Do you really know what your travel insurance covers?
This week, passengers faced cancellations and lengthy delays on flights due to the Middle East conflict, with routes to major cities cut off across the globe.
While operations in Dubai and Qatar have resumed and airspaces reopened, it's times like these that it pays to know exactly what your travel insurance covers
We spoke to the experts to find out what you're entitled to when a conflict breaks out or a natural disaster unfolds.
Does travel insurance cover cancellations due to war?
In short, no.
That's what Wendy discovered after buying travel insurance for her adult son weeks before the conflict in the Middle East.
Stranded at Doha airport after winning a European holiday, and despite getting a full refund for the cancelled flight, Christopher was told he would have to pay the difference for an alternative ticket with another airline.
"We were really shocked. I can understand war and unrest is a very top-tier issue, but it's still interesting how they can get around it because it falls under something that's outside of your control," Wendy said.
It's a situation insurance expert Jodi Bird from consumer advocacy group CHOICE said was far more common than many people realised.
"Pretty much across all policies there's a blanket ban," he said.
"There's no policies that CHOICE are aware of that will cover claims resulting from war."
Why isn't war or unrest covered?
It's pretty straightforward, according to Mr Bird.
It's all about the bottom line.
"Travel insurance generally doesn't like to cover things like war because it costs too much money," he said.
"For some reason, they've decided that war is kind of a blanket ban across pretty much all policies."
What if I take out 'top tier' insurance?
Put simply, it doesn't make a difference.
You won't be covered regardless of the premium you're paying, Mr Bird said.
Even the most expensive policies don't offer protection when conflict breaks out overseas.
"You might find some variation in things like a pandemic — there were a lot more insurers that covered for pandemic before we had one," he said.
What if you've taken out insurance before the conflict?
Unfortunately, timing doesn't help.
Wendy's family had no inkling there was a risk when they booked.
"In what way, in our wildest dreams … a transit flight through Qatar, which thousands and thousands of passengers are doing around the world every day, would you ever consider that there's going to be a war there?" she said.
The Insurance Council of Australia's deputy CEO, Kylie McFarlane, said it doesn't matter when the policy is taken out.
If there is no conflict or war at the time of purchase, the fine print still excludes any claims arising from those events.
What about natural disasters?
It depends on your level of cover, but in many cases you may be protected.
Natural disasters like floods, cyclones or bushfires are treated differently to war or a conflict.
"Extreme weather events may be an inclusion," Ms McFarlane said.
"It all comes down to the insurance policy and the provider, so if you're concerned, speak to your insurer."
Can I make a complaint if my claim is denied?
Absolutely — and don't give up if your claim is knocked back.
"You should not accept that as the last port of call, unless you absolutely agree with them," Mr Bird said.
"The first thing you need to do is raise a complaint to the insurer themselves and ask them to revisit your claim. And if they don't give you a satisfactory answer, you can escalate the complaint to the Australian Financial Complaints Authority."
Wendy reached out to the insurance company, but they simply directed her to the clause on her policy showing that war or unrest made any claims null and void.
"It's not one of those things that they even raise for you in the beginning, and even if you'd looked at the exclusions at the back, it still wouldn't occur to us," she said.
What to look for when buying travel insurance
Start by looking beyond the top-line benefits on the website and dig into the exclusions.
"Every product disclosure statement has a section called 'general exclusions' — that's a bit that is good to read," he said.
"That will give you an understanding of what they may or may not cover — big events like war, pandemic, terrorism, civil unrest. That will give you a good idea of what it is that you're actually buying."
So — is travel insurance still worth it?
Yep.
"Travel insurance is definitely worth it — especially just for the medical cost line," Mr Bird says.
"It's worth it basically all the time for overseas travel. You will need travel insurance to cover the medical and repatriation costs if you have a problem overseas. Those are the kinds of things where you can really get into a lot of trouble financially if you're not covered."
While Wendy's son was able to get a refund for the cancelled flight, they weren't able to pay out the difference of a more expensive flight for him to get to Europe.
Or the extra costs associated with travelling from a different city to his intended destination.
Wendy has a message for other travellers .
"Beware, and understand that you can fully pay for your trip and be prepared, and you can buy your travel insurance, and then still you have to be prepared to cover all the costs yourself if something goes wrong," she said.
