News

Insurance indemnity amount payable to customers of JSIC „Seesam Latvia’’ due to air traffic disruption caused by the Icelandic volcanic eruption has reached EUR 7000

On the 6th of May JSIC „Seesam Latvia” had received already more than 70 claims for travel losses caused by the consequences of the eruption of the Icelandic volcano Eyjafjallajökull in connection with cancellation of flights. The total amount of claims received until now is EUR 7200.

From the 15th April, when the ash clouds generated by the volcanic eruption created serious problems in the European airspace, airline flights were cancelled, and airports were completely closed, “Seesam Latvia” has given hundreds of consultations to travellers from Latvia being abroad with recommendations how they should proceed and what alternative transport possibilities should be used to return home soonest possible.

Despite the fact that the law "On insurance contract" as well as the insurance companies travel insurance regulations do not make provision for any liability for losses caused by natural disasters, JSIC Seesam Latvia, as one of the major travel insurance companies in Latvia, decided on April 15, 2010 to compensate the loss of its customers, who had bought travel insurance programs where the flight delay or short-term flight cancellation risks were included. Unforeseen costs of use of alternative transport to return back to Latvia during the period of time when from April 15 till April 22 the European airports were closed and air flights were cancelled due to the volcanic ash clouds, are being compensated according to the insurance programs purchased and the insurance amount limits specified therein.

Although the situation in the European airspace has been normalized, the insurance experts predict that in the near future the total number of claims submitted could still grow as the volcano becomes active periodically. This creates a new safety-threatening air pollution and causes necessity to close temporarily Ireland's airports as well as cancel certain flights from other European airports once again. For example, in the evening of May 5 two flights from Airport Riga to Ireland were cancelled

People making preparations for travelling, now more seriously take into account the potential risks of delay, more carefully select insurance products, and more seriously consider the insurable risks. Forecasts indicate that the volcanic activity would continue also in the coming summer months. Taking into account this situation, JSIC Seesam Latvia, from May 15, 2010, will offer customers the option to purchase an extended travel insurance program, which includes the risk of compensation of unforeseen costs in connection with the use of alternative transport to get back to Latvia in situations where public transport trips are cancelled due to natural disasters.

The extended insurance program will be available at JSIC Seesam Latvia 'offices, travel agency and insurance broker offices. 

About JSIC “Seesam Latvia”

„OP – Pohjola Group”, which is the shareholder and owner of JSIC „ Seesam Latvia”, is one of the largest and leading financial and insurance groups in Finland. Pohjola Insurance Ltd, a non-life insurance company which is owned by „OP – Pohjola Group”, was founded in 1891, and it is both the oldest and by its 27% market share also the largest insurance company in Finland.

The long-term safety rating conferred to Pohjola Insurance Ltd by the international rating agency Standard & Poor’s is A+ (strong).

Additional information: Dace Gertnere

Marketing and PR Department Director

JSIC "Seesam Latvia"

Marketing and PR Department

Vienības gatve 87H, Riga, LV-1004, Latvia

Tel. No. +371 67 06 10 29

Fax No. +371 67 06 10 22

dace.gertnere(a)seesam.lv, http://www.seesam.lv