Travel insurance covering Volcanic Ash Clouds, Wildcat Strikes and more besides!

Publication date: 02^th December 2011

Subjects: volcanic, ash, cloud, ba, lava, strike, travel insurance, cancellation, delay

2nd December 2011 – Update on Insurers positions on cover for current volcanic situations
Read all policies very carefully to ensure they meet your needs.

The insurers below cover volcanic ash disruption although most exclude 'known events'. The insurer who will provide cover for the Puyehue-Cordon Caulle volcano in Chile (which has been causing on and off disruption to travel in South America, Australia and New Zealand since June 2011) is Direct Travel who will cover further disruption from a known event (if travel is within seven days of the date of policy purchase, or seven days of booking the holiday (whichever's later) benefits under this section will be reduced by 75%). Understandably no cover is provided if, on the date of purchase of the policy, your departure airport has already been closed or your flight has already been grounded.

Although there is speculation that the Katya volcano is in imminent danger of erupting New Icelandic volcano eruption could have global impact - BBC News 2nd December 2011 at the time of writing it is not classed as a known event by any of the insurers below – do check the companies websites and contact them directly should any eruption occur.

Following the three major volcanic eruptions since Spring 2010 there has been a surge of interest in travel insurance policies which will cover ash clouds, strikes and port or airport closures generally. Given the fact that such events appear to occuring more regularly, and that they can last for a considerable period (the Chilian volcano has been erupting for over six months) many are ensuring that their insurance policy covers them for such eventualities, especially as they arrive so quickly, and do not allow travellers options to cover themselves once they are known about.

We have tracked the approach taken by many insurers over the past 18 months, and a clear trend is seen - those companies who were sympathetic in the past as stepping backwards - whilst others are formulating specific policies to protect travellers from the disruption such events cause. These new policies and optional 'add ons' will cover previously unthought of risks including natural disasters, volcanic ash clouds, wildcat strikes, flu pandemics and more besides - as long of course you 'add them on'

Travel insurance policies almost always offer cancellation costs in case your departure is delayed for a long period (although some exclude Volcanic Ash incidents or enforced closure of airspace by governments) - but now a few also offer add on policies offering more comprehensive cover before you leave home and additional assistance if you are stuck overseas (covering, say, the cost of additional accommodation or alternative means of getting home). Companies such as Columbus Direct, Direct Travel, Aviva and Insure With Ease have developed these policies, all with slightly different levels of cover or points of difference - so read on!

Summary of Cover

Company	Cost	Delay Benefit after 12 hours	Abandonment benefit after 24 hours	Other situations covered
Columbus Direct	Volcanic Ash Cover costs £8 on Single Trip policies, and £12.00 on Annual policies (can only be bought with 'Silver' policies). Volcanic Ash Cover and Emergency Travel Cover costs £13.50 on single trip policies and £20 on Annual policies (can only be bought with 'Gold' policies).			Volcanic Ash Cover includes cover for Travel Delay, Abandonment and Missed Departure as a result of volcanic ash, up to the limit stated on your policy schedule. If Volcanic Ash Cover is not taken then no claims arising as a result of volcanic ash will be eligible. Volcanic Ash Cover and Emergency Travel Cover includes both Volcanic Ash Cover as above and an Emergency Travel Upgrade which provides additional cover in the event of unforeseen circumstances preventing your return home for at least 24 hours from your booked return journey. Pays up to to £1,500 for alternative accommodation or alternative emergency reasonable transport expenses. Total payable for all insured persons under this policy is £4,000. Click for details of special offers No cover once a current incident is classed as a known event.
Direct Travel	£10.40 for £6000 of cover for single trip policies, and £20.40 for annual policies. Price applies to each adult in the party			Provides benefits for unrecoverable costs for natural disasters (not strikes), including accommodation and alternative travel. Will cover current situations as long as your departure is not in the next seven days, and still offers reduced benefits if it is.
Insure With Ease	£4 per single trip policy, and £6 per annual policy			Provides cover for non-refundable, unused travel, accommodation and holiday services if the transport that you are booked on eg. flight, is cancelled due to a natural catastrophe, preventing you from using those holiday services. Max benefit £1500 per policyholder. Also offers covers for travel delay and additional accommodation or alternative transport for on outward and return leg (subject to policy conditions and limits). No cover once a current incident is classed as a known event
Aviva	Airspace Closure Cover costs Approx. £5 per trip or £10 per annual policy (Normally cheaper if bought online)			Airspace Closure Cover Provides up to £5,000 extended cancellation cover if, when due to depart from the UK, you can't because airspace is closed for more than 24 hours or an airport or port that you are scheduled to travel from or through is closed for more than 24 hours from time of your scheduled departure. Also if you are unable to return home on your scheduled return date for the same reasons, a benefit is paid for each 24 hours you can't return, or reasonable travel expenses, if after 24 hours, you unavoidably have to make immediate alternative travel arrangements to return home. Travel Disruption Cover A further add on from Aviva offer providing extended cancellation and abandonment cover for a range of events including, amongst others, strikes and snowfall, pandemics and food poisoning in your holiday accommodation. No cover once a current incident is classed as a known event or where you knew, at the time of buying the insurance or booking the trip (whichever is later), that you would be unable to travel.

Policies which provide 'extra cover' options

Columbus Travel

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To try to clear up any confusion as to what travel insurance covers policyholders for, Columbus Direct have added two options. One for Silver policyholders extends their usual Travel Delay, Abandonment and Missed Departure to cover Volcanic Ash incidents and the other for Gold policyholders offers both this cover and an “Emergency Travel Upgrade” which helps passengers pay for alternative ways home or emergency accommodation in case of being stranded overseas. The maximum claim per policy is £4,000 of expense.

Will cover pre existing medical conditions.

See the Columbus Direct website for full information.

Direct Travel

Direct Travel have brought in an add on policy which offers extra cover in the case of a Natural Disaster. This policy covers cancellations, alternative means to get home, extra costs such as accommodation, car parking and kennel fees. Do note though that this policy does not come into force for strike action. Pre-existing medical conditions can now be covered.

Direct Travel also have a very clear policy as to when a natural disaster becomes a known event - broadly speaking reduced benefits apply for the first seven days after a policy is bought, but then full benefits apply - as always read their terms and conditions (there is also a restriction if you book a last minute holiday and are due to depart within seven days when a situation is 'live'). Its easy to check this is current as by calling them - you will hear a recorded message confirming this as current - although then buying online will be probably be a lot quicker than waiting for an operator!

Single Trip policyholders - if at the time of purchasing this insurance you are due to depart on your trip within the next 7 days, and a natural catastrophe has occurred which may directly result in a claim under this insurance, the amounts in the table of benefits will be reduced by 75%.

Annual Multi-Trip policyholders - if at the time of purchasing this insurance or booking your trip, whichever is the later, you are due to depart on your trip within the next 7 days, and a natural catastrophe has occurred which may directly result in a claim under this insurance, the amounts in the table of benefits will be reduced by 75%.

Boots Travel Insurance have a very similar policy to Direct Travel policy, it's underwritten by the same underwriters, and claims are handled by the same firm. There are some minor differences between the policies but generally we find Direct Travel policies to be around 30% - 40% cheaper than Boots hence our focus on them.

Full information can be found on the Direct Travel website.

Insure With Ease

Insure with Ease offer a range of very cost effective travel insurance policies aimed at travellers under the age of 75, who have no medical issues requiring cover. Their Natural Disaster Cover which is an bolt on to their standard policies is only £4 for a single trip short haul policy (£6 for an annual policy) and £6 / £10 for long haul) is not as comprehensive as some, but is a good basic policy at a great price.

Visit the Insure With Ease website for more information.

AVIVA

Aviva have an upgrade policy, costing around £5 per single trip policy for each traveller, or £10 per traveller on annual policies (although for families they will only charge for a maximum of two children) that will cover 'closures of airports or ports' - for any reason from terrorism to the actions of a volcano, hurricane or pandemic. See our feature more information can be found in our feature on Aviva Travel - Volcanic Ash policies. Aviva cover those up to 79 years old, but don't cover pre existing medical conditions.

Aviva sell the upgrade online - click to say that you want their closure of port or airspace option - which means you also get a 10% online discount.

Provides additional cover for range of events that might cause disruption to your travel plans such as strikes (outbound leg only) snowfall, Foreign Office advice, food poisoning and pandemics. Cover is provided for:-

Extended Cancellation cover (£5,000)
Extended Abandonment cover (£5,000)
Missed Connections outside of the UK (£1,000)
Delay outside the UK (£25 every 12 hours)

Whilst strikes are not covered on the home bound leg the Aviva policy will provide its standard cover in this respect. If you want to have the option of having alternatives for a homeward leg if a strike is called by airline staff consider the Columbus policy.

Visit the Aviva website for full details.

So which policy is best for you? It really depends on the level of cover you want to take - Cancellation only, Cancellation and Get You Home / Extra Accommodation costs in case of a Natural Disaster, or whether you want the latter with Strike cover included too. Its really up to you!

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