Travel insurance does not cover terrorism, says analyst

14 August 2006
According to a senior analyst for Moneysupermarket.com, customers whose travel plans have been thrown into disarray as a result of the terrorist threat at Heathrow airport may not be reimbursed, despite holding insurance policies.

Peter Gerrard, a senior researcher at the price comparison site, said that even if passengers held insurance policies, they were not necessarily covered for all losses they would incur because of the nature of the problem.

"Most travel insurers will not cover you for acts of terrorism," he said. "It is highly likely this general stance will extend to delays, missed flights or cancellations caused by the threat of terrorism."

Around 21 people have been arrested so far for their part in a plot to target up to ten civilian aircraft flying from the UK to the US last Thursday (August 10th). The bombers had planned to use liquid explosives to blow-up the aircraft while in the air.

Comprehensive security checks at all UK airports are disrupting holidaymakers' travel plans and many analysts expect some sort of insurance and financial fallout from the alert.

Mr Gerrard said he advised passengers who were affected to check their individual insurer's position regarding claims.

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