Travel insurer Club Direct has done an about-turn over its policy of refusing to cover people caught up in terrorist attacks in Spain.

Following a report in Insurance Times, the company has extended its medical cover to include people caught up in terrorist incidents.

Basque separatist group ETA has been waging a bombing campaign in Spanish tourist resorts since March.

Last week, 13 people were injured when a bomb went off in the popular northeastern resort of Salou, near Tarragona.

Club Direct managing director Brent Escott said: “Costs can range from a few thousand pounds for a minor injury to over a million for protracted medical treatment and repatriation.”

Until this week, Club Direct was excluding terrorist incidents from all its policies.

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