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Scheduled airline failure 'not covered by most travel insurance'

By Tom Farley, Tue 29 Jun 2010 - Published in Travel Insurance

The majority of travel insurance policies do not cover their customer against scheduled airline failure, new research has revealed.

A report by independent financial research firm Defaqto showed that 77 per cent of single-trip insurance polices do not cover people for this eventuality. Only 21 per cent include the feature as standard, while two per cent have optional cover available for a price.

Furthermore, the study found that only 20 per cent of annual travel insurance products include scheduled airline failure cover as standard and two per cent offer optional cover.

Meanwhile, just 14 per cent of extended trip deals include the cover, while one per cent have it as an option - leaving 85 per cent of customers without protection.

Brian Brown, head of research at Defaqto, commented: "Not everyone has the same needs for their travel insurance arrangements so it is important to take some time to review features carefully."

Last month, price comparison website moneysupermarket.com claimed that travel insurance is significantly more expensive if bought from an airline, tour operator or travel agent.