Direct Line: Cover for collapse of airlines

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Direct Line: Cover for collapse of airlines

Thu 17th Dec 2009

Direct Line has announced that its travel insurance polices will cover passengers if their airline goes bust while they are on holiday.

Following the collapse of Flyglobespan, the insurance provider has announced it is to cover any financial loss sustained by passengers should the carrier go out of business.

In addition, the failure of car rental companies, hotels, excursion providers and even theme parks are covered by their insurance policies.

Jennifer Thomas, spokesperson for Direct Line travel insurance, said that many consumers are turning to getting their flights direct from the airline in a bid to save money.

However, this means that they are not covered by protection schemes such as ATOL, meaning they have to foot the bill for flights home themselves if there is a problem with the airline.

Direct Line also announced it is to cover anyone flying with British Airways who purchased their insurance policy before December 14th, should their flights by cancelled due to the strike action.

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