Insurers Say No to War Claims: What Travellers Need to Know

The recent events of international conflict have raised concerns among travellers. People specifically visiting the UAE, due to the Iran and Israel war, prefer to get international travel insurance before their travel. Whether you're travelling for work or just a vacation, and irrespective of the destination you're travelling to, getting insurance is the best safety net you can get. 

With more people buying international travel insurance before their visit, the increased demand is being noted by insurers. Recent studies have shown that this summer, there has been a rise of 40% in travellers purchasing travel insurance due to global disruptions. However, some insurers have started to reject war claims.

Why are war claims being rejected?

A significant reason why war claims are being rejected is that they are not covered under the exclusions. Even if the war is not announced, in case you're stranded due to that, your individual travel insurance will not cover it. A foreign war or civil war is often one of the main exclusions by insurance. 

If you're visiting a region of political unrest or not, the war claims on your international travel insurance will eventually be rejected. It is essential to go through the terms and conditions before you purchase the insurance. Almost all insurers reject war claims, be it undeclared war, rebellion or military action. 

Therefore, no standard international travel insurance will cover your claim for international travel insurance. You must check with your insurer what they have to offer. For example, you can check if there is additional coverage that you can get for visiting these war-prone zones.

No shift in international travel insurance

When you're travelling solo to war-prone areas, you'd think that your international travel insurance would provide coverage. However, it may not. With the evolving health insurance policies, the global travel insurance policy still happens to be conservative. 

The insurer holds the right to reject any war-related claims, such as cancellations and medical emergencies. However, if your insurer is providing war risk extension coverage, you have to pay a higher premium for it. This extension often covers various aspects like hospitalisation, evacuation, repatriation and more. 

If you're visiting a high-risk area, you must not buy the policy under the assumption that the insurance will cover it. Instead, check the clauses and even consult your insurer about the process. Always be very specific with your questions on whether you'll receive coverage in case of cross-border conflict, hospitalisation due to war, and so much more. 

There's no doubt that the travel insurance industry is evolving. It is advisable to get reliable individual travel insurance that offers you enough coverage during your travel. Apart from that, there are chances that new products may be involved with extra coverage against higher premiums to protect you against these catastrophic events.

What about war-coverage add-ons?

Experts suggest that some insurance policies will provide war coverage add-ons. However, these add-ons are very rare and may not often provide the solution you're looking for. Some insurers offer limited coverage even with these add-ons due to political unrest. However, these add-ons will only cover emergency evacuation. 

The scope for these war-related add-ons coverage is slightly unclear. Moreover, if it's a government-sanctioned war, the government will only be able to help with repatriation operations and not your individual travel insurance. 

If repatriation occurs in war-related zones, the national government will coordinate with the embassies, and special rescue operations will be carried out accordingly. The recent events of the Ukraine crisis and Afghanistan situation have highlighted how the insurers didn't step in, but it was the insurance company that took the necessary actions.

Do not travel insurance case of warnings

Due to the war outbreak, the government will receive a wide range of guidelines about visiting these countries and even warnings. If any such warning has been issued about a destination you're visiting, it is advisable to avoid it. 

The leading international travel insurance companies keep out these war-prone zones from their list. Geopolitical risks are not covered under travel insurance. In case of any war breakout, the government has to step in, and the private insurers can't take care of it. Therefore, if you had to file a claim for flight or hotel cancellation due to war, it would be rejected. 

Experts state that international and individual travel insurance is meant to cover unforeseen situations such as flight cancellations or accommodation booking. The insurance can also help to cover trip cancellation with reimbursement if you have to do so due to sickness or a family medical emergency. However, if you're cancelling the trip due to declared war, you will not get any financial coverage for the claim. Even if you had purchased the policy before the war was declared, you wouldn't be able to file a claim to cover your financial losses. 

If you've been hospitalised because of illness or accident abroad but not due to war, you will receive coverage. However, if war has been even the slightest cause for any of this, the claim that you file will immediately be rejected. If your international travel insurance has a CFAR (cancel for any reason) coverage, war is still considered an exclusion. This coverage clause is only valid when you're cancelling the insurance due to any personal reasons and not because of any war.

What to do if I am stuck in a war-prone zone?

If you are stuck in a war-prone zone and have individual travel insurance, it will not be of much use. Considering the volatile situations, the insurance will not cover evacuation or medical emergencies across these regions. All you can do in such a situation is rely on the government of your country to help you with evacuation or any medical help. 

It is a smart decision to travel to countries that are not war-prone. You must also note that you may not receive compensation if your connecting flight is delayed. For example, if you're travelling to New York and the connecting flight to the UAE gets cancelled because of escalating war situations, international travel insurance will not cover it. 

When you're filing a claim for your travel to countries that are not involved in the war, you will have to submit the proper documents stating the reason for cancellation. In case of flight cancellations, if the airline mentions war conflict as a reason, insurance industry experts suggest that the claim will be rejected.

Travel to countries that are not prone to war

With the escalating war situations, you'll be updated with the news every day. It is essential to keep an eye out for international news if you're planning your global travel. One of the best things to do would be to avoid visiting countries that are prone to war. If there's a connecting flight to the war-stricken zone, try to avoid it and go via another route.

Conclusion

While international and individual travel insurance offers a wide range of benefits, it does have a few limitations, too. You need to be aware of the risks, too, when you are visiting a war-prone zone. If you're visiting a high-risk zone, you must go through all the terms and conditions of the policy. Furthermore, you should check the limited offerings in case of geopolitical conflicts. Even if you're not travelling to the war-prone zone, ensure that the route you're taking is completely safe. Therefore, if the situation arises, you can apply for non-war-related conflicts. 

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.