Daily Insurance Industry News
Daily Insurance Industry News
Wednesday 18th of July 2018
December 18, 2009

Travellers urged to ensure they have airline failure cover

by Richard Kilner

Story link: Travellers urged to ensure they have airline failure cover

Global leader in travel financial failure International Passenger Protection Limited has stated that the recent Globespan collapse has reaffirmedhow important it is that travellers have appropriate travel insurance.

Last month travel protection site ProtectMyHoliday.com warned that there would be airline failures during the Christmas period, a warning which has unfortunately proven accurate.

Three out of four Globespan customers booked through the firm’s website, and thus fell outside the ATOL scheme which provides protection for package bookings.

Less than half of overseas travel booked in the UK are now reckoned to be sold as part of a package, meaning more travellers must rely upon insurance firms and their Financial Failure cover on retail travel insurance.

Any losses incurred before the holiday actually starts can be covered, enabling the claims to be used to fund alternative arrangements.

Since the financial crisis began around 60 airlines have collapsed.

Jennifer Thomas, of Direct Line Travel Insurance, has said that customers are not covered by the ATOL or ABTA schemes if they book direct, making it even more important for travellers to ensure they have the necessary coverage in their travel insurance.


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