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XL passengers not covered by insurance

26 January 2009 08:08

XL passengers not covered by insurance

Passengers who booked holidays through bankrupt travel company XL are unlikely to receive insurance pay-outs.

The news will pile further misery on the thousands of UK holiday-makers who have not only missed out on their holiday, but now face the prospect of receiving no compensation.

As business failures are not covered by standard insurance premiums, many people could end up out-of-pocket as a result.

A spokesperson from the Association of British Insurers (ABI) told the Guardian newspaper that standard travel insurance policies only covered medical expenses or lost or stolen baggage.

The ABI said that people looking for fully comprehensive holiday cover would have to seek it through a specialist travel agent or insurer.

Along with XL, the airliner Zoom also went into administration last month, leaving passengers stranded both in the UK and US.

It is expected that with soaring fuel prices, other airliners could go bankrupt within the next few months, putting UK travellers not covered by adequate travel insurance at risk.ADNFCR-1320-ID-18777932-ADNFCR