Normally an airline would reimburse passengers for delays. However, in the case of a force majeure (act of God), they are not liable for those costs, as is the case with the recent disruptions caused by volcanic ash.
But if you had booked your plane tickets using your credit card, you would have been covered for expenses incurred by the travel chaos caused by the volcanic ash.
Most credit card providers automatically provide travel insurance when you purchase travel tickets. FNB confirmed that their Comprehensive Global Travel Insurance covers expenses due to delays including meals, drinks, travel costs and accommodation, if the airline does not provide them. Through its transaction base, FNB was able to identify those customers who were stranded abroad to find out if they needed temporary limit increases.
Chartis, the travel insurance company used by the Hippo group of insurance companies, also extended its cover for 30 days past the expiry date of its policy to cover extra travel time associated with flight delays. Usually, policyholders have to pay for an extension should their trip be delayed, but considering the circumstances, Chartis stepped in to ensure their clients were covered.
Read more news, blogs, tips and Q&As in our Smart Money section. Post questions on the site for independent and researched information.