AA Travel Insurance reneges on volcano coverage promise

Thursday, 29th April 2010

Hundreds of holidaymakers could end up paying the painful cost of holiday delays caused by the ash cloud. AA Travel Insurance initially said claims from travellers caught up in the air-travel chaos would be honoured.

On the first day of flight cancellations, the insurer was quite explicit in its announcement. In reference to the costs of those who had missed flights, it said customers could expect to be compensated.

Safe in the knowledge that the cost of things like hotel bookings and car hire would be covered, many holidaymakers relaxed.

Nearly two weeks later, however, the insurer has retracted its initial assurance. It says its underwriters refuse to continue with the cover. As a result, claims are being rejected by deeming the volcanic ash as a policy exclusion.

A small number of claimants could be okay. AA Travel Insurance has said it will still consider claims from those who inquired before it withdrew the cover.

It’s not all bad news for insurance policyholders, however. Some insurers have said they will honour claims arising from the ash cloud.

Those covered by HSBC group and Biba Protect, from the British Insurance Brokers Association, should expect to see some or all of their costs reimbursed.

Policyholders should contact their insurance brokers or their insurers for advice on how to claim.

← Thousands of UK travellers could be stranded until May
→ Rise in ‘staycations’ fails to save UK hotel biz
↑ April 2010 news index

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