Banks¿ snub to ash cloud victims

By
James Coney
Last updated at 1:19 AM on 19th May 2010

Britain’s biggest banks are making U-turns on previous promises to help travellers stranded by the ash cloud chaos. In the past week Santander and HSBC have rethought their initial decision to pay out to customers affected by the travel turmoil. HSBC and First Direct, whose policies are underwritten by Aviva, had pledged to pay out to stranded customers even though Aviva wouldn’t. But this week its insurance division was involved in talks as to whether new customers would enjoy the same cover. Those who took out policies before April 15 would still get payouts. So until a final decision is made, travellers will have no guarantee that they will be covered. The other HSBC subsidiary, M&S Money, has policies underwritten by Axa. Axa is also not paying out - but M&S Money is understood to be making goodwill gestures to customers.

Financial headwinds: Victims of the recent ash cloud chaos may not receive payouts - despite earlier promises

Santander had told Money Mail last week that new customers would be covered for ash cloud disruption. But it has now revised its policy, too.

A spokesman for Santander says: ‘For customers who purchased or renewed a policy after April 15, or booked a journey after it was announced that the affected airports would be closed, we cannot consider claims relating to volcanic ash. ‘After April 15 the ash cloud was considered a known event and travellers have to take that risk.’ It means the list of banks and insurers that will pay out for cancelled holidays is growing ever shorter. Only Columbus, Direct Travel, John Lewis and Saga now offer assurances that claims will be considered.

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