ABI takes tough stand with BA over compensation claims

The Association of British Insurers (ABI) has become embroiled in a row with British Airways (BA) over who should foot what could be a hefty bill relating to compensation resulting from the airline’s recent computer systems outage, which affected 75,000 passengers.

The airline had originally promised to compensate customers who had been delayed by paying expenses related to the delay in addition to EU compensation worth up to £600 a passenger for delayed or cancelled flights.

But the online form that BA directs customers to for them to claim these expenses has been directing them to claim on their travel insurance in the first instance.

This has prompted the ABI to issue a statement stressing that travel insurance policies only usually kick in if customers are unable to claims from another source.

“If you have been affected by the recent British Airways (BA) computer systems failure you may be entitled to compensation for disruption and additional expenses. In the first instance you should seek compensation from British Airways,” the trade association said in a statement.

“This is because EU flight compensation regulations require airline operators to provide compensation to passengers that suffer long delays or cancellations in circumstances like this.

“If you have travel insurance you may be covered for some expenses (such as the cost of food while delayed at the airport), usually payable where you are unable to claim them back from another source, such as the air carrier. So, in the first instance, you should make any claim for these to BA.”

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