Travel insurance 'protects against airline failure'
31 March 2009 07:40
Holidaymakers booking discounted flights have been urged to take out adequate travel insurance so they are protected in the event of their airline collapsing.
Warning them about the state of the aviation industry, holiday insurance provider Essential Travel predicted that further airline casualties are likely, what with falling passenger numbers and fares squeezing profits hard.
Stuart Bensusan, director of the firm, said that failing airlines could leave holidaymakers without travel insurance cover in financial hot water; stranded in a foreign country with no compensation to fund the flight home.
Urging people to check the smallprint of their policies, he warned: "Most insurers offer cover for chartered airline collapse, but very few cover in the event of scheduled airline failure.
"This is despite the fact scheduled airlines make up the bulk of all flights in and out of British airports."
Last week, jml-insurance.co.uk advised people travelling abroad for Easter to carefully consider whether it is in their interests to take out a single-trip or annual travel insurance policy.
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