Along with Ryanair’s stunt of massive cancellation of their flights, it made people consider getting a travel insurance. This way, traveler’s rights will be defended and they will be compensated in case of delays or cancelled flights.
And it doesn’t stop there. Getting a travel insurance will also cover lost or stolen bags, medical care in case of emergencies or getting ill on that trip and other things that will either delay or stop our trip.
But the most important question is will the travel insurance cover our costs if the airline goes bust?
Is Airline Failure Covered By the Travel Insurance Policies
Most of the travel insurance policies do not cover it. This is because the airline owes so much money that it collapses. You guessed it, it won’t have the money to pay back the tickets you and the rest of the travelers bought.
Another reason for which the majority of travel insurance policies don’t cover airline failure is because the risk it quite small. This is what Brian Brown, the Head of Insight at Defaqto stated: ‘Airline failure is not covered as standard on two-fifths of travel insurance policies’.
If you are one of those who bought a flight with their credit card, then you can get a refund from the credit card company. For that, you will have to contact them. You can also claim the money under your travel insurance policy – if you have opted for such a cover.
Brian Brown also said that you ‘will be fully protected through the ATOL scheme and should not lose out’ if you booked a package holiday with Monarch, but if you haven’t yet travelled and got the flights booked directly, it’s a smaller chance of getting back your money.
With the Monarch failing recently, people should protect their holidays by insuring their flights immediately after booking them. The best way of insuring your travels is to buy travel insurance more than a week before flying, to get cancellation covered.
Book a Plight and Pay For It With a Credit Card – Directly to the Airline
As mentioned above, the safest way of flying and making sure you get the service you paid for is to use the credit card. This way, the card provider will also be liable for the service you get. When the airline cannot provide a flight, the bank has to step in. As long as you book the flight and pay the ticket directly to the airline with the credit card, you should be on the safe side.
Source article: https://www.buddyloans.com/news/contracts/claiming-travel-insurance-due-airlines-insolvency-112751/
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