How to check travel insurance policies: Which? reports four out of 10 don’t protect against strike action

Many travel policies don’t cover claims arising from strikes

British Airways planes at London Heathrow, where passenger service agents have voted to strike (PA Wire)

The consumer group Which? says that four in 10 travel insurance policies do not cover travellers for strikes by airport or airline staff. Researchers assessed almost 200 policy documents, and found that 78 did not cover the effects of industrial action.

Fortunately consumer legislation means that, in many cases, the consequences of strikes are dealt with by airlines and holiday companies.

These are the key questions and answers.

What did the research find?

Of the 199 travel insurance policies that were checked, 120 offered cover if travellers have to cancel a trip due to strikes. One of the remaining 79 had industrial action cover as an optional extra, while the rest did not provide for cancellation due to a strike.

Jenny Ross, Which? Money editor, said: “With many airlines warning of widespread disruption this summer and Covid cases on the rise, travellers should ensure they’ve taken out adequate insurance to cover any losses or unexpected costs they might face.”

What happens if a strike disrupts my trip?

In almost all circumstances, the airline is responsible for making good your journey.

For example, SAS has grounded flights today from London Heathrow to Copenhagen, Oslo and Stavanger because of a pilots’ strike. The Scandinavian airline must get passengers to their destinations on the same day if there is any way of doing so – ideally (from its perspective) on one of its flights that is still operating, but otherwise by paying for a ticket on another carrier.

In this case, British Airways has flights available from London to Copenhagen for £540 one way – a fare that is a problem for SAS, not you. The carrier advises passengers “to arrange alternative means of travel themselves and seek reimbursement from SAS”.

The same deal applies with all other existing and threatened industrial action – including easyJet and Ryanair cabin crew in various European countries, as well as 700 passenger service agents working for British Airways at Heathrow (two weeks’ notice is required of industrial action, so nothing will happen before 20 July).

And if there is no alternative flight on the same day?

The airline that cancels a flight – for any reason – must provide a hotel room and meals until it can get you to your destination. Again, it is likely that the carrier will not provide it, and you should keep all receipts. Alcohol is not included.

What if I am on a package holiday?

The picture is cloudier, but the presumption is that your holiday will go ahead: the airline must provide an alternative way of getting you to your destination. There is an extra layer of support from your tour operator (the travel firm that organised the holiday for you), which may well help find an alternative flight.

However, in extreme circumstances when no other flight is available, your holiday may be cancelled in its entirety – with a full refund due to you within two weeks.

How about airport strikes?

If they lead to a flight cancellation, the airline is responsible for your transportation and welfare. For example, this summer we have seen industrial action at Paris CDG by firefighters that have led to one runway being closed and dozens of flights to and from the French capital grounded. The airline must help you, whatever the cause.

I have booked hotels and car rental separately. What if there is simply no way for me to reach my destination in order to have the trip I’ve booked?

It’s July. Airlines are cancelling flights left, right and centre. Therefore some travellers may reluctantly conclude that they have to give up on their trip. The airline will provide a full refund for both outbound and return legs. The aspects for which travel insurance could be relevant are:

• You have booked separate airlines for outbound and return flights, and the inbound trip is going ahead normally – meaning you can’t get a refund.
• Your hotel and car rental providers may not offer a refund.
• Providers of pre-booked tours and experiences may not offer a refund.

In such a case, you should always ask if you can cancel without penalty. But if you cannot, you may be able to claim for consequential losses. Note that if you are offered a voucher for future use, from a travel insurance point of view, this counts as a refund.

What should I look for?

Columbus Direct has a traveller-friendly policy that is a good model of what cover to look for. The main category is “Travel Delay, Missed Connection and Abandonment”.

If a strike means “your flight, sea crossing, coach or train departure is delayed for more than 12 hours beyond the intended departure” then you are able to cancel and claim reimbursement up to the total cost (or the cover limit if this is lower). Of course any amounts that you are refunded must be subtracted from the claim.

You can also claim if, for example, a rail strike means that you miss your flight and have to spend hundreds of pounds on a new ticket.

Any catches?

Yes. If the strike has already been announced at the point at which you bought a ticket and/or took out the policy, your claim will probably be rejected.

What counts as a strike for the purposes of travel insurance?

Each insurer will have its own definition: for Staysure, for example, it is wide ranging: “Any form of industrial action, whether organised by a trade union or not, which is carried on with the intention of preventing, restricting or otherwise interfering with the production of goods, or the provision of services.”

This would cover “wildcat” (unofficial) strikes, where workers walk out even though their union has not instructed them to do so, and also action short of a strike such as an overtime ban.

What do I do if I am unhappy with the response of my travel insurer?

You can take your case to the Financial Ombudsman Service.

Do I get cash compensation too if my flight is cancelled?

That is unclear. The European Court of Justice, the ultimate authority in cases about air passengers’ rights rules, has said that “wildcat” or unofficial strikes count as extraordinary circumstances, and therefore do not qualify for compensation. There is no certainty about whether official strikes – which are far more common – qualify.

But Coby Benson, flight delay compensation solicitor at Bott and Co said: “Staff strikes due to pay are not considered an ‘extraordinary circumstance’ under EC Regulation 261 and therefore passengers who are delayed more than three hours or have their flight cancelled within 14 days are owed compensation of up to £520 per passenger.

“The courts have previously held that events such as these are well within the airline’s control and the management of unhappy staff is simply part and parcel of running any business.”

Much of the industrial action that takes place at airports involves ground handling companies. As these are contracted by airlines, they amount to a carrier cancellation, and may qualify for compensation.