Of the many disruptions that the coronavirus has caused, none is more apparent than impact on global travel. Airlines, travel companies and particularly travel insurers, on whom the global travel industry relies, are bracing for a potential £275 million in claims. The true cost of the unprecedented coronavirus pandemic can only be guessed, the closest world event that recently impacted across Europe is the 2010 volcanic eruption in Iceland that caused an ash cloud that enveloped Europe and prevented all flights.  The cost of the claims arising from the ash cloud amounted to in excess of £62 million in the UK, rising to £148 including Europe.  The projected figures for coronavirus far exceeds these figures, for the first quarter alone the expectation is 400,000 claims in the UK, which considerably exceeds any other disaster. We are facing the biggest single random event which is clearly insurable.

The Association of British Insurers (ABI) Mark Shepherd, the head of general insurance policy commented “At this unprecedented time, travel insurers are helping soften the financial blow for thousands of customers whose travel plans have been cancelled or disrupted by coronavirus,” he further commented “Along with compensation from sources, such as airlines and credit card providers, travel insurers are helping customers get through these tough times.”  However, it is not a secret that obtaining a refund or compensation from insurance companies, in far less challenging circumstances, can be a long drawn out procedure fraught with attempts to avoid settlement on the part of the travel insurers. 

Understandably, the vast majority of travellers facing financial losses due to the coronavirus disrupting their travel plans are not likely to be equipped to offer a counter to a rejection of their claim as this will be unfamiliar territory to them.  Legal Law Limited’s insurance and reassurance team, headed by Piero Mastrosimone, frequently acts for individuals attempting to make a claim against insurance companies have the crucial legal expertise in dealing, not only with the legal issues surrounding a claim but their knowledge and understanding of the insurance companies avoidance strategies. The capacity that Legal Law Limited’s insurance and reassurance team has to understand both aspects of a claim is invaluable. Legal Law Limited’s insurance and reassurance team can help you with:

• Make a claim for  compensation due to cancellation because of the coronavirus
• Explaining your rights
• Clarifying what you are entitled to
• Advising on what happens if the company goes into administration
• Informing you on your rights for bookings made for the future
• What happens if you have booked a flight-only deal?

Noted insurance companies are relinquishing certain types of policy altogether.  Liverpool and Victoria (LV) was the first insurer to stop selling any new travel insurance policies, swiftly followed by Admiral, Direct Line, Churchill, Aviva and Zurich.  Insurers have also started to withdraw other products and most event cancellation policies now specifically exclude coronavirus as a risk.  Industry commentators are suggesting that insurers are going to be extremely reluctant to pay out on claims related to the coronavirus crisis.  However the Financial Conduct Authority warned insurers that they must treat their customers fairly, with interim chief executive Christopher Woolard commenting, “we would not expect to see a customer’s ability to claim affected by circumstances over which they have little control.”

All this suggests that individuals who have suffered losses resulting from cancelled travel plans face an up-hill lengthy task when trying to obtain compensation.  Legal Law Limited’s insurance and reassurance team can bring legal weight and expertise to help you get the compensation you are entitled to for the disruption the coronavirus pandemic has caused to you through no fault of your own.