scrap their travel plans completely, however, would not be covered by the insurance policy.
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."
In a separate statement, BIBA clarified that BIBA Protect Travel insurance policies purchased from BIBA brokers would cover customers for all travel delay and cancellations caused by the volcanic dust cloud.
BIBA further confirmed that travel insurance could be transferred to new travel plans and advised customers to contact their individual insurance brokers. |
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