How the eruption in Iceland is effecting Travel Insurance – Are you covered?

With the new eruption from Grimsvotn in southeast Iceland (Iceland’s most active volcano), there is chaos once again, for airlines and their passengers looking to travel. Word from the Association of British Insurers (ABI) is that travellers are advised to contact their travel agents and airlines for further information.
If a cancellation occurs then a full refund should be given. It is also advised that passengers should check their travel insurance policies to check their cover and entitlement.
Interestingly, since the 2010 Volcano eruption in Iceland searches made on the internet for travel insurance looking for comprehensive cover has gone up to an all-time high of 900,000. It was due to this event that it became possible to purchase insurance cover for an eruption happening again.
Director of Professional Insurance Agents Graham Hearsey (Head of the Professional Indemnity Department) released guidance on the matter stating that any cover you already have from your insurance policy cannot duplicate compensation already given by the airlines for the disaster.