Chartis has stopped selling travel insurance on behalf of grounded Tiger Airways.

“We stopped selling policies on (last) Monday and there is now a temporary stop on providing cover (for Tiger travel insurance),” a spokesman told insuranceNEWS.com.au.

“We are monitoring the situation and we will respond when we know what Tiger is doing.”

An exclusion in the product disclosure statement for Tiger Purrtection ticket and baggage travel insurance covers government intervention stopping the airline making a flight.

Tiger was grounded by the Civil Aviation Safety Authority on July 2 although the airline kept selling tickets until ordered to stop by the Australian Competition and Consumer Commission.

The authority is now seeking to extend the grounding until August 1.

The spokesman says Chartis is working to refund premiums on travel insurance taken out between the grounding and when Tiger stopped selling tickets on July 3.