Scheduled Airline Insolvency Failure

gmoorfoot

I have had an annual holiday insurance policy with the same company for several years.
I have just had this year's renewal advice and, as well as the expected new exclusion for coronavirus claims, they are no longer covering "scheduled airline insolvency failure".
Does anybody know if this is a new trend that other companies are doing too?

Browntoa

I'd say yes.

They are considering the risks to be too high to insure

Alan_Bowen

I suspect that may be the case, you used to be able to get cover at protectmyholioday.com and that still appears to be the case, dependent on the airline of course

maman

I recently had a refund because of the failure of Flybe. That was covered by ATOL so I didn't need to go to my insurance company. My understanding of ATOL is that it's a fund set up by the airlines which we pay for indirectly. Will that continue?
ETA - I had a hotel and flight booked so may not be covered if just a flight. 

Alan_Bowen

ATOL has nothing to do with airlines who don't pay a penny towards their own insolvency protection. Tour organisers who sell packages and agents who sell air tickets that are not issued immediately at the time you pay for the ticket, pay £2.50 per person into a fund called the Air Travel Trust run by the CAA. The ATOL scheme requires the company that issues the ATOL Certificate to replace flights from airlines that fail or offer a full refund of the whole price. The travel industry has been pleading with the government for more than 10 years to introduce a similar system to protect those that buy tickets direct from airlines but it falls on deaf ears. there are likely to be a number of airline failures in the near future, it may push the government a little further down the road but after Monarch and Thomas Cook Airlines, nothing has happened so getting airline failure cover if you don't have ATOL protection can still be a good idea for a few pounds

leylandsunaddict

Did it used to be covered in a separate section or did it used to come under the travel disruption section?