Tuesday, 11 May 2010
Nothing but ash?
As we are blasted by arctic winds this week I am sure many of you are, like me, looking forward to an annual escape to sunnier climes in the coming months.
The current air travel chaos has already left many an air passenger ready to blow their top, much like that now dreaded Icelandic volcano. Anybody looking to travel by air in the next few months at least has good cause to wonder whether they will get where they want to go, and whether they will be able to get back from there without incurring extra cost.
Can the law help you get your money back if the worst happens, or will you literally be left with nothing but ash?
If your holiday or flight is affected by the volcanic ash fairly standard terms in contracts, well-established legal concepts and EU air passenger rights will help you either:
- get your money back;
- allow you to rebook for a later date; or
- be rerouted to your final destination.
So far, so good for money paid directly under a contract. But what about loss which follows on from that - like the cost of additional accommodation and extra spending money if unable to get home because of flight cancellations?
This is much less straightforward and is unlikely to be covered under the terms and conditions of a holiday or flight contract. Although some companies will cover such costs out of goodwill, they are unlikely to, and you would then be relying on your travel insurance.
Business interruption
Many businesses also depend on the air travel industry to transport both employees to provide services and goods for use directly in their business or to supply to customers. Businesses who depend on air travel in any substantial form should consider purchasing some business interruption insurance if this is not already in place. Of course, it is very important to look at the precise terms and conditions to see what would be covered and to seek legal advice on them if at all unsure.
Insurance claims
Individuals and businesses alike who have already suffered loss because of the volcanic ash travel chaos should not just accept claims by insurance providers that they are not covered for losses at face value. If in any doubt, ask, and we will happily look at your policy for you.
The public, businesses and insurers were caught cold when the first air space closures were ordered. Now air travel providers and insurance companies are aware of the risk and potentially huge costs, they will certainly be instructing legal teams to do what the can to tighten up terms and conditions.
This makes a thorough review of the terms and conditions of any new insurance policies you are considering entering into, whether they be travel or business interruption, even more crucial.
If you have any questions or policies you want CCW to look at for you, just get in touch.