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Travel insurance confusion clouds flight chaos Which?

Consumer rights may be infringed as some travel insurers and airlines hide behind a smoke screen when it comes to dealing with claims for compensation caused by ash erupting from the Icelandic volcano. While many insurers have stated that they will pay out for flight cancellations, some will not.

Some travel insurers have stated that their policies do not cover cancellations caused by natural disasters such as volcanic eruptions, or cap the total amount their provider will pay out, meaning thousands of travellers could lose out if they are forced to stay abroad for a prolonged period. 

Exclusions

A number of major insurers, including Aviva, Direct Line, Fortis, HSBC, and NatWest, have confirmed that they will reimburse travellers. However Aviva maintains that its decision to pay out is a 'goodwill gesture' as claims relating to volcanic eruptions are not usually covered. Direct Line is not alone in stating that its policies do not include a natural disasters exclusion, which is why it will pay out. Others, including Virgin Money, are classing the ongoing crisis 'a natural disaster', which is excluded from cover. 

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