Insurance policy add-on will cover air travellers for cancelled flights and closed airspace due to volcanic ash or terrorism Holidaymakers can insure their trips against the risk of cancellation caused by volcanic ash from the beginning of June following the launch of an optional add-on to standard travel insurance policies. From 1 June, customers who are buying or renewing annual or single-trip policies from Aviva will be able to buy additional travel cover to protect against cancellation caused by airspace closure, or by an airport or port being closed for more than 24 hours from the date and time of scheduled departure. Existing Aviva travel policyholders can buy the add-on during June only (although the cover will extend until the end of the policy) by calling 0800 051 3606 or visiting Aviva’s website , while new customers can buy it anytime. The additional policy – which costs £5 per insured person for a single trip or £10 per person for annual insurance – provides cover of up to £5,000 per insured person in the event of cancellation for travel and accommodation costs (including deposits) that policyholders cannot recover from their travel provider. If policyholders cannot return home to the UK because airspace is closed or because an airport or port they are scheduled or rescheduled to travel from or through is closed, the policy offers two options. The first is to pay out £100 per insured person for every 24 hours that the policyholder is unable to return home. This is irrespective of any help given by the travel provider or airline, but is subject to a maximum of £1,500. The second is to pay out up to £1,000 per insured person for any “necessary and reasonable” travel expenses where after 24 hours you unavoidably have to make immediate alternative arrangements to get home, which your holiday provider cannot arrange. It will also pay for emergency medical supplies required to prevent a deterioration or exacerbation of an existing condition. With warnings that volcanic activity is set to continue for the rest of the summer – and possibly for years – this policy add-on is likely to prove extremely popular. However the 1 June launch date means most people going on holiday during the next half-term – starting this Saturday – will not be able to buy the cover in time. A spokesman denied the insurer was simply trying to avoid the cost of payouts by delaying the launch until mid-break: “We’ve moved as fast as we can to get staff in place to answer phone calls, and there is an IT element to writing the policies, which takes time.” Aviva is the first insurer to underwrite the risk of airspace being closed because of volcanic ash, although it is among several insurers that have made ex-gratia payments to help travellers stranded abroad. Aviva says it will continue making these payments – £250 per insured person – until 1 July. Jerry Finch, travel manager at Aviva, says: “The key benefit normally associated with a standard travel policy has historically been medical emergency cover and this still remains the top reason for any claim. “However, we appreciate the need to provide protection for additional risks that have not been previously covered by insurance.

Original Source Aviva launches volcanic ash insurance