Agents tell clients to buy failure insurance

ABTA supports move for worldwide system to protect consumers

Get covered: all Lunn Poly retailers are now advising customers to take out further protection

Agents tell clients to buy failure insurance

Report by JULIETDENNIS

AGENTS are advising customers to take out scheduled airline failure insurance for the first time as more carriers find themselves in trouble following the US attacks.

Staff at Lunn Poly’s 800 shops have been told to offer the insurance on scheduled flights to protect customers if an airline goes bankrupt. Other agents have also begun offering the insurance, but for £2 rather than the previous £1 charge in the belief insurers will now put the premiums up.

ABTA chief executive Ian Reynolds said there was now even more of a need for a worldwide system to offer client protection if airlines go under.

“It’s the important missing piece for consumers, but airlines are reluctant because they feel there is no risk of going bust,” said Reynolds.

The association has been lobbying the Government for an industry-wide policy since the fall of Air Europe in 1991. It has already put its weight behind an International Air Transport Association scheme being devised across Europe. This would involve insurance being collected in a central fund to protect consumers against airline collapses and carriers against travel agency failures. Airline consolidators operating under IATA schemes already offer the insurance on discounted seats and travel packages sold by agents also include cover.

Tana Travel in Stratford is now offering the insurance on scheduled flight-only sales because of the impact of the US crisis on airlines.

Managing director Neil Basnett said: “We are offering it to everybody which we have never done before.”

Tana Travel has had to deal with passengers booked on Ansett, which recently collapsed, and now Swissair.