Travel Insurance May not Cover Airlines Going Bust

Holidaymakers' travel insurance may not cover them for the event of airlines going bust, one expert has advised this week.

The Civil Aviation Authority (CAA) warned that if this happened then travellers may be left uninsured and without a holiday.

David Clover, Air Travel Organiser's Licence (ATOL) spokesperson for the CAA, said: "There are a few products out there which do give you cover but they are very few and far between.

"If you are taking out cover look very carefully at what it does provide protection against. If it does cover insolvency then all well and good but it may only give you limited cover."

He added that there is "a big misconception" that travel insurance covers "all these situations" and advised travellers to shop around for an insurance policy which gives a "varying range of protection".

In the UK, all tour operators and travel firms are legally required to hold an ATOL.

This protects consumers against losing their money or being stranded abroad if these firms were to go into insolvency.

Travel Industry News posted on 01/05/2008 10:50:12