Travel: Insurance

(asked on 17th March 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to ensure that people that can no longer travel as a result of the outbreak of covid-19 can claim compensation through their travel insurance.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 23rd March 2020

On Tuesday 17 March the Chancellor announced that as the wider economic picture becomes clearer, the Government would do whatever it takes to get our nation through the impacts of COVID-19 and that he stands ready to announce further action wherever necessary. The Government is in continual dialogue with the insurance sector about its contribution to handling this unprecedented situation.

In the first instance, customers who can no longer travel should seek compensation from their travel providers. Many UK carriers are offering vouchers, free rebooking or refunds.

Further, on 17 March the Foreign and Commonwealth Office advised against all non-essential travel abroad. Generally, insurance for cancellation or travel disruption will be triggered by FCO advice. This decision will therefore allow policyholders to claim for cancelled trips that were already booked and cannot now go ahead, if they have the relevant cancellation or travel disruption cover in place.

In addition, the FCA’s rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed.

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