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AA travel insurance backtracks on volcanic ash promise

AA travel insurance, an offshoot of the well-known motoring operation, has today reneged on a promise to cover the costs of travellers caught up in the volcanic ash saga. Initially the company had promised to cover additional travel and hotel expenses for customers with AA travel insurance but this promise has been withdrawn after the company's insurance underwriters refused to pay out.

So despite the fact that many travellers are still stranded overseas, expecting to be reimbursed for their additional costs, they will be sorely disappointed once they return to the UK. The company is suggesting that travellers caught up in the volcanic ash saga attempt to reclaim any additional costs through their airline, which apparently under European law are obliged to reimburse customers.

In a rather bizarre quirk of fate it has been announced today that many airlines in Europe could be in line for significant compensation from the European Union which has been quoted as high as £2 billion. So rightly or wrongly taxpayers could end up reimbursing airline customers who have been left out of pocket due to the volcanic ash situation. No matter what the situation or cost it seems that European, and especially UK, taxpayers always end up footing the bill for any disasters.

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