Australian travel insurance estimates volcanic related insurance claims over 8 million

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Australia’s largest travel insurance provider said on Monday the company expected claims relating to the volcanic ash cloud over Europe to top more than 8 million Australian dollars (About US$ 7.35 million).

Cover-More Travel Insurance Australia chief executive David Ferguson said travelers who purchased their policy before April 16 will be covered.

“With the magnitude of the disruption of flights we expect claims to exceed 8 million Australian dollars and this number will continue to grow as the period of disruption extends,” Ferguson said in a statement.

Cover-More, whose policies are sold through travel agencies such as Flight Centre, Harvey World Travel, STA Travel, Travelscene American Express and Travelers Choice, has been receiving more than 2,500 calls a day from customers anxious to find out whether they are covered.

Ash from eruption of Iceland’s Eyjafjoell volcano last Wednesday has stranded millions of air travelers across the world after European airports were shut down.

An enormous cloud of fine mineral dust particles has now stretched from the Arctic Circle to the French Mediterranean coast, and from Spain into Russia.

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