Heathrow Terminal 5 insurance turmoil

Passengers flying out of Heathrow’s Terminal 5 are being advised to check their travel insurance policy carefully after several firms said they would refuse to pay out if customers experience problems with baggage.

Direct Line, Churchill and Royal Bank of Scotland have stopped offering cover – on a temporary basis - for lost luggage or delayed flights to travellers going through Terminal 5.

This hardline stance has attracted criticism. Richard Mason, head of insurance at comparison site Moneysupermarket.com, said that ‘Lost baggage is absolutely an issue for insurers. It's pretty poor that some insurers are making new exclusions just when customers need the most protection. Most standard insurance policies also provide cover if you are delayed for more than 24 hours and you choose to abandon your holiday.’

Some insurers, on the other hand, are promising to provide cover to passengers using the troubled terminal, such as Saga and Norwich Union. A spokesman for the latter stated, ‘We are not making any changes to exclude claims from customers who travel from the terminal. We don't think it is fair to penalise customers for the problems at Heathrow as they often don't have the choice of which terminal they will fly from.’