Delays the main cause of insurance claims

Updated: 2012-08-17 08:09

(China Daily)

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Flight delays were the main reason why customers sought compensation from their travel insurance policies, Ctrip.com International Ltd, China's largest online travel service provider, said on Thursday.

More than 70 percent of the claims made by Ctrip's customers resulted from flight delays, which were on the rise recently due to unfavorable weather conditions, the Shanghai-based company said in a press release.

In July, the company received more than 500 claims from groups and individual tourists who bought travel insurance and requested compensation after their trips were affected by flight delays.

Ctrip said since the start of this year, its customers have received a total amount of financial compensation of nearly 2 million yuan ($314,100), and the number of customers' claims has almost doubled since the same period last year, signaling a trend of growing public demand and concern over travel risks.

The delays occurred both on domestic flights and international ones, Ctrip said. Tourists who bought insurance can get compensation ranging from 200 yuan to 1,800 yuan.

The insurance, which costs about 30 to 50 yuan for long-distance travel within China, allows travelers to claim for certain financial compensation if their planes were delayed for more than four hours due to weather conditions, mechanical failure of aircraft or air traffic control.

Currently, Chinese airline companies usually set their own compensation standards based on the specific situation.

(China Daily 08/17/2012 page5)