Frequent travellers are all too aware that by booking and paying for flights does not necessarily guarantee you will be flying out as scheduled to your intended destination.
Travel supplier insolvency has become such a likely occurrence that has necessitated the travel industry to spring into action and offer travellers financial help in the form of scheduled airline failure insurance; in addition to other policies that cover cruise line, hotel accommodation, car hire services, and rail and coach operator protection.
What do you do if you are already scheduled to depart and the airline you have chosen has suddenly gone bankrupt? The more informed you are, the more options there will be open to you.
When booking flight tickets
When shopping for flight tickets it is helpful to take some time to read the airline carrier’s terms and conditions in the event they cannot honour their obligations –you will have a better idea of what your options are before the event even arises.
Opt for travel insurance with financial default and bankruptcy coverage. The added security offered by specialist travel insurance cover offers unrivalled peace of mind. While no one can really compensate for the frustration and inconvenience of having travelled plans go awry, this may be the only secure way to ensuring that your financial losses are kept to the minimum, and new travel plans be put in place.
Before a scheduled trip, it is always important to keep your eye out for any changes that are happening with the airline you are booked to travel with. If you are flying with one of the biggest airline companies around, you will most likely be aware of any news as soon as it happens; however, if you are flying with a smaller airline company it is a little trickier.
How can supplier insolvency cover protect you?
To benefit from this cover, ensure your travel insurance policy should be comprised of one of the following:
You will be compensated for any irrecoverable expenses that you have paid in advance towards your journey or that part of your journey which is cancelled before your departure should the airline carrier fall victim to financial insolvency or liquidation. Compensation is limited to the amount stated in your policy.
It is not only travellers who are affected by airline carriers going insolvent before the departure dates, but those who have already begun their journeys. You may be waiting to return home when you hear the migraine-inducing news that your flight ticket back home is now void. Cover under this policy will extend to compensating the expenses of an economy class flight ticket so that you can return to your country of residence.
For any valid claim you will have to meet certain terms and conditions. These include booking your travel arrangements in South Africa before leaving; and your chosen travel supplier should have a license to operate in South Africa.