What are “unforeseen circumstances”?
…and when are you covered for travel delays, alternative transport and cancellation?
Provided that you purchased your policy before you became aware of the circumstances (or they were published in the media), commonly covered scenarios include:
Bad weather or natural disasters
If your flight or cruise is cancelled due to severe weather or a natural disaster, such as a volcanic eruption, tornado, or bushfire, you may be able to claim for transport, accommodation and other pre-paid expenses. Most insurers also offer cancellation cover if your home in Australia is affected by a natural disaster, and you need to defend it or if it is rendered uninhabitable by a flood, fire, or explosion.
Sickness or injury
If you become injured or ill and become unfit to travel, or if you have to return home if a medical practitioner notifies the insurer that you are unfit to continue with your trip. You will need this in writing and it generally cannot be from an undeclared pre-existing medical condition.
Sickness or injury of a family member
If you need to return home or cancel a trip because a family member is unwell or there has been a death of a close family member. This is subject to limitations - most insurers do not cover if the relative is over 80-85, if they were hospitalised due to a pre-existing medical condition, or the relative resides outside Australia or New Zealand. Check out our guide on family emergencies for more.
Strikes, civil unrest or riots
If a strike, civil unrest or riot directly affects your flights or accommodation. If the unrest or rioting hasn’t directly affected your travel arrangements, cancelling your trip may be considered by your insurer as a ‘change of mind’ scenario, which is generally not claimable.
Accident en route
If you missed your flight/booked transport because of a motor vehicle accident, railway accident or marine accident en route and you can prove that there was no other way for you to get to your transport carrier. You will generally need a letter from an authority, such as the police or transport provider to prove the accident happened.
Theft of passports, travel documents or credit cards
If your passport or documents are stolen, travel insurance will reimburse you for your expenses incurred when replacing your items, as well as cancellation fees or lost deposits if you are unable to continue your journey due to theft of your passport.
Getting to special events
If your flight or other transport has been cancelled or delayed, and you need to reach a special event, such as a sporting event, wedding, or funeral, many insurers cover your alternative transport expenses to get there on time - even if the reason your flight or transport was cancelled was the airline’s fault. Different insurers consider different things a ‘special event’, so check that your policy does what you need it to.
Delays or disruption of journey
If you experience a flight delay (typically of more than six hours), and your airline doesn’t look after you, your travel cover can provide accommodation and food benefits of around $200-$250 per adult for each day the disruption occurs. If you miss a connecting flight due to the first airline’s fault, some insurers also cover the cost of getting you on a new flight - provided that you’ve left at least 3-5 hours for connections. Check your insurer’s policy documents to see if they offer this, or give them a call.
Cancellation of annual leave - if you’re in the emergency services
Many insurers cover full-time defence force, police and other emergency service personnel coverage if their annual leave is revoked. Again, each insurer is different on this, so be sure to check your policy works for your circumstances.
Cancellations that are not covered
Of course, not every situation can be covered and this is when the confusion starts.
Cancellations where the airline is responsible
If your flight was cancelled due to a mechanical fault, overbooking, maintenance, repairs, rescheduling, service faults, a pilot sleeping in, or the airline closing down then you are generally covered. It is the airline’s responsibility to compensate, reimburse, or find an alternative flight for the traveller – not the insurer.
The exception is where insurers offer alternative transport expenses or disruption of journey benefits, which help you get to a special event, like a wedding, or cover meals and accommodation, regardless of whether the airline was at fault.
Missing flights where you’re responsible
Slept in? Turned up to check-in too late? Delays caused by your negligence are not covered under travel insurance. Insurers will ask that you left ‘sufficient’ time to get to the airport. This includes missed connecting flights.
Cancellations due to undeclared pre-existing conditions
If you cancel because of a pre-existing condition that you didn’t declare, or a family emergency where the cause is a pre-existing condition.
Change of mind
If you decide you don’t want to go on holiday anymore, travel cover won’t cover you.
Cancellation of annual leave
Unless you’re in the defence force, police, or other emergency services, you’re generally not covered if your employer revokes your annual leave.
Visa refusals or not having the appropriate documents
If your destination visa is denied and you’ve already paid for flights and accommodation, travel insurance cannot help, as it’s up to the traveller to verify that their visa requirements have been met. Likewise, if you are turned away from the foreign country because you weren’t aware of a visa requirement, most insurers consider this to be a general exclusion.
In some cases, the airline might refund your tickets as they’re not allowed to fly passengers to a country without a visa.
Exams
If you or another member of your group is suddenly required to sit an exam and cannot travel then most travel insurance will not cover your travel costs.
Underbooked tour
If your tour is cancelled due to underbooking, this is generally not a covered situation.
A travel insurance policy is a legal document and yet so many travellers chose not to read the Product Disclosure Statement which explains in detail all the policy benefits. Each insurer has a list of inclusions and exclusions, to avoid any doubt, check this before you travel.
Insolvency of a travel provider
If your travel agent, tour provider or airline becomes insolvent, very few insurers cover this. Check out our guide to learn more about who covers different travel company insolvency situations.
Claiming for travel cancellations
Claiming for trip cancellations doesn’t have to be difficult. Check your insurer’s product disclosure statement, and read through the sections on cancellations, alternative transport expenses, travel delays, etc, as well as the general exclusions so you’re aware of what you can and can’t claim for. Find your insurer’s claims web page, fill out the form and upload your documents. You’ll generally need copies of your itineraries, refund advice, proof of payments and proof of the reason for your trip cancellation - this will vary depending on the reason you need to cancel your holiday.
Visit our guide more on claiming for travel cancellations and delays.
