Non-life insurance companies will take a slight hit due to recent flight disruptions in Europe. Claims will arise from overseas travel insurance policies which cover delay or cancellation of flights.
Most flights to and from Europe were disrupted for a week due to volcanic dust over the continent.
Overseas travel policies give a maximum cover of $1,000 and are likely to result in minor claims. They cover claims arising from delay or cancellation of trips due to unavoidable circumstances. Passengers will have to provide their bills to make a claim, say company executives. This is part of the insurance package offered to passengers travelling abroad. Other than cancellation of trips, travel insurance policies cover medical insurance, personal accident, check-in delays, loss of passport and baggage loss. Within the package, these claims have individual caps. Some cap check-in delay claims at $200, while all companies have capped the trip cancellation cover at $1,000.
“We have got some intimations of claim. Policy holders will have to present their bills or relevant papers. Just cancellation of a trip will not lead to reimbursement,” said Bajaj Allianz General Insurance’s head of reinsurance, TR Ramalingum.
“Claims are arising due to flight disruptions in Europe. We are getting enquiries from passengers,” said Tata AIG General Insurance MD & CEO Gaurav D Garg. Insurers have, however, managed to save a large amount because airlines will not be in a position to claim for loss of business under the aircraft insurance policy.
