T5 U-turn by insurer
Sunday 20 April 2008
Travellers using Heathrow's Terminal 5 faced more confusion last week following announcements made by Direct Line, one of the UK's biggest insurance firms.
On Tuesday, the firm said it might not be able to meet insurance claims for lost luggage and delayed flights by those using T5.
People who bought insurance before the baggage-handling problems started would still able to make claims, the insurer said, but policies purchased since then might not pay out.
A spokesman for Direct Line said: "Insurance only covers events the customer is not aware of at the time of purchase."
The insurer said it would restore the cover to new policies once the terminal was operating properly.
Direct Line is owned by the Royal Bank of Scotland (RBS). Other insurance brands in the RBS group, including Tesco and Churchill, did likewise.
However, on Thursday, facing heavy criticism, Direct Line did a volte-face, saying it would be covering all customers regardless of when they had taken out their policy. A spokesman described this as a "goodwill gesture".
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