The British Insurance Brokers’ Association (BIBA) has extended its travel insurance policy, BIBA Protect, to cover independent travellers against airline and supplier collapse.
Travellers who take out the policy, and who book direct with airlines, accommodation suppliers, car-hire companies and excursion companies, will be covered should any element of their holiday fail. The policy will also cover dynamically packaged holidays.
The new cover, which is provided by Tokio Marine Europe Insurance Limited in partnership with International Passenger Protection Limited, applies to policies sold after October 5 2009 and is only available through BIBA members.
BIBA technical services manager Steve Foulsham said: “In situations such as Sky Europe, BIBA policyholders would have been able to claim their lost monies on their travel insurance, so that they could continue with their arrangements. If the clients were overseas then the policy would have covered their increased cost to return home.
“Financial failure could be a real issue. Traditionally, bookings through a travel agent provide protection but many people now want to book their holiday online.
“Up until now, if you booked your flight online and the airline went into liquidation, you could have been in trouble. Consumers with a BIBA policy can now enjoy their holiday with peace of mind.”
According to BIBA an estimated 50% of trips from the UK are not covered by ATOLs.