Travel insurers face flurry of claims as Foreign Office queries travel to Mexico

Travel insurers face payouts for swine flu after the Foreign Office advised against travelling to Mexico.

LV= said so far it had paid out on a handful of claims for cancellations.

The ABI said there would be “a few” pay-outs, depending on the policy wording of each contract.

Stephen Haddrill, the association’s director general, said: “People who are concerned about travelling overseas should talk to their tour operator or air carrier about whether it is safe, and listen for any government advice. If people need to make alternative arrangements, travel insurance policies will usually cover the new destination.

“Travel insurance will normally cover the cost of cancelling a trip for a number of specified reasons, including illness and redundancy. If the government advises against travelling to a particular country or region, check your policy as some may cover cancellation costs in these circumstances.”

RSA has reduced working hours at its Mexico offices due to swine flu and Allianz has begun its business continuity management programme in the country.