How to protect yourself if your airline fails - new insurance policy launched
How to protect yourself if your airline fails - new insurance policy launched
A new kind of insurance is now available for British air passengers. The cover has been specifically designed to protect holidaymakers in the event of an airline going bust.
International Passenger Protection (IPP) has launched
protectmyholiday.com, which covers passengers if a carrier fails financially, as happened with
XL Airways.
"This is the first policy of its kind. We want to ensure that all passengers know whether or not they are covered and to give them the option of
protection," IPP's director Paul McLean told The Telegraph.
IPP developed protectmyholiday.com as few standard
holiday insurance packages provide cover for
airline failure. Although passengers who book flights using a credit card or through a travel agent may be protected, many do not fall into this category.
In order to benefit from
credit card protection schemes, tickets need to cost more than £100. In such cases, passengers should contact their credit card company for a refund. However, this may be subject to the company's own terms and conditions.
Anyone who isn't protected under any of the above schemes is considered an 'unsecured creditor'. To try and get their money back passengers will need to contact the
Insolvency Service through insolvency.gov.uk.
Other insurance providers such as Direct Travel Insurance and Preferential are now considering adding
scheduled airline failure cover to their policies, according to the paper.
This story was brought to you by holiday
lettings.co.uk, the UK's No.1 holiday home website.
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