Travel insurance policy providers defended by ABI

Travel insurance policy providers which have withdrawn cover for travellers passing through Terminal 5 have been defended by the insurance industry's representative body.

21/04/2008 16:24:04

Earlier this week some of the UK's leading travel insurance policy providers announced they would no longer be offering cover for customers for vacationers leaving from Terminal 5 after thousands of items of luggage were lost by the airport operator. Among the travel insurance policy providers who confirmed this move were Direct Line and Churchill.

The move has promoted outcry from some passengers and consumer groups. However, according to a spokesperson for the Association of British Insurers, the travel insurance policy providers are under no obligation to provide a travel insurance policy for those affected. She did, though, highlight the fact that many travel insurance policy providers will not be following suit. "Insurance is there to pay for the unexpected, but some companies are taking the position that you can't help which terminal you fly out of and are still offering cover," she said. "Our advice is to check with your travel insurance policy provider."

Among the travel insurance policy providers which are still offering cover despite evidence of a higher risk of baggage loss are Saga, Norwich Union and InsureandGo. Statements released by the companies acknowledged that there was a problem at the terminal, but have been scathing in their criticism of the travel insurance policy providers involved.

InsureandGo's managing director, Perry Wilson, said: "Some insurers are hiding behind the excuse that problems at Terminal 5 are not 'unforeseen' because they have been going on for weeks. That is like saying you're not going to cover someone against being mugged in Johannesburg because crime is so rife there."

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