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Sunday, 2 December, 2001, 01:57 GMT
Terror attacks hit travel insurance
Airport delays in the US may no longer be covered
Travellers could see insurance premiums rise by 20%
Holidaymakers are being warned to pay close attention to the fine print in their travel insurance as many new restrictions may have been included since September 11.

Policy restrictions have been introduced on a number of destinations, including the United States, following the attacks.

And the cost of covering yourself while abroad may rise by up to 20%.

The travel business was thrown into chaos in the aftermath of the US terror attacks, as international travel was brought to a standstill.

Insurers were congratulated for covering claims of travellers caught up in the disruption - even though their policies did not include protection against terrorist attack.

But since then many insurers have altered the terms of their coverage.

Some policies will no longer cover travellers to North America for cancellation or delays to their journey.

And countries like Pakistan and Israel may not be covered at all.

However it is hoped that the fierce competition in the industry will prevent predicted rises in the cost of coverage, by around 20%, from being passed on directly to consumers.

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 ON THIS STORY
The BBC's Quentin Somerville
"Travellers are being warned to play close attention to the fine print in their travel documents"
See also:

06 Nov 01 | Business
Threat to cheap package holidays
18 Sep 01 | Business
What now for tourism?
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