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Monday 18.12.2017 | Name days: Klinta, Kristaps, Kristofers, Krists
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Latvian insurers not refunding trips cancelled due to volcano eruption

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Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RUUnlike in Western countries, the Latvian insurance market is not offering to compensate for flights cancelled due to volcano eruption and the refund possibilities are limited only to emergency return flight expenses, indicates, Agris Auce, head of the Latvian Professional Insurance Broker’ Association.

Travel insurance available in Latvia does not cover financial damages caused by flight cancellations and delays, in form of lost profit, contractual responsibility, etc.

It is important to take into consideration that when the return flight is delayed it is necessary to extend the travel insurance policy as well (regardless of whether it covers the volcano eruption risks), because in most cases, the policy terminates on the specified date even if the trip was delayed, the expert underlines.

In 2010, after the Eyjafjallajokull volcano eruption in Iceland, insurance companies decided on what to refund and whether to compensate at all damages caused to private entities and companies. This year, insurers have prepared their insurance conditions in advance and we call for timely assessment of volcano eruption risks.

Risk analysis of damages that may occur to travellers as a result of volcano eruption shows the potential losses are divided into several groups: unused hotel reservations and other booked and paid travel components; cancellation of the whole trip, unused tickets in other flights not directly affected by the volcano, but still missed because of the delay.

Travellers affected by the volcano face volcano emergency return costs and emergency accommodation expenses abroad (hotel rooms, food and so forth) as well as travelling allowances. Moreover, cancelled or delayed flights can also cause financial and contractual losses, as well as lost profits, Auce says.

We have analyzed the conditions of the most popular travel insurance companies in Latvia. ERGO and Balta do not cover volcano risks at all. Seesam’s most expensive travel insurance (Gold extra), which includes the flight delay risk, covers costs of emergency return to Latvia. Baltikums Biznesa Plus or VIP programmes offer partial refund of the alternative option of returning in Latvia.

Also, IF P&C covers some of emergency return costs. Travellers relying on banks’ automatic travel insurance or policies bought together with other services must be especially careful, because often traders have created a false impression of what this insurance covers, as usually the policies do not offer accessible and clear insurance conditions, the expert indicates.


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  1. Ruth.lt says:

    Well, such events as volcano erruptions or earthquakes are not the most usual, at least in the Baltic region, so insurers seem to oversee them.

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