Two major insurance companies have said they are refusing to cover customers who have suffered lost or delayed baggage in the chaos at Heathrow Airport's Terminal 5.

Direct Line and Churchill have stopped offering cover for baggage loss and delays on new travel insurance policies for air passengers who are using Terminal 5.

Customers of these two companies are now being advised to check their policies to see where they stand with the policy they hold.

A spokesman for the Royal Bank of Scotland, which owns both Direct Line and Churchill, said that passengers who bought policies before the baggage problems began at T5 will not be affected and will still be able to make claims. However, for insurance purchased since then may not pay out for lost or delayed bags or cancelled and delayed flights. For example, a customer who has annual cover will still be entitled to a pay-out.

The RBS spokesman added that the decision was only temporary, and that the situation is under "constant review". He added that the normal cover would be restored as soon as baggage delays cease at T5.

A spokesman from Direct Line said: ""It is a general principle of all insurance that it only covers unforeseen chance events. Once something becomes widely known like this it is no longer unforeseen".

Despite opening four weeks ago, the new £4.3 billion terminal is still working to clear the baggage backlog that built up due to a wide range of problems at the facility.

Lost T5 Baggage Insurance Policies

Despite the decision affecting Direct Line and Churchill insurance, other major insurers are still issuing insurance policies which include cover for baggage lost at T5.

These companies include Norwich Union, Saga Insurance and Insure&Go.

Norwich Union said: "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".

Saga Insurance commented: "The decision of some companies to introduce new exclusions for customers travelling from Terminal 5 is, in our view, an assault on common sense. Insurers that are introducing arbitrary exclusions of this nature will only encourage people to take out policies that are unlikely to meet their needs".

Whilst the airline should be the passenger's first port of call, if your suitcases or bags are lost, delayed or damaged, provided you have baggage cover on your policy, you should be able to claim. Just remember to report any loss to the airline immediately and get a Property Irregularity Report".

A spokeswoman for the Association of British Insurers said passengers should always contact their airline, rather than their insurer, for compensation if they suffer from lost or delayed baggage - because it was up to individual companies as to whether they continued to offer cover.

She said: "Insurance is there to pay for the unexpected, but some companies are taking the position that you can't help which terminal you fly out of and are still offering cover. Our advice is to check with your insurance provider".

Source - Airport International's London Reporter

Recent Related News Items:

Heathrow Airport Terminal 5 -

BA Announces Heathrow T5 Long-Haul Flights Delayed

Baggage System 'Working' At Heathrow Airport's Terminal 5

Baggage 'Chaos' at Heathrow Airport Terminal 5

Baggage Delays as Heathrow Airport's Terminal 5 Opens