Insurers of airlines say that they cannot claim for losses incurred due to volcanic eruption.
The volcanic eruption of Eyjafjöll in Iceland has caused havoc in Europe and the rest of the world.
Aircraft have been grounded in Europe as a cloud of volcanic ash, which is silica-based material and highly abrasive, has entered the atmosphere. The ash can harm visibility and also clog aircraft engines and causing them to catch fire.
Questions have been raised about whether airlines might be insured for such an event. Insurance companies say since there is no physical damage to the asset, airlines will not be able to make a claim.
“Successful claims against standard airline liability insurance policies due to delays as a result of the volcanic eruption in Iceland are unlikely. This is a natural event and there has not been any actual damage to aircraft or property at this stage,” observes Magnus Allan, a spokesperson for Aon Aviation.
“Equally, this is such a rare event that it is unlikely to have been covered under business interruption policies. Even if specific coverage was offered by the insurance markets, it is likely to have been prohibitively expensive.
