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The ongoing impact of the Icelandic volcanoTravel insurer Chartis has asked Australian businesses to re-examine their existing policies in light of the Icelandic volcano eruption earlier this year. The 16 April eruption of Eyjafjallajökull grounded flights across much of western Europe for five days due to the threat of volcanic ash to aeroplane engines. Due to the unprecedented airspace restrictions, millions of Europe-bound travellers found themselves either stranded in stopover destinations or unable to board their flights. However, some affected business travellers may be surprised to learn that they will not be covered under a basic travel insurance policy or by the airlines themselves. International travel insurer Chartis has issued a statement pledging its commitment to providing customers with protection from unforeseen and unexpected events, but reminding them that the timing of such insurance is critical. “Many insurers have taken the position that travel insurance is like fire insurance – you can’t buy cover once the fire has started,” says Chartis’ Regional Travel Product Manager Mark Kopec. “The great news is that Chartis does not view the sporadic flight disruptions due to volcanic ash as one event nor a pre-existing condition. We will consider claims irrespective of government intervention or regulations.” “However, if you buy or activate an insurance policy after an unforeseen or unexpected event occurs, you are undermining the whole purpose of an insurance policy. Claims in such circumstances may not be paid.” Chartis underwrites travel insurance products for brands such as Jetstar, NAB, ANZ, Tiger Airways and Diner’s Club. To date, Chartis’ Australian branch has paid almost $AU700,000 in claims to hundreds of Australian travellers in relation to the Icelandic volcano eruption. Over 80 per cent of these were paid within 48 hours of determination and settlement. In addition to the claims paid, Chartis says it expects to pay at least two or even three times that amount. “We have taken the position that future travel disruptions caused by the volcanic eruption will, in most cases, be unforeseen or unexpected and as a result our clients would be generally covered,” Mr Kopec said. To ensure corporate clients are matched with the right kind of travel cover they need, Chartis advises noting:
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