Britain’s greatest insurer is to impose an ‘ash tax’ on travellers who fear their holidays may be cancelled.
Just a week prior to thousands of families jet off on breaks during the college half-term, Aviva has become the very first firm to impose the levy.
Other big insurance policy companies are set to follow suit.
The new add-on policy could cost a typical family an additional £40.
A lot more than 150,000 Britons had been stranded overseas in April following UK and several European airports had been closed for six consecutive days following eruptions from a volcano in Iceland and the dense plume of ash cloud that spread as a result.
Numerous travellers incurred additional accommodation and transport bills totalling hundreds of pounds, however they returned house to discover that insurers and airlines refused to spend back costs.
Rochelle Turner, head of study for Which? Travel, said: ‘Travel insurers have not come out of this situation really well, individuals really feel allow down by them. From now on vacationers that want an assurance that their holiday is going to be protected from the disruption are likely to have to pay additional for that.’
After the very first closure of airports a handful provided to produce a goodwill gesture to stranded travellers. Many have since made a u-turn on this policy.
Anybody that has booked a holiday since April 15 may be told they will certainly not be be capable to claim for delays or cancellations. This is simply because insurers now deem the ash cloud a ‘known event’.
Consequently vacationers book holidays at their personal risk. And from July 1 Aviva has mentioned it will not make any a lot more goodwill obligations to vacationers.
Previously this week airports throughout Britain had been closed once again since the volcanic ash cloud once once again encroached on airspace.
Lee Griffin, business development director at monetary website GoCompare.com, said: ‘Consumers may think about the additional cost to become somewhat of an ash tax on this year’s vacation that is nicely worth spending for the extra peace of mind it brings.
‘Travel insurers have been reviewing their wordings and others might nicely join Aviva in bringing out similar add on policies to cater for this unusual scenario.’
The Aviva policy was revealed just 24 several hours after new rules proposed tougher tests on regardless of whether flights might be grounded by ash.
The insurance policy, which is valid from June 1, expenses £5 additional per person on a single trip policy, and £10 every person for an yearly trip coverage.
It’ll pay out up to £5,000 every person for journey and accommodation if a journey is cancelled simply because an airport is closed for 24 hours from the time of departure.
Individuals stranded overseas will be able to state up to £100 a day to get a hotel room and expenditures - up to a total of £1,500. Or they are able to state £1,000 for additional journey expenses.
A spokesman for Aviva mentioned: ‘People can purchase add on cover for golf equipment, or for other sports, now we are providing them cover for that ash cloud. You may not want it if you’re just heading on holiday within the UK or somewhere by ferry but certainly if you’re flying you may think it had been something that’s helpful if they were flying and had been worried their holiday might be disrupted.’
Posted on Friday, 21 May 2010
Britain’s biggest insurer imposes ‘ash tax’ on travellers
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