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Travel insurance rarely covers airline failure

2 July 2010

Only a quarter of travel insurance policies offer cover if the policy holder is stranded because their airline has gone bust, according to a new study.

The research by Defaqto found 77% of travel insurance policies do not cover airline failure.

Even insurers that cover airline failure may only offer a refund for the missed flight, and not for other components of a holiday such as accommodation and pre-booked activities.

source: Finance Markets

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