Volcanic ash causes travel insurance commotion

Fri, 16 Apr 2010

Travellers affected by cancellations due to volcanic ash may not see travel insurance claims paid, it has transpired. The Association of British Insurers (ABI) is consulting with insurance companies to establish the industry's position and say that the rarity of the situation would mean that many insurers could have differing viewpoints.

Steve Williams, head of travel insurance at Confused.com, the price comparison service, said: "The situation is incredibly rare and insurance providers will treat the occurrence in different ways. It is unfortunate that there is not one standard approach when an 'Act of God' happens, this will be referred to as catastrophe cover in policies."

Direct Line has confirmed that customers will be covered for travel delay and missed departure. Jennifer Thomas of Direct Line explained that customers will need to provide written official evidence to support any claims where it is reasonable to request such evidence. In this case, information from official airline websites will be acceptable as evidence.
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