Globespan collapse highlights the need for travellers to check their Travel Insurance Protection
International Passenger Protection Limited, the worldwide leader in travel financial failure, advise that the collapse of Globespan demonstrates the necessity for all travellers to check their travel insurance policy to ensure that they have adequate cover for such financial failures.
This follows a warning last month from ProtectMyHoliday.com, the specialist travel protection website, that there would be airline failures over the festive period.
As a budget airline an estimated three quarters of Globespan customers booked their ticket directly via their website. These tickets fall outside of the governments ATOL scheme which protects travel arrangements sold as packages as opposed to an individual component booking.
The success of websites such as www.tripadvisor.com demonstrate the popularity of independent travel providing freedom to consumers to design their travel arrangements to meet their desires. Estimates are now that over 50% of overseas travel from the UK is not sold as part of a package.
The millions of trips which are not ATOL protection are increasingly being covered by travel insurance providers who provide Financial Failure cover on their retail travel insurance policies with sections such as Scheduled Airline Failure and End Supplier Failure.
The cover provides a refund if the loss occurs prior to the trip, which can be put towards making alternative arrangements. If an airline collapses during the trip then the cost of replacement tickets is covered, which are usually several times more than the original ticket value.
For those who do not have cover in their travel insurance policy then stand alone policies are available from www.protectMyHoliday , where travellers can purchase a tailored policy to financially protect their trip.
With over 60 airlines collapsing since the start of the recession, the airline industry expected to lose €11 billion during 2009 and stabilisation not expected for several years it is important that travellers understand what protection is in place for and what options are available to them.
MORE INFORMATION
ProtectMyHoliday.com is a trading name of International Passenger Protection Limited (IPP) formed in 1990.
IPP is the largest and main supplier of Scheduled Airline Failure Insurance (SAFI) and cover for other parts of the holiday in the UK and world-wide operating in over 30 countries.
IPP operates as an underwriting agency on behalf of insurers and re-insurers who's combined net worth exceeds Euro 100 Billion
Source: ProtectMyHoliday.com
See also:
December 2009 Direct Line Travel Insurance introduces cover for the financial failure of airlines
February 2010: Many companies are trading outside of the Package Travel Regulations warns Insurer
December 2009: Globespan collapse highlights the need for travellers to check their Travel Insurance Protection
November 2009: Bankruptcies over the festive season predicted by ProtectMyHoliday
October 2009: Insurers already have it covered - Holiday Protection
September 2009: SKY Europe's failure warns passengers to check their travel insurance policy
Protect your holiday - Financial Failure Travel Insurance from as little as £5 per person
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