Icelandic Volcano & Consumers’ Rights
22nd April 2010
On 20 April 2010 the Eyjafjallajökull Volcano in Iceland erupted, pouring a vast ash cloud into the sky over Europe, and causing havoc for travelers across the continent.
Airlines’ Duties to Travelers
If you are flying with an airline based in the European Union, then the company will be obliged by law to try to put you on an alternative flight or to find an alternative way home for you, and to refund you for any cancellation.
If your airline is based outside the EU, then you may not have the same level of protection but should nonetheless check the terms and conditions to see if you have a right of claim.
ATOL Package Holidaymakers
If you booked a package holiday, then you will be covered by the ATOL (Air Travel Organisers’ Licensing) Scheme as well as by the Package Travel, Package Holidays and Package Tours Regulations 1992, which confer protection in the event that a traveler is stranded abroad, e.g. flight tickets, accommodation and sustenance.
Travel Insurance Claims
You should check your insurance policy to see if you are covered for this kind of event. If not specifically excluded you should make a claim. Even if you think you might be excluded, it could still be worthwhile making a claim since some insurance companies have said they will cover the event as a goodwill gesture anyway.
You should write a list of all your losses, and send this to your insurers with copies of receipts and other relevant information. Insurers will usually only pay for reasonable expenses directly resulting from the event, e.g. flight tickets, accommodation and sustenance. That said, if you are unsure if a particular expense is reasonable, it might be worthwhile including anyway.
According to the Association of British Insurers, travel insurance should not exclude liability for an 'Act of God', therefore your insurers should not reject your claim on this basis.
Moreover, your insurers should not insist you make a claim against your airline or credit card company before making an insurance claim.
However, you should pay particular attention to any limits on indemnity and to any time-limits.
If still stranded abroad, report the matter to your insurers as soon as possible and keep receipts for all reasonable expenses.
What if Insurance Claim is Rejected?
If your insurers refuse your claim, you should request a written explanation under reference to the relevant clauses of the policy. If not satisfied with the explanation given, then you may lodge a formal complaint.
Your insurers should respond to your complaint within eight weeks, after which you may refer it to the Financial Ombudsman Service.
If not satisfied with the decision of the FOS, you may wish to raise a court action.
Credit Card Claims
If you paid for flights and/or holidays with a credit card, you may make a claim against your card provider in respect of reasonable losses up to £30,000.
Debit Card Claims
If you paid for flights and/or holidays with a debit card (e.g. switch), then you may be able to recover some money through the Chargeback Scheme. Chargeback allows you to reverse a transaction if you are not happy with goods or services (or if your card has been used fraudulently). Although not a legal remedy, nonetheless it forms part of the Visa Scheme Rules to which participating banks subscribe.
Unpaid Wages
If you have missed work days because of the event and your employers are refusing to pay for this time, you should check your contract of employment. If you are not entitled to wages, then you may wish to consider an insurance claim (see above), but your prospects of success in such a venture would depend on the terms and conditions of the insurance policy.
Compensation for Inconvenience / Spoilt Enjoyment of Holidays
Since the eruption of Eyjafjallajökull was not foreseeable, it is unlikely that anyone would be entitled to claim compensation for inconvenience or for spoilt enjoyment of their holidays as a result.