Yesterday we told you about all Monarch Airlines flights being cancelled as the company went into administration. If you’re an insurance broker, you might want to use this as a prompt to urge your clients to double-check whether their policy covers airline failure.
Citing data from independent financial information business Defaqto, a Mirror report said not all policies provide this cover as standard. According to Defaqto, 40% of policies do not offer the cover at all while only 49% provide it as standard. For others (11%), it’s optional.
The report also mentioned Stephanie Corbett, head of travel at comparethemarket.com, who said, “For those flyers wishing to protect themselves from their airline going bust, it’s worth checking to see if your insurance includes Scheduled Airline Failure Insurance or SAFI.”
Meanwhile, for those who have bookings and have yet to fly out of the UK, the Civil Aviation Authority (CAA) has outlined online how to claim for refunds. As for travellers already abroad and due to return to the UK not later than October 15, 2017, the CAA is making arrangements for new flights.
“Many customers will be protected, either through Monarch’s ATOL (Air Travel Organiser’s Licence) Certificate, or because their booking was made by credit card,” commented the British Insurance Brokers Association (BIBA). “Those customers who find themselves not eligible for compensation should contact their insurance broker or travel insurance company to check if airline failure is covered.”
Along with the airline, the other companies that have ceased trading are Monarch Holidays Ltd, First Aviation Ltd, Avro Ltd, and Somewhere2stay Ltd. Further information, including which customers are protected by ATOL, can be found on monarch.caa.co.uk.
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