A Maltese insurance company is offering "volcanic ash insurance" as an extension to the normal travel insurance, to help travellers overcome their fear of having their holidays ruined by the notorious Icelandic volcano.
Some experts have said the volcano may continue to erupt for several months, on and off, making tourists more cautious about planning their trips. Yesterday, scientists reported that activity at the crater had stopped but warned it was too early to say whether it was all over.
Cordina Insurance Agency announced it would provide volcanic ash cover so that if anyone ended up stranded in a country, they would be covered for extra expenses such as accommodation and living expenses.
"This innovative move allows you the opportunity to book with renewed confidence," the agency told its customers in an e-mail, adding this would be done as an extension of the normal travel cover but at an added premium.
The insurance will not cover costs that airlines or other operators are obliged to pay but will give customers up to €2,400 in holiday costs already paid if the flight is cancelled or delayed for more than 24 hours before departure.
For example, if you are due to travel from Malta to London and had already booked accommodation, car hire and/or ferry at your final destination, you will be reimbursed for these costs up to the value of €1,400 per person with Silver Travel Insurance Policies and €2,400 per person with Gold Travel Insurance Policies.
But it also covers "any reasonable unplanned for costs" incurred if you get stuck in a country because the flight home was cancelled or delayed. The amount paid in this event would be up to €150 per person, per day, with a maximum of €1,050 per person. The volcanic ash insurance cover is an option that can be added to the travel insurance bought through the agency and costs €10 for the silver package and €12 for the gold package.
Maurice Cordina Borg told The Times the extension cover was only available through its approved travel agents and tour operators and its Tied Insurance Intermediaries, authorised to sell its insurance products together with their own travel/tours/ insurances.
It is not available to individuals. This move by Cordina, which are agents for German company Sovag Insurance, may well prompt other agencies to start offering similar packages.