Insurer calls for airlines to offer failure insurance

A leading provider of travel insurance is calling on air carriers to offer cover against potential collapse.

Mondial Assistance has expressed its opinion regarding the need for protection for passengers in the wake of numerous airline failures this year, including Sterling and XL, which left thousands of air travellers out of pocket.

The Air Transport Users’ Council is lobbying the government to introduce regulations requiring passenger protection if a scheduled airline collapses.

As increasing numbers of the public choose independent travel over booking through ATOL-bonded travel operators or ABTA agents, they are more vulnerable to airline failure, particularly in the current economic climate, Mondial stated.

Mondial already counts a number of carriers among its clients and now is calling on others to offer their passengers airline failure insurance as well.

The company’s sales director for the UK, Ben Smart, said: “It is clear that consumers need more protection from the risk of airline collapse. Although some insurers do not pay out in the event of an airline failure, others have provided this level of cover for its travellers for some time.”

Smart added: “As the economic downturn continues to put pressure on businesses, it is essential that consumers are covered for potential losses. It is important that airlines meet the needs of their customers by providing comprehensive cover to suit the demands of today’s market.”

Thanks to www.travelmole.com for the above quotes, for more information please visit their website.

www.mondial-assistance.com