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ASH UPDATE – Travel insurer sees rise in flight cancellation cover

Thursday, 22 April 20103 min read

A leading travel insurer has seen a 150% leap in sales of flight cancellation cover in the wake of the six-day volcanic ash airspace shutdown.

The Blue Insurances and Multitrip.com additional cover does not exclude an ‘Act of God’ clause.
The companies said this provides cover for additional travel and accommodation expenses incurred if an airline cancels a flight after check-in and no alternative is offered after 24 hours.
Blue Insurances’ policies provide cover for missed departure of connecting flights if people are unable to reach their international point of departure, and does not exclude an ‘Act of God’.
There is cover for reasonable additional room-only accommodation and travel expenses in reaching an overseas destination where the airline/transport operator has failed to provide reasonable alternative travel arrangements.
“In the current situation with the ongoing uncertainty of travel arrangements, customers are seeking additional cover where possible to cover them in the event of flight cancellations or disruptions to their future travel plans,” a spokesman said.
Joint managing director Ciaran Mulligan said: “Flight cancellation/disruption cover is an important section of cover which is provided as an optional extra on our policies as there is no exclusion for an ‘Act of God’.
“We would strongly advise anyone booking a holiday to ensure that this particular cover is included with their insurance policy going forward.”
Increased demand is being seen for cruise connection cover for additional travel expenses incurred in reaching a cruise should travellers be unable to make their original embarkation point due to the failure of the airline they are booked to travel on.
Scheduled airline failure cover is also currently covered free of charge on Blue Insurances and Multitrip.com policies.
Additionally, catastrophe cover is provided for being caught in an area where travellers have been advised to evacuate.
by Phil Davies