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What happened to the ash?
The ash cloud that disrupted flights into and out of Europe for a week appears to have faded rapidly into the recesses of our minds as journalists turn their attention to the election campaign trail.
The ash cloud that disrupted flights into and out of Europe for a week appears to have faded rapidly into the recesses of our minds as journalists turn their attention to the election campaign trail.
For some travellers though, the story will linger for quite some time. While many are only now able to return home and others face even longer delays, the repercussions for people who have had to pay to subsist for many days after the intended end of their holidays or for staff on business trips, or for elaborate return journey’s over land, often through credit cards and overdrafts the cost may well affect their day to day lives for months and even years to come.
Insurers are taking very different stances over whether to pay out on claims that are technically not covered by what used to be termed an ‘act of God’. NW Brown Insurance Brokers have been pleased to receive communications from various insurers, like Chartis and Hiscox, indicating that they will pay claims on certain types of policies that result from cancelled flights due to the volcanic ash.
Chartis has decided to pay travel claims under its Lifeline Plus and RapidQuote policies and has said ‘In normal circumstances, travel claims made for cancellation, curtailment, disruption, replacement and delay are excluded if an insured person fails to check-in according to their itinerary, or because their aircraft, ship or train is withdrawn from service on the orders or recommendation of transport or similar authorities (exclusions 9 a) and 9 b), Section B4 of Lifeline Plus and RapidQuote policies). On this occasion Chartis is setting aside these exclusions for claims caused by volcanic ash that cannot be recovered elsewhere.
‘These extensions to cover apply to all claims from business travellers on trips booked prior to 14th April 2010 and insured under Lifeline Plus and RapidQuote policies purchased before that date.’
Steve Langan, Managing Director, Hiscox UK has written to commercial brokers and said, with regards clients who have a valid travel policy, that Hiscox ‘will consider all reasonable extra travel and accommodation expenses for clients to return home. … Claims as a result of the volcanic ash cloud are not usually covered by the Hiscox travel insurance policy; however we acknowledge that these are unusual circumstances. Therefore, on this occasion, Hiscox has taken the decision to cover the above costs.’
There is some small upside for those fortunate enough to have cover with insurers who are taking a flexible stance and considering the cases presented to them.
For more information contact NW Brown Insurance Brokers:
Personal Lines: private.insurance@nwbrown.co.uk
Commercial Lines: commercial.insurance@nwbrown.co.uk
Claims: claims@nwbrown.co.uk
Feature Created: 2010-04-30
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