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Cancellations drive UK travel claims payout to 7-year high

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UK insurers paid out £385 million ($686 million) in travel claims last year, the biggest amount since 2010 when the Icelandic ash cloud cost the industry £455 million ($811 million).

A significant rise in cancellation claims, caused by airline disruption and restrictive bad weather, pushed up the claims payout, the Association of British Insurers says.

Value of claims for trip cancellations rose 11% to £145 million ($258 million).

The industry received 510,000 claims last year, up 30,000 from 2016.

Medical expenses accounted for 52% of claims costs, cancellations 38% and lost baggage or money 4%.