Travel Insurance News

17. 04. 2008 posted in: Travel Insurance News

Travel Insurance - Claims Soar

Despite costing an amazing £4 billion to complete the new Terminal 5 building at Heathrow airport has opened in a spectacularly disastrous fashion.

Due to administrative failures in the baggage handling sector travellers have experienced their worst nightmares with bags and property been lost without apparent trace. As a result travel insurance companies have experienced and massive surge in claims being presented during the past couple of weeks.

Policy holders take out these travel insurance policies specifically to cover them for such eventualities and the need to provide a high quality of customer service has been stretched to the limits for many insurance companies particularly those who deal directly with the niche market of travel insurance.

The Terminal 5 disaster is likely to cost the travel insurance companies millions in claims and the story is likely to continue for sometime as insiders claim “these administrative problems are just going to get worse until these admin and system errors are addressed”.

The story doesn’t end with the loss of luggage because due to this particular problem dozens of flights have also been cancelled causing the tour operators their own administrative and travel insurance claims nightmares.