Travel policy offers airline failure payout

Travel policy offers airline failure payout

Independent travellers booking their accommodation and transport separately can now buy a £4 insurance policy that will pay up to £5,000 in the event one of their travel firms goes bust.

The internet travel insurer InsureFor this week launched a standalone insurance policy offering supplier failure cover.

It is promising to provide an alternative holiday or a replacement journey in the event of major travel disruption or business failure.

The recent failures of airline Zoom and the XL travel company have caused problems for consumers not booking through travel agents who are not covered by the Civil Aviation Authority's Atol scheme.

Most travel insurance policies don't currently offer cover for company collapse - as several thousand customers recently found to their cost.

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InsureFor's annual worldwide policy costs £8 a person, with children paying the same rate. Single-trip cover on journeys of any length cost just £4 a person.

Buyers can claim up to £5,000 - minus an excess of £50 - in the event any supplier can't provide the services for which the consumer has paid.

If your flight, ferry, coach or train is cancelled and no alternative is provided within 12 hours you can claim on the policy, which is being underwritten by Europ Assistance.

With around 23 airlines having gone bust already this year - and another 30 predicted to follow suit - the cover looks like a sound investment for independent travellers.

The policy also covers rail travel, hotels, car hire - any holiday service supplier that goes bust either before or during a traveller's trip.

Launching the new product, InsureFor's managing director, Antony Martin, said XL passengers turning up at airports to be told they had lost their flight would have been able to book another trip and claim the costs back from the insurer, had they had this cover.

Claimants have to obtain "written confirmation" from the liquidator that the third-party provider has become insolvent.

In the event of long delay the same is true - a letter is required from the carrier stating the period and reason for cancellation.

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