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Creditfix LB 03-2017

Check Your Travel Insurance Small Print

Following the collapse of Monarch Airlines that left many travellers either stranded or out of pocket for future flights paid for, it is worth checking your travel insurance small print to see if you would be covered.

Many travel insurance policies will cover ‘scheduled airline failure’ but certainly not all.

Travel insurance policies offered via paid-for bank accounts are now very popular, but many of these do not provide cover if the airline was to fail.

NatWest and Royal Bank of Scotland policies don?t offer scheduled airline failure cover, and neither do policies offered by HSBC for its Premier account customers, though it said it would ‘consider’ claims following an airline collapse.

Another of the UK?s biggest insurers, Axa, does not provide this cover on either its own annual or single-trip policies.

Axa also underwrites all the policies offered by the Lloyds Banking Group, and these again do not offer scheduled airline failure cover, though the bank?s ‘travel disruption’ cover would pay up to ?5,000 per person in the event that the insured individual can?t reclaim the extra costs from another source.

Nationwide Flex and FlexPlus accounts do include scheduled airline failure cover in their travel insurance.

Of other insurance companies, Direct Line and Saga include the cover. However, Tesco, Admiral and LV only include it in their premium policies. InsureandGo include the cover in all travel insurance policies they sell

Overall, only around half of UK travel insurance policies offer the cover according to insurance analysts Defaqto.

Defaqto gives all insurance products a star rating, and has stated that 49 per cent of annual travel policies include scheduled airline failure. However, they have not confirmed which larger insurers do not, so there is no guarantee that a defaqto 5-star rating would ensure that the cover is included.

It is worth checking that your annual travel insurance policy includes scheduled airline failure, as it is generally thought that other budget airlines could follow Monarch in the not too distant future.

Always booking flights with a credit card offers extra protection, as the card provider is jointly liable to provide the service if over ?100. However, you must ensure that you book directly with the airline and not through an agent or booking website.

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