Eurozone Crisis Sparks Fears of Insolvency, Strikes: Travel Insurance Can Help
With austerity measures continuing to hit across the Eurozone particularly in Greece, Spain and Portugal the risk that your summer holiday could be affected by strike action or insolvency is increasing.
Read on to find out how buying the right travel insurance cover at the right time can help if your holiday is affected by strike or insolvency.
Travel insurance tip: No matter where you are going on holiday this summer always remember to declare any pre-existing medical conditions when you buy travel insurance.
Travel Insurance Can Protect your Holiday Against Insolvency
Consumer watchdog Which? is urging holidaymakers heading abroad this summer to ensure that their money is protected by either booking an ATOL protected package holiday or adding insolvency cover otherwise known as scheduled airline failure or end supplier failure to their travel insurance.
One way to protect your holiday from the risk of insolvency is to book a package or flight plus holiday from an ATOL bonded tour operator who then have a duty to look after you in the event of insolvency.
Another way to protect the money you’ve invested in your holiday is to make sure that your travel insurance includes cover for Scheduled Airline Failure also known as End Supplier Failure which will provide the travel insurance cover you need in the event of the insolvency of an airline or other holiday supplier.
Travel insurance with insolvency cover is particularly important for travellers who prefer to book their holiday independently or direct with an airline and therefore have no financial protection under the ATOL scheme.
If one of your holiday suppliers, such as an airline or hotel, becomes insolvent, having Scheduled Airline Failure or End Supplier Failure included in your travel insurance will allow you to make a claim to re-coup the cost of that element of your holiday, therefore enabling you to book alternative flights or accommodation etc.
Travel insurance cover for the increased risk of strikes
Another consequence of the hard times that people in Greece, Spain, Portugal and other Eurozone countries are experiencing at the moment is the increased risk of strikes and industrial action impacting on public services, including air travel.
There are currently on-going strikes in Spain and Portugal which are having an impact on flights going in to and out of those countries.
Most travel insurance policies provide cover if your flight is delayed by strike action under the travel delay section of the policy. The travel delay section of a travel insurance policy is designed to pay you a fixed benefit for every 12 or 24 hours that you are delayed in order to help you cope with additional expenses such as food and drink whilst you are waiting at the airport.
After a long delay your travel insurance should also give you the option to ‘abandon’ your holiday and make a claim to recoup the cost, enabling you to book an alternative holiday at another time.
Remember, you will only be covered for travel delay due to strike action if you booked your holiday and bought your travel insurance before strike dates were announced, so it pays to buy travel insurance as soon as you’ve booked your holiday.
Keep up to date on the situation in Greece, Spain and other Eurozone Countries
With any holiday destination it’s useful to check the latest travel advice from the Foreign and Commonwealth Office (FCO) before you travel.
The FCO publish continually updated travel advice country, including information on any planned strikes or occurrences which could affect British Nationals abroad.