What does scheduled airline failure mean?
Often known as Scheduled Airline Failure Insurance or SAFI, this type of coverage is your protection against airline insolvency. With this travel insurance coverage in place, customers can be assured of reimbursement for any irrecoverable cost of unused flight tickets or the extra cost of a one-way flight ticket, essentially allowing you to complete your trip without any hassles.
Who is this coverage is useful for?
This travel insurance benefit is becoming more popular in the marketplace and a customer should always check with their provider to confirm that this cover is provided. This cover can be beneficial for:
Holiday goers who have booked their flights & holiday packages separately.
Travellers who have made all the flight, hotel & travel arrangements themselves.
It is also important to note that there are certain circumstances, wherein travellers are automatically protected. They are as follows:
If you have booked a flight & a holiday package via an Air Travel Organisers' Licensing (ATOL) registered Travel Company, you will not need to ask for this coverage separately. Most travellers, though, book their flights through third party websites. So, you must verify that your travel agent or travel website is a member of the ATOL scheme to ensure your own safety.
If you have purchased your flight bookings via your credit card, then you are protected under the Consumer Credit Act, 1974. This protection, while offering you the certainty of a refund, it may take several weeks to receive the applicable refund.
How does it benefit you?
Taking into consideration the financial threat that is currently looming over most airlines, it can be a prudent choice to invest in a travel insurance policy that covers Scheduled Airline Failure. By researching about this form of travel insurance, you are assured of a certain degree of security. This assurance includes:
Receiving a specified amount to purchase new flight tickets in case of liquidation before your departure. Alternatively, your policy will pay the irrecoverable flight costs if you have to cancel your travel plans.
If the airline you are flying with goes bankrupt while you are travelling, your travel insurance will cover the cost incurred for booking an alternate flight for your return trip.
The traveller will need to provide documents to make a claim, often the following may be asked for in support:
Full details of the travel itinerary supplied to you.
Your unused travel tickets.
Receipts or bills for any transport costs claimed for.
An excess may be payable and details of this will be shown in your policy wording.