Does this cloud have a silver lining?

In recent weeks, Iceland’s rumbling volcano has caused havoc for travellers throughout Europe. But, thousands of cancelled flights later, many travellers are realising that their travel insurance is of no use in this case.

15th May, 2010

In recent weeks, Iceland’s rumbling volcano has caused havoc for travellers throughout Europe. But, thousands of cancelled flights later, many travellers are realising that their travel insurance is of no use in this case.

Travel insurance customers left stranded by the volcanic ash ran into problems, because most policies deemed an erupting volcano to be an act of God, meaning it is typically excluded from cover.

This is the insurance industry’s way of...

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