Volcano ash disruption - not all passengers receive insurance pay-out

THE volcano ash disruption showed the problem with buying cheaper insurance policies, according to one provider

THE volcano ash disruption showed the problem with buying cheaper insurance policies, according to one provider.

Insurefor.com has warned consumers that buying insurance policies based purely on price could lead to costly losses when they come to make a claim.

It reports that many travelers were underinsured when planes were grounded and did not receive a pay out for their claims.

Antony Martin, managing director of insurefor.com said: "Part of the problem with the UK travel insurance industry was exposed in the past week as many of the cheaper policies didn't cover or only partially covered stranded travelers. "

He said most policies are written for specified risks only and are not designed to cover 'all risks.'