Insurance News

10/08/2010   Pot Volcanic Ash Cloud - Am I covered?

Now that the dust has settled how has the Travel Insurance Market reacted to the unforeseen and never before occurrences relating to Eyjafjallajökull the Icelandic volcano that's brought Europe's air travel to a halt?

The airlines are liable for additional travel, accommodation and sustenance expenses so in most cases it would not be necessary to make a claim on your travel insurance policy. However that said, we are advised by some insurers with whom we deal that they will consider each case on its own merits and as long as the Insured Person has acted in a reasonable manner (i.e. not booked 5 star hotels, when they were originally staying in a Travelodge) they will look to settle the claim and make good any irrrecoverable losses.

Whilst cover is not excluded any claims relating to the original eruption which occurred in April 2010 could be deemed to a an event that was ‘reasonably foreseeable’ and if this was the case an Insurer could repudiate your claim. You may ask how could such an event occur so long after the series of eruptions which occurred during March, April 2010? It may be reasonable to expect due care and attention to avoid travel in an area where eruptions are known to happen… or if you are travelling in these areas you do so knowingly!

The good news is that Aviva now offer a policy which can be extended specifically to insure air space closure and associated events at a cost of £15 per annum. This insurance has not been made available to all their travel policies …. It is only available in connection with their annual travel policies.

To date and to the best of our knowledge other specialist insurers are not providing similar cover.