The ash cloud may be long gone, but confusion lingers over travel insurance

Ash from the recent volcanic eruptions in Iceland not only caused widespread chaos and confusion for businesses, travellers and holiday makers – it also caused major confusion over what is and is not covered by travel insurance policies, and highlighted the wide variations that exist.

Holiday plans were ruined, flights were grounded and passengers were stranded all over the globe. As well as the disruption to individuals, businesses trade and the economy suffered severely. Many airlines refunded or rearranged flights, some offered stranded passengers hotel rooms and food, while other were forced to bear the cost of hotel rooms and car hire. Many claims still remain to be settled.

Customers were advised to check the small print of their travel insurance policies to see what their individual policies covered. Perhaps not surprisingly, it emerged that cheaper insurance deals tended to have less cover and so didnt pay out on certain losses, such as cancelled car hire. Others said they would treat the incident as a case of ‘bad weather’. They could consider a claim as a delay that led to the abandonment of a trip.

The event also highlighted the importance of buying travel insurance as soon as you book your holiday or flight, as some people tried to book their insurance after the latest volcano erupted, only to find that they wouldnt be covered because the event had already happened.

Additional cover for delays or cancellations because of a volcanic eruption is now being offered by some companies. Call us on 0113 250 0377 to find out more.