Are you planning to travel to Europe in the next few days? Hopefully you bought your travel insurance before April 16.
Australian travel insurance companies won't accept claims from customers who bought their policy after the Iceland volcano erupted.
Australia's Qantas Airways extended its ban on flights to and from Europe for another 24 hours today, citing uncertainty over the situation after Britain warned of a new ash cloud headed from Iceland.
The announcement comes despite European governments re-opening airspace and confidence from the continent's air traffic control officials that flights would normalise by Thursday.
Two large travel insurance providers, Mondial and Suncorp cover claims for policy holders who have been directly affected by the Icelandic volcano but only for policies issued prior to Friday 16 April 2010.
The Suncorp Group includes AAMI, Vero, Suncorp and GIO, while Mondial Assistance has partners such as Allianz, 1Cover, Virgin Blue, Webjet and Worldcare.
CoverMore has a similar policy.
"Suncorp's travel policies provide clients with cover from unforeseen circumstances arising from natural events, including volcanic eruptions, such as flight cancellation, flight delay and interruptions along with any cancelled hotel accommodation," Suncorp Group's spokesman Mike Sopinski said.
"The level and extend provided to travellers does vary from policy to policy and among travel insurance providers and if travellers need to clarify the level of cover under their policy we urged them to contact our emergency contact points," Mr Sopinski said.
In QBE's case -- which partners with ING -- there is provision to cover cancellation costs for unused prepaid arrangements, additional costs from changes to travel plans only for policies purchased before 4.30pm AEST, 15 April 2010.
“We obviously hope for everyone's sake that flights can resume safely as soon as possible however in the meantime I wish to stress that Mondial Assistance will not abandon any of our policyholders who are stranded in Europe or elsewhere," Brett Robinson, Chief Executive Officer of Mondial Assistance in Australia said.
“As an example, if you are stranded in London and unable to board your flight to Australia, Mondial Assistance will cover the cost of reasonable accommodation expenses while you wait for your flight home.
“We want to help so by reasonable we mean the same standard of accommodation that you have been paying for as part of your trip so far.
“We can also help if you have no means to pay for your hotel or other accommodation while you are unable to board your flight—we can provide guarantees directly with accommodation providers.
“If you have already incurred costs for additional accommodation, those costs can be refunded once you submit your claim with us.
“If you are not due to depart Australia until next week we ask that you be patient with the situation and not rush to cancel your plans at this stage,” he said.
SouthernCross Insurance says an insurance policy purchased after April 16 would only cover expenses related to a second volcanic eruption as that would be classfied as un unforeseen event.
Asked whether the ash cloud has caused financial pain for Suncorp, Mr Sopinskli said that it's far too early to place any estimate on the number or value of potential claim liabilities arising from the volcanic eruption" but that they are closely monitoring the situation.
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