Lost Luggage Insurance Removed

Travel insurance companies have been changing their policies in the last few months. Now some of the travel companies have removed lost baggage coverage for customers flying out of Heathrow’s Terminal Five. Thousands of items have been lost or delayed in getting to the consumers. This recent news release from British Airways’ has made the insurance companies stand up and take notice. Since the problem is continuing out of just that terminal they have decided to exclude luggage loss and delays from travel insurance. The main companies removing this from the policy are Direct Line and Churchill. In a speech Direct Line stated that it is a principle to cover insurance that covers the unforeseen chance events.

The fact that British Airways has announced the problem and that it has been ongoing means it is not longer an unforeseen event; therefore under the policy terms it is no longer covered. The fact is those who have bought these policies should have been made aware that lost or delayed luggage would not be covered. The policies bought before the decision are not going to be affected, so if you have annual cover for travel insurance you are going to be safe. This means if you are in need of a payout you are entitled to it by the policy terms you have had for the year.

Direct Line further spoke that they look at each claim and decide on its own merit. This means they may cover for the incident if you have the right circumstances. A spokesperson for Association of British Insurers believes it is up to the individual insurance companies to decide if they will cover this particular issue. Insurance has always been there to pay for the unexpected, but some companies believe that if you have to fly out of that terminal you should still have cover.

Back To Financial News April 2008
Travel Rewards With Your Credit Card
APS and Prepaid Gold MasterCard
The Figures On Credit Card Balance Transfers
Pointers for Balance Transfers
Credit Card Interest
Credit Offers Limited
Executive’s Life Ruined by ID Theft
Getting Around Life’s Obstacles
How To Borrow A Grand
Paying for a Good Credit Rating
UK Debt and the Mortgage Industry
Abuse of Government Credit Cards
Asian Growth Helps UK
Banks Raising Funds Offers Hope
Darling and UK Banks Going Head to Head
Estate Agents and Card Fraud
Government to Help UK Banks
Insuring UK Gardens
Interest Rates Rising with Underhanded Techniques
Lost Luggage Insurance Removed
Overdraft Charges Increase Credit Card Balances
Prediction: 10 Percent Drop in Insurance Market
Rise in the Housing Market Prices
The Scams With Telephone Calls and Security Codes
UK Insurance Costs Rising