Travel insurance row heads to court

But is her travel insurance valid?

Thousands of UK holidaymakers have been caught up in a legal row over who is liable for their insurance claims, which is now heading to court.

Up to 35,000 people are thought to be preparing for a trip abroad, unaware that they may have no cover from their policies.

And 4,000 returning travellers who have made claims totalling up to £2.5m are still waiting to find out if they will get any money back.

Lloyds of London helpline

Lloyd's of London travel insurance helpline number is 0800-917 5971 (open 0900-1730)

The insurance in question was sold through eight different brokers, often via travel agents.

The policies purported to be underwritten by the Lloyd's of London insurance market, but the Lloyd's syndicate says it never authorised its name to be used.

It is taking the case to the High Court on Monday to decide how many of the policies, if any, are valid.

Experts say the eight companies had no reason to suspect there was a problem, and acted in good faith.

'In limbo'

Travellers whose policy bears the name Lloyd's of London and was issued by one of the above eight may be affected.

They are advised to check with the agent who sold it to them before they travel and arrange alternative cover if necessary.

Susie Allan: Fears she has lost £7,500

Susie Allan, a customer of Atlas Travel Insurance, cancelled her £7,500 safari honeymoon after discovering she was pregnant and unable to take malaria tablets.

She and her husband were told they could claim a maximum of £6,000 - but were then told their policy was no longer valid.

Ms Allan told BBC News 24's Gate 24 travel programme she was feeling "helpless and cross" over the "major loss".

"We're in limbo wondering how we're going to get any of this money," she said.

Unusual situation

The eight brokers had been provided with the insurance from an intermediary agent, the Management Company (London) Ltd, which went bust seven weeks ago.

Holidaymakers are usually well protected from such problems.

The Lloyd's syndicate denies underwriting the policies

But Steve Howard, chairman of the Association of Insurance Intermediaries and Brokers, said the situation is complicated by the fact that Management Company London Ltd was a middleman.

"If this had fallen under a normal insurance company that had gone into liquidation, consumers would have some form of protection under the Insurance Protection Act," he said.

"Unfortunately this isn't the situation and until the dispute is resolved clients who have claims in the pipeline are going to have to wait until the decision is made."

However, he added that his "personal belief" was that "eventually they will get their money through one source or another."