In the light of the recent events in Europe and the trends among Latvian travellers, since May of this year BTA Baltic Insurance Company (hereinafter - BTA) has expanded the range of insurance options available to travellers, by providing compensation for losses, which by now had not been compensated by any insurance company in Latvia. In case a terrorist attack has occurred at the place of the travel destination and for this reason the traveller wants to cancel the previously planned trip or to interrupt it, BTA will reimburse the losses associated with the cancellation or termination of the journey. Also, BTA will indemnify against losses associated with cancellation of a trip when the traveller decides not to go to the previously scheduled trip, the main purpose of which was to visit a concert, which was cancelled at the last moment.
The terrorist attacks that took place in several European countries, as well as the threats that they may strike again, have made many would-be travellers to change their plans. Last year, many people changed their travel destinations, choosing a trip to a country where there is no threat of terrorism or it is relatively lower. Unfortunately, the events during the past half-year indicate that the threat of terrorism is impossible to predict.
"Travel insurance products and services continue to evolve, they are adjusted to the changing market demands and the current situation in the world. Terrorist attacks have occurred in several European countries, and, affected by these events, more and more people are interested in opportunities to get insured against losses that may arise in such situations. Given the interest and demand, BTA has recently significantly improved some travel insurance programmes, providing that a terrorist act is not considered an exception. Assessing the risks that may arise for travellers due to terrorist attacks or their threats, BTA is to compensate the travellers not only for medical expenses, repatriation, medical evacuation and other damages related to traveller’s health and luggage, which could occur as a result of a terrorist act, but also the opportunity to receive compensation in connection with cancellation or termination of a planned trip, if a terrorist attack occurs at the point of destination of the planned trip in Europe shortly before the trip or during it. Indemnification for cancellation or termination of a trip due to a terrorist act until now was not offered by any insurance company in Latvia. Taking care for the safety of people, it is important to provide people the opportunity to cancel a planned trip or to interrupt it, to compensate for the losses if in the country, which is the point of the trip destination, in case the situation in that country has become insecure," - said Ivo Danče, BTA Baltic Insurance Risks Underwriting Department Director.
As part of the expanded travel insurance program, BTA will reimburse all sorts of losses that arise to travellers in connection with a terrorist act occurring in Europe, recognized as such by public authorities of that country, and because of which the provision of services to tourists at the travel destination is interrupted. Within a certain amount, BTA will reimburse for medical expenses, including medical expenses in the country of residence after returning from a trip, repatriation or medical evacuation costs in connection with the theft or loss of passport, ID-card, and luggage, costs due to delayed flight, flight cancellation or denied boarding, as well as costs associated with the termination or cancellation of travel. In case of trip cancellation, BTA will compensate, within a certain amount, the damages for the booked and unused air tickets, as well as fines for the cancelled booking of hotels or car rental at the destination of the planned trip.
BTA will indemnify for cancellation of a trip due to a cancelled concert abroad
Despite the recent terrorist attacks in Europe, the tourism industry keeps expanding. People travel to see the architecture and enjoy nature, and not just that, they also increasingly use opportunities to visit various public concerts, operas and theatre performances in Europe and other countries around the world. Although, due to various reasons, a number of concerts have been cancelled during the past year in Europe, such as Eros Ramazzotti’s concert in Tallinn, Janet Jackson’s concerts in Tallinn and Vilnius. Also, the European concerts have been cancelled in the world tours of such groups as Nickelback, Black Sabbath and AC/DC. Cancellation of these concerts at short notice brought much disappointment to music fans for one thing, for the other, it also caused financial losses of couple of hundred euros to the tourists, who had to cancel the previously scheduled trips.
"A number of concerts get regularly cancelled in Europe each year for various reasons. People are trying to get back the money spent on the purchase of tickets from the concert organizers, but there are often losses with regard to previously booked tickets, places of accommodation and rental cars abroad. The number of travellers, whose purpose is event tourism or to visit a public concert abroad, keeps increasing, considering this and the fact that some concerts get cancelled at the very last moment, BTA has expanded some of its travel insurance programmes, including provisions for compensation to tourists due to cancellation of trip when the sole purpose of the trip has been visiting the concert and the planned concert abroad was cancelled at the last moment. So far, no insurer in Latvia has offered to insure against such a risk," notes Ivo Danče.
BTA is one of the largest indemnity payers in Baltics. Last year BTA has disbursed an average of 398 thousand euros each business day in insurance indemnities in the Baltic States, which makes it 50 thousand euros every working hour.
AAS BTA Baltic Insurance Company was founded in 2014, after reorganisation of BTA Insurance Company SE, performing successful division of the company according to the geographical distribution of its business operations: Baltics and rest of Europe. BTA Insurance Company SE, being a mother company of AAS BTA Baltic Insurance Company, has been successfully operating on insurance market for more than 20 years, in 2009 becoming the third biggest insurer in Baltic States. The international growth of BTA is proven by the TOP 500 of Central European Companies issued by the international auditor company Deloitte for year 2013, where BTA ranks among 50 largest insurance companies in Central Europe.
In December 2015 AAS BTA Baltic Insurance Company concluded a contract about attraction of an investor – one of the leading insurers in Europe – Vienna Insurance Group AG (VIG). The deal shall be completed after receiving all the necessary permits from the authorities, supervising the operation of the industry, which might take place in the first six months of 2016.
Public Relations Manager
AAS BTA Baltic Insurance Company
Phone: +371 67025661, mobile: +371 27828796