Direct Line Travel Insurance introduces cover for the financial failure of airlines


17th December 2009

Flyglobespan is the latest airline company to go bust leaving thousands of people stranded abroad. In fact, in the last two years over 60 airlines* have gone out of business leaving passengers out of pocket for the cost of their travel or accommodation.

Direct Line is one of the few travel insurers to address this issue by including airline failure cover to their travel insurance products. Direct Line's travel insurance policies will now protect customers from financial loss should their airline go bust. It also includes cover for the failure of hotels, villa rental companies, car hire companies, ferry companies, theme parks, excursion providers and many more.

The new protection will also cover the cost of a return flight in the case of an airline collapse whilst the customer is on holiday. This is not included in the protection provided for credit card purchases under the Consumer Credit Act.

Jennifer Thomas, spokesperson for Direct Line travel insurance, said: "Holidaymakers are understandably looking to spend less on travel these days, and booking directly with airlines and hotels can be a good way of getting more while spending less.

However, this means that it is now more essential than ever to have insurance in case these firms fail, as there is no protection from schemes such as ATOL or ABTA if booked direct. With our updated travel insurance policies, our customers can now travel with increased peace of mind, knowing that they will be covered in the unfortunate event of a supplier's collapse."

Direct Line's travel insurance policies include the following:

Pre-existing medical conditions (subject to phone based screening)
Emergency Medical Assistance Service - 24 hours a day, 7 days a week from anywhere in the world
Up to £5 million of medical expenses

*Source - IATA (International Air Transport Association)

The cover is underwritten by International Passenger Protection Ltd (IPP), a worldwide leader in specialist financial failure insurance who has A-rated security underwriting their policies with net assets in excess of 100 billion euros.

Direct Line

Started in 1985, Direct Line became the first UK insurance company to use the telephone as its main channel of communication. It provides motor, home, travel and pet insurance cover direct to customers by phone or on-line.

Direct Line is part of RBS Insurance, the second largest general insurer in the UK and is wholly owned by the Royal Bank of Scotland Group. .

Direct Line Insurance plc is authorised and regulated by the Financial Services Authority. Registered office: 3 Edridge Road, Croydon, Surrey CR9 1AG. Registered in England and Wales no. 01810801. The Financial Services Authority's Register can be accessed through

The Royal Bank of Scotland plc, Registered in Scotland No. 90312. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB Authorised and regulated by the Financial Services Authority.

*Source: Jennifer Thomas, Direct Line Press Office

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See also:

December 2009: Globespan collapse highlights the need for travellers to check their Travel Insurance Protection

Protect your holiday - Financial Failure Travel Insurance from as little as £5 per person

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