Thousands were left stranded when Zoom collapsed
Most insurance policies will not cover airline failure
29 September 2008Not all standard package travel policies cover failure of tour operators or air carriers, claims the Association of British Insurers (ABI).
Thousands of passengers were stranded at airports in the UK and abroad when Zoom Airlines and the XL Leisure Group ceased trading, after failing to pay bills due to the current economic climate and rising cost of fuel, according to reports.
Some passengers who have travel insurance or booked their flights through an agent should be able to claim compensation for cancelled or delayed flights but many have been left empty handed, states Malcolm Tarling, a spokesperson for ABI.
"Typically, cancellation is covered when specified events occur, such as illness of yourself or a close relative, jury service or being made redundant," he said.
Those without insurance are most protected if they book by credit card with an ATOL-bonded provider as this will at least mean that should the worst happen then they will get compensation, claims Mr Tarling.
Zoom was the 24th airline in 2008 to close operations as a result of the current economic downturn.
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