Volcanic ash insurance claims to go ahead

| February 2, 2012
Volcanic ash insurance claims to go ahead

Travellers whose flights were disrupted by the Icelandic volcanic eruption in 2010 can now go ahead with insurance claims.

Following the eruption of the EyjafjallajA�kull volcano in April and May 2010, the Financial Ombudsman Service (FOS) ruled that the resulting volcanic ash cloud, which led to airspace being closed, could be considered a “poor weather condition” for insurance purposes.

However insurance provider Europ Assistance launched a legal challenge to the ombudsman’s ruling and the claims of 300 of its customers were put on hold.

The challenge has now rejected by the High Court and Europ Assistance has confirmed that it will handle complaints in line with the FOS’s ruling and will not pursue any further legal action.

The volcanic eruptions led to the disruption of around 100,000 flights and 10 million passenger journeys.

In related news, a report by Money Mail suggests that insurance companies are trying to recoup the losses they incurred as a result of recent events such as the volcanic eruptions and are therefore pushing up the price of policies.

The report suggests that this is leading to people over the age of 65 paying substantially more for their travel insurance than younger travellers.

Some High Street insurance companies are charging older people as much as A?361 for an annual travel policy that would cost a younger person A?163.

Michelle Mitchell, charity director of Age UK, said: a�?These figures confirm our worst fears that older people will be forced to risk travelling without protection or forgo holidays abroad altogether because they cana��t afford insurance.a��

A survey carried out by eDigital Research on behalf of Asda Financial Services found that a third of people in the UK do not have travel insurance in place and over 10 per cent travel abroad without taking out insurance.

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