Last week we called on insurance brokers to
let the Monarch collapse serve as a cue to urge clients to double-check whether their policy covers airline failure, as it turns out not all policies provide the cover as standard.
Now possible insurance, as well as legislative, reforms are on the table, following a massive repatriation exercise being undertaken by the UK government. More than 400 flights and approximately 80,000 passengers were involved in the first week alone of the Civil Aviation Authority’s flying programme.
“This is something I will want to take up with the insurance industry,” said transport secretary Chris Grayling, as quoted by the
Financial Times. “It seems unfortunate that for something that happens once in 10 years they don’t have cover included. This is one area where I do think there is a case for change.”
According to the report, Grayling also revealed amendments to legislation being considered by the government to avoid a repeat of what happened when the airline went into administration. All flights were immediately cancelled following the suspension of Monarch’s air operating certificate, unlike in the case of non-UK carriers Air Berlin and Alitalia.
“Our efforts will turn to working through any reforms necessary to ensure passengers do not find themselves in this situation again,” said Grayling. “We need to look at all the options – not just for ATOL (Air Travel Organiser’s Licence) but whether it is possible for airlines to be able to wind down in an orderly manner and look after customers themselves without the government needing to step in.”
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Travel insurers alert as Monarch goes into administration
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