The world’s largest publicly traded property and casualty insurance company, Chubb, has launched a new insurance policy that will cover you for the costs associated with flight delays.
Flight Delay Insurance is a new type of insurance coverage for air travellers that works in conjunction with an innovative app called Chubb Connect.
The app – powered by United Networks, an Australian global connectivity, engagement and payments platform provider – not only makes the process of insurance simpler, but also offers a range of value-added services, such as access to a global network of wifi hotspots and SOS alerts.
Flight Delay Insurance provides fixed compensation for travellers when their flight is cancelled, diverted or delayed.
While a standard travel insurance policy will only pay you for inconvenience and costs associated with a flight delayed for more than six hours, Flight Delay Insurance will pay out a fixed amount on a delay as short as 30 minutes. Any delays ranging between 30, 45 and 60 minutes will trigger a $100 payout, and flight cancellations and diversions automatically generate a payout.
Payments are usually processed within an hour or within 72 hours of arriving at the destination airport and can help affected travellers cover the cost of accommodation, food or entertainment while they wait for their flight.
Using FlightStats data, delays are assessed in real-time by the insurance company Swiss Re, and payments are made directly into the customer’s PayPal account without the customer even having to file a claim.
“Flight delays continue to be the top incident disrupting travel plans for today’s travellers,” said Donna Dorairajoo, Chubb Asia Pacific’s Head of Travel Insurance.
“With more air travel, Chubb recognises their need for tailored insurance protection and efficient service. Flight delay insurance is timely in meeting the demand for relevant and affordable insurance. Without the need to file a claim or submit the supporting documents to prove a flight delay, Chubb offers an enhanced customer experience in our digitised world.”
Would you pay for flight delay insurance? What do you think of this idea? Should all insurers offer this service?