Travel insurers must play fair on volcanic ash and BA strike Telegraph.co.uk (blog)
Most people would agree there is no point buying travel insurance that will not pay out when – as happened again today – volcanic ash prevents planes flying . Or, as is currently due to happen tomorrow, British Airways go on strike .
But that is precisely the position in which many prudent people find themselves. They have done the sensible thing and bought travel cover – perhaps in the form of annual plans several months ago – but do not know whether it will pay compensation if their summer holiday is affected.
Hundreds of thousands of claims remain unpaid after fears of volcanic ash closed Britain’s airports on April 15. Wide variations emerged in what airlines will pay for and which insurers will meet compensation claims in full.
Most travel cover bought before April 15 will pay up but a majority of Britain’s banks now say policies bought since then will not pay claims arising from volcanic ash. Honourable exceptions who were still offering full cover on their travel insurance last week included Columbus; Direct Line; HSBC and its subsidiary First Direct; Marks & Spencer; Saga and Santander.
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