There have been many impressive accounts of how people have defied all odds to get themselves, their family and friends home at great expense, time and effort following the volcano eruption in Iceland on April 14th. This has thrown the spot light on their travel company or insurer and how well it has or has not looked after them in their moment of need.
This event has shown up some differences as to how these companies have reacted. I set out a brief overview below.
Some insurers, it seems, have viewed it as an act of god, thus ensuring that cover does not extend to this eventuality. Some however have argued that this event was weather related as the ash cloud was blown into our airspace and have therefore provided cover. Some have stuck to mitigating clauses such as exclusion for claims arising from withdrawal of service on the order of the Civil Aviation Authority.
Each policy is therefore very different. We advise you to check the wording carefully or discuss with your broker exactly what is and what isn't covered within their policies.
If you were one of the many who found themselves stuck abroad, various conventions make it the responsibility of the airline or tour operator to look after you and reimburse any additional costs you incur. Only this week, Ryanair backed down from their refusal to reimburse and agreed to be bound by European rules on compensation.
What is going to happen going forward? Who knows if this situation will occur again? We strongly recommend you review your policy and check any limitations. It will almost certainly be the case that the cheaper the policy, the less cover it is likely to provide.
If you are a company that relies on imports and exports, it may be worth reviewing your contingency plans and add this type of event to your claims scenarios.
Huber Dixon Insurance Services Ltd provide a helpful, creative and sincere service that they are excited and passionate about, looking after your Commercial and Personal Insurance needs.
Please contact us for further information on 0845 430 5430 / info@huberdioxn.com
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