Volcano 'to add to insurance policies'
Personal insurance
23rd April 2010
Travel insurance policies are likely to be altered in the wake of flights being grounded because of a volcanic eruption in Iceland.
According to Mott MacDonald director of aviation strategy Laurence Price, the small print of cover documents may well be added to because of the disruption caused by the natural disaster.
Eyjafjalljokull in the south of the country pumped clouds of dust into the air posing a potential danger to planes and causing airports across Europe to close.
"Clearly when a regulatory authority says 'you are not flying' – then how is that down to the airline?," Mr MacDonald asked, adding: "So it is the regulator then the government who have made that decision."
He suggested UK insurance policy holders may be impacted by the situations and they could see more exemptions added that need to be taken into account.
Plumes of ash from the Icelandic volcano reached more than 10,000ft, with weather patterns blowing them into Europe preventing flights from taking off and stranding thousands of travellers.
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