Ruling forces rethink over ash cloud payouts

eyjafjallajokull-volcano-ash-cloud

A landmark decision by the Financial Ombudsman Service (FOS) could lead to a new round of payouts from insurers to air travel passengers affected by the ash cloud from Icelandic volcano Eyjafjallajökull in April 2010.

In December 2010 the FOS had originally ruled in favour of Mrs B, stating she should be paid her delay claim by her insurer as wind-borne ash constituted “poor weather conditions”.

However, the Ombudsman gave the insurer the right to request the case be dismissed so that it could b