Airport, Estonia, Financial Services, Insurance, Legislation, Transport

Trip cancellation insurance should help cover the losses that occur as a planned trip is cancelled for some reason. Salva Kindlustuse AS marketing manager Urmas Ööbik said that insurance works on the principle that it is possible to insure against unexpected and unforeseeable events.

"If you take into account messages the state has issued and the readiness for a negative decision of the European Commission, it is no longer an ordinary unexpected and unforeseeable event," said Ööbik.

Ööbik said that the insurer had to take into account the likelihood of the risks becoming reality and it was therefore decided to stop offering insurance against Estonian Air's insolvency.

The Estonian state recently created a new company that should take over Estonia's flight connections in case the European Commission decides that the state aid granted to Estonian Air has been illegal and the Estonian national carrier goes bankrupt as the result.