Most travel policies will leave policyholders uncovered
Only one in six travel insurance policies provide cover for the cost of airline failure, either as standard, or as an optional extra, Defaqto has warned after Scottish airline Flyglobespan collapsed.
Some well-known travel insurers that do cover scheduled airline failure include Direct Line, Direct Travel, the Post Office, the AA, SAGA and Sainsbury's Finance, Defaqto said.
BIBA policy comprehensive
The British Insurance Brokers’ Association (BIBA) confirmed that BIBA protect policies, underwritten by Tokio Marine and purchased from a BIBA broker, cover both company collapses and strikes by airline staff.
The policies “will cover travellers providing the trip and insurance were purchased before the strike ballot was announced or, in the event of financial collapse before the financial failure was in the public domain,” BIBA said.
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