Holidaymakers slate insurance firms over volcanic disruption

Thousands of UK holidaymakers and business travellers have had their plans disrupted following the volcanic ash cloud that has swept across from Iceland, affecting both the UK and neighbouring European destinations. For the first time British air space was effectively closed down due to the risk of damage to plane engines.

However, this left many people stranded in airports and unable to travel, and for many a major concern was being able to get their money back. Whilst airlines have been offering refunds to those that cannot travel because of the natural disaster, there is no compensation available for those that booked DIY holidays in terms of accommodation costs and car hire.

DIY holidaymakers could now end up getting a very raw deal, as although they will get their flight money back they could stand to lose a fortune in accommodation and car hire costs, as well as other related costs such as any excursions that they may have pre-booked.

Many are now turning on their insurance firms, accusing them of hiding behind the defence that the volcano eruption was an ‘act of God’ in order to avoid having to pay compensation to those that have been unable to travel. It is thought that personal losses from the disaster could amount to £20 million, and this is something that insurers will naturally want to avoid paying if they can.

One holidaymaker who was stranded at the airport because of the volcanic disruption said that her insurance company had already said that they would not be paying for her financial losses.

The customer said: ‘We rang our insurance company and they said it was an “act of God”, so they won’t cover us – we’re stuffed.’

Tags: Insurance, insurance firms, travel, disaster, holiday

Safe packing ahead of holiday

The holiday season is fast approaching and many of us will soon be packing our bags and heading off to warmer climates.

However, travellers are being warned that they must take out insurance before setting off or potentially face a disaster.

As more and more people can afford to fly and more flights are taking to the air than ever before, Swiftcover.com says that the chances of an airline loosing your luggage have increased.

Figures from the insurer show that around 22 per cent of UK holidaymakers have arrived at their destination only to find that their luggage has not made it.

Over half of these people have had to wait over 24 hours for their bags to be returned, while six per cent did not see their possessions again during the trip.

Travellers are being warned that they should pack valuables such as travellers cheques, cash and jewellery in their hand luggage as these items are often not covered if they are checked into the hold.

“As long as you have adequate travel insurance, losing your suitcase should not hit you in the pocket, but, for the majority of people, it’s often the sentimental value of personal belongings and the lost time on holiday trying to locate your bags that cannot be replaced,” said Craig Staniland from Swiftcover.com.

Tags: cash, Business and Economy, Jewellery, season, UK holidaymakers, cent, Hand luggage

Insurers expect surge in DIY claims

The May Day Bank Holiday is expected to have led to a surge in insurance claims as the UK went DIY crazy.

Bank Holidays are traditionally a time when homeowners decide to carry out some work on their house and this one has been no different.

Lloyds TSB Insurance says that it is expecting the number of calls it receives to surge by around 60 per cent in the coming days.

The firm has revealed that it saw calls rise by 56 per cent following the 2006 May Day Bank Holiday and it predicts that accidental damage claims will also rise.

“May Day Bank Holiday can spell disaster for DIYers,” explained Phil Loney, managing director at Lloyds TSB Insurance.

“We’re urging anyone who’s getting out a paintbrush, drill or stepladder to be extremely careful. Unfortunately, sometimes accidents do happen and it’s then that having the right insurance cover can prove invaluable.”

The firm says that their have been some quite interesting claims made in recent years. Among them is a toddler who wanted to follow his dad’s DIY lead and painted a newly-laid carpet.

One man accidentally drilled through a gas pipe and caused a leak, while another crashed through his ceiling as he tried to repair some floorboards.

Tags: damage, Insurance, disaster, accidental damage claims, toddler, director, Lloyds TSB Insurance, time