The ongoing flight cancellations caused by the volcanic ash cloud have raised fears that insurers could balk at paying compensation claims. The Federation of Small Businesses (FSB) waded into this dispute this morning, calling on the Association of British Insurers to urge its members not to use the "act of God" excuse.
"We do expect insurers to be understanding... and not negate their duty to customers," said Stephen Alambritis of the FSB.
We have already heard that some large insurers are making discretionary payments to customers. It appears unlikely, though, that the insurance industry will agree to wave though all volcano-related claims.
"There is no standard set of conditions in a travel insurance policy which applies to a situation of this kind," an ABI spokesman told us. "Therefore customers should check their travel insurance policy, and speak to their travel insurer to understand what their individual policy covers them for in this situation."
In fact, the insurance industry doesn't actually recognise the term "act of God".
"There is no 'act of God' exclusion in insurance policies. The term 'act of God' is more of a legal term, with most insurance policies simply setting out what is insured and what the main exclusions are," the ABI spokesman added.
Of course, if you do feel let down by your insurer, you know where we are...
