Travellers insurance stung by security threat

11 August 2006
The raising of the national security threat level and the subsequent disruption to air travel throughout the UK is set to cause headaches for thousands of travellers, says financial research company Defaqto.

Not only will the disruption mean a far more stressful departure or return from holiday, it could also be a serious problem when it comes to claiming on insurance policies for the costs incurred.

Insurance policies covering holidaymakers for loss, damage or injury caused by terrorism may not apply to many because no terrorist act has occurred and it is only a threat.

Damage to valuable items that will now have to stowed away in the hold rather than taken as carry-on luggage, costs incurred by travel plans changing, and items misplaced in transit may all be uninsured if people have not taken out comprehensive enough policies.

Brian Brown, associate director at Defaqto said: "Travellers should avoid taking expensive equipment with them if possible, or make sure they place their valuables in a secure suitcase.

"Emergencies of this type do expose the strict terms of travel insurance policies and will encourage travellers to examine their own policies to see how well they address these circumstances."

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