Scheduled Airline Failure

(Almost) Everything you need to know about Scheduled Airline Failure!Since the widely reported news of Monarch going into administration, and the recent problems Ryanair has been facing, many travellers have been left without a flight, without a holiday, or at least with a lot of worries.

November 2017

These two incidents have highlighted more than ever the relevance of reading and understanding the travel insurance policy you are buying, and ensuring that you are getting the cover you want and expect. We know that Travel Insurance policies can be a bit daunting and lengthy, but it is incredibly important to read your schedule of benefits and even the InsuraTrip policy wording before purchasing, and contact the Customer Services team on 01483 806 909 to ask any questions you may have that arise from this.

To help you make a decision on the right policy for you, here is some information that should help clear up a few things which may be troubling you given recent events, and hopefully answer many of your questions about Scheduled Airline Failure Insurance (SAFI).

What is Scheduled Airline Failure Insurance?

If you are worried about the airline you are booked on becoming insolvent before your departure, or even when you have already departed for your trip, the “Scheduled Airline Failure Insurance” cover is what is important to you, and that’s the section of a policy wording you should be looking out for. It provides financial cover in the case that the airline you have chosen to fly with has become insolvent (including going bankrupt, or going into administration like Monarch has). SAFI is a specialist type of cover and is not included on all travel insurance policies, so is certainly something to look out for when shopping around.

Who is it for?

SAFI provides cover for people who have booked their travels independently from a tour operator. So if you have booked a package holiday through a registered ATOL travel agent, you should already be covered by their ATOL licence protection and SAFI does not apply to you as your Tour Operator will also have a duty of care to get you home. You will also usually be protected if you purchased your tickets using a credit card thanks to the Consumer Credit Act 1974 as they have been unable to provide the service you have paid for. Likewise paying by PayPal also offers some additional consumer protection in some situations, as do debit cards via their charge back scheme.  

What is covered?

SAFI is designed to provide you with peace of mind if your airline goes into insolvency, as you will typically be able to get reimbursement for the unexpected costs of new travel arrangements before you leave on your trip, or sometimes, depending on your policy, if you have already departed. All travel insurance policies are different, so as we said before, always read your policy wording to check what you are, and are not, covered for.

InsuraTrip Premier offers you cover up to £1,500 for Scheduled Airline Failure if:

• you incur financial loss due to the airline you are flying with becoming insolvent
• you have booked independently through a travel organiser or direct with an airline
• if you have already departed you can claim for the proportionate value of the unused part of your scheduled airline ticket, to help cover the costs of a return flight home

As with all Travel Insurance Policies there are some exclusions, for example if your booking has been taken over by another airline and you therefore have a replacement flight – you have not incurred any financial losses, therefore there is no cover applicable. We recommend you check what these exclusions are beforehand so you can avoid any surprises in the event of a claim.

What else does InsuraTrip offer in the event of failure of another element of your trip?

An additional Option available to add on to all levels of an InsuraTrip policy is “End Supplier Insolvency Insurance”, which provides cover for reimbursement of irrecoverable amounts that you have paid to a supplier of one of the other elements of your trip beyond the airline failure (e.g. hotel, rail operator etc) in the event of insolvency. As with SAFI this cover can apply before or after departure, and provides cover in respect of a Force Majeure ‘unexpected’ event (for example a Volcanic Ash Cloud) disrupting your trip.

Find out more about this Option.

InsuraTrip offers 4 levels of cover to choose from - Basic, Standard, Super, or Premier, and is available as a Single Trip or an Annual Multi Trip policy. With many additional Options such as Winter Sports, Cruise Plus Cover, or Gadget Cover you can easily tailor your InsuraTrip Travel Insurance policy to suit your travel needs.

Find out more about InsuraTrip & get a quote today.

If you have any questions about Scheduled Airline Failure Insurance, or End Supplier Insolvency Insurance we are happy to provide you with further information - just give the InsuraTrip travel insurance team a call on 01483 806 909.

For more information on what to do if you are a Monarch Airline customer, read our latest update

Written by Rosie