Icelandic volcano highlights importance of checking policies
Personal insurance
28th June 2010
The eruption of a volcano in the south of Iceland earlier this year has emphasised the need for consumers to check travel insurance policies carefully before purchasing and to be aware of exactly what provisions are made by such products.
Eyjafjalljokull exploded in April, pumping clouds of ash into the air at more than 10,000 ft and grounding flights at airports across Europe as weather patterns blew them across the continent. For the first time ever all non-essential services were cancelled in the UK and thousands of travellers were left stranded overseas, with many forced to make alternative arrangements under their own steam.
As a result, those without adequate cover were forced to pay out substantial sums until they were booked onto alternative flights once planes were running again or were left out of pocket after taking circuitous routes home.
This then, Giles Insurance Brokers Ltd. advises, is the ideal opportunity to review your travel insurance arrangements and, if necessary, to purchase additional cover if it is found to be wanting in certain areas.
For example, Mott MacDonald director of aviation strategy Laurence Price recently predicted that companies could well add to the small print of documentation following the eruption, potentially impacting upon future levels of protection, with extra exemptions added.
Advice was issued in the wake of the grounded flights by the Association of British Insurers (ABI), which called on passengers to determine whether or not they were covered by natural disasters, as not all airlines provided support beyond replacement flights for those trapped abroad. And the Association of Independent Tour Operators warned that DIY travellers securing cheap flights with budget carriers could find themselves facing additional expenses, as these options offer little financial protection.
Compensation packages in such instances can also vary widely and the Association of Independent Tour Operators explained operators are obliged to "sort everything out" in the event of delays, while carriers are only responsible for journeys themselves in these cases. This, spokeswoman for the organisation Sue Ockwell said, can leave large families facing very steep additional costs if services are grounded.
Susan Young, Group Personal Lines Director of Giles Insurance, recommended those seeking insurance policies in the wake of the volcano and the disruption it has caused seek advice from an experienced broker ahead of their holidays this year, in order to ensure they have the best possible cover to suit their needs - whether this comes in the form of single trip or annual travel.
He/She added: "The Icelandic volcano had a significant impact on the global passenger market and served as a reminder of how vital comprehensive insurance can be when something unforeseen occurs during a trip overseas. In such circumstances, policies and access to specialist helplines can prove invaluable for those in a foreign country."
With sterling strengthening against the euro in recent months, more UK citizens may be making their way to the continent this summer, as the pound will stretch further in other countries. It is the ideal time, then, for consumers to start planning their insurance cover alongside any journeys they may be booking.
