What you need to know about travel insurance after 10-Aug

Potential travelers are very strongly advised to check up on the level and type of cover offered by Travel Insurance companies as a result of recent terrorism related security clampdowns.

Whilst almost all insurers offering travel insurance have exclusions for terrorism related events, there is currently a variation in the definition of what constitutes a terrorism related violent action.

As an example, some policies define terrorism to include “violent acts, the treat of violence used by a person or organization to promote their cause or beliefs”, some even include military force used to combat terrorist acts.

Other insurance policies are more specific, defining terrorism as “an act done with the intention of developing a political, ideological or religious cause, and with the intention of influencing by intimidation, the government of a country”.

Another issue relates to the standard exclusion of cover for personal valuable items such as cameras, computers, etc held in the hold of an aircraft from insurance policies. As a result of the new guidelines currently being enforced in the UK, where such items are prohibited from carriage in the cabin, you should check with your insurer to determine whether this clause has been temporarily removed.

Some commentators have suggested that less than half of travelers into and out of the UK are potentially likely to have insurance claims as a result of the recent events for disrupted travel, hotel cancellations, etc honored by travel insurers.

This seems to relate to a very narrow interpretation by travel insurance underwriters of whether the delays are as a result of terrorism, or of attempts to prevent terrorism.