subject: Aviva 'first To Offer Volcano Insurance' [print this page] As of 1 June 2010, Insurance provider Aviva will be offering its customers a new optional add-on to its travel insurance policies that will provide cover for holidaymakers against the ash disruption.
The new volcanic ash travel insurance policy is available from today and has been designed to protect customers against UK airspace, port or airport closure for more than 24 hours from the date and time of scheduled departure.
Aviva is currently the only UK insurer to provide the additional cover, which will cost customers 5 per person for a single trip insrance policy, or 10 per person for annual travel insurance, available to new and existing customers.
The policy states that those unable to travel due to airspace closure will be covered for up to 5,000 per person for travel and accommodation costs (including deposits) where the amount cannot be recovered from policy-holders' travel providers.
Meanwhile, if policyholders are unable to return home to the UK as a result of airspace closures 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 provide policy holders' with 100 for every 24 hours spent away from home (up to a maximum of 1,500). This is irrespective of any aid offerd by the travel providers or airlines.
The second option allow customers to claim back up to 1,000 for any "necessary and reasonable" travel expenses where after 24 hours the customer unavoidably has to make alternative travel arrangements in order to get home, which cannot be arranged by their travel provider.
The policy will also pay out for any emergency medical supplies required to prevent a deterioration or exacerbation of an existing condition.
Existing Aviva customers have been notified that they only have 30 days to purchase the add-on cover should they require it.
Customers that were aware of airspace closures prior to purchasing the insurance will not be covered.
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. So we have broadened our cover beyond the impact of volcanic ash on flights to include any reason for airspace, port or airport closure. This would include examples such as terrorism, prevention of terrorism or even a pandemic situation, such as bird flu.
"This should help customers feel more confident of their position as they look either to go on holiday soon or plan to book one later in the year. We are providing our customers with the freedom to choose the cover they feel would be right for them."
Other insurers are likely to follow as Icelandic scientists recently announced the volcano as 'dormant, although it is still too soon to say whether it will remain inactive. The Icelandic Met Office said yesterday: Today, the eruption seems to be dormant. There is still a considerable amount of steam coming from the crater, but no ash can be seen in it.
by: Sam Gooch
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