Insurers accused of 'disappointing' response to eruption

(GETTY IMAGES)

Confusion reigns over whether travellers affected by the grounding of all UK flights after the eruption of the Eyjafjallajokul volcano in Iceland will receive compensation from insurers.

The Association of British Insurers said that volcanic eruptions were not covered in some insurance policies and urged stranded travellers to speak to their airlines and travel companies about alternative transport and accommodation arrangements.

Nick Starling of the ABI said: "Travel insurance policies will differ. Customers should check their travel policies, and speak to their insurers to understand what their individual policies cover them for in this situation."

Insurance industry observers described the response of firms as "disappointing", and criticised them for being slow to act.

"I have spoken to several main providers and the majority still haven't developed a position on how they will handle any claims for cancelled and delayed flights and any other monetary losses," said Bob Atkinson from Moneysupermarket-.com. "The reaction from many has been extremely disappointing."

But some insurers have stepped up to the mark. Direct Line said it would cover people for losses due to the delays. Likewise, Fortis said it would be treating the eruption as a bad weather incident – which means claims will be covered.