A UK small claims court decision to award compensation to a passenger stranded by the Icelandic volcanic ash cloud last year is not expected to set a precedent in Australia.

Former lawyer Clive Tucker was paid £1009 ($1617) after taking his case to Yeovil County Court when his insurer refused to pay his claim because the ash cloud was not considered a weather-related incident.

However, the court ruled the disruption could be classed as weather-related.

The Financial Ombudsman Services told insuranceNEWS.com.au that although this case doesn’t set a precedent as it was held in a small claims court, it is possible it could uphold individual cases on similar grounds.

“However, one major insurer believes there may be wider legal principles at stake and that a legal test case might be necessary,” a spokesman said.

“We are also aware that insurers are taking different stances in relation to paying out these claims, with one major insurer indicating that they agree with our stance on a number of cases.”