Daily Insurance Industry News
Daily Insurance Industry News
Monday 24th of September 2018
June 28, 2010

Airline failure a particular threat to independent travellers

by Gill Montia

Story link: Airline failure a particular threat to independent travellers

A recent report from Defaqto suggests independent holidaymakers should review their travel insurance policies to see whether they cover the failure of scheduled airlines.

According to the independent financial researcher, only 20% of insurance policies provide this feature and while many offer cover of £1,500 or more, limits may not be sufficient when taking into account pre-booked and paid for items such as hotel accommodation, excursion tickets and car hire.

Defaqto also encourages consumers to consider the following when booking holidays:

Travelling with an ATOL or ABTA bonded organisation offers more protection than independent arrangements, as the problems of airline failures and the volcanic ash cloud have highlighted.

Travellers should use their credit cards when booking as using a credit card on purchases of £100 to £30,000 provides some statutory protection if the company or supplier goes bust, or if there is a problem with the goods or services.

The firm’s head of research, Brian Brown, comments: “Not everyone has the same needs for their travel insurance arrangements so it is important to take some time to review features carefully.”

Defaqto has also recently been calling into question whether insurance policy definitions of “family” are up to date because many travel insurers will only insure children and step-children who live with the policyholder, while children who normally live with an ex-partner may be excluded.


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