Frequently Asked Questions: Middle East Conflict & Insurance

If you’re currently overseas or planning to travel, take these steps: 

• Check the Smartraveller website (smartraveller.gov.au) for the latest travel advice. Travelling against a “Do Not Travel” advisory will most likely affect your coverage. 

• If you’re in an impacted country, register your details on the Australian Government’s crisis page. 

• Don’t cancel your flights. Wait to hear from your airline or travel agent, as you may be able to reschedule. 

• Contact your insurer for any additional assistance as they have 24/7 support available and are prioritising assistance for those in affected areas 

To amplify the industry’s support, the ICA declared the Middle-East conflict a Significant Event. This declaration assists the Insurance Council, insurers, and policymakers to assess the insurance impact from this event. Under the Significant Event declaration:  

• An industry-wide taskforce has been established.  

• The ICA has commenced claims data collection, analysis, and reporting in consultation with members.  

• ICA representatives are working with the Federal Government and agencies to ensure a coordinated and joined up approach for those Australians impacted.  

Standard travel insurance policies exclude losses directly caused by war and conflict. This is standard practice worldwide as the scale and unpredictability of armed conflict creates risks that are difficult for insurers to price. However, insurers are actively supporting impacted customers, so contact your insurer and lodge a claim even if you’re unsure of your coverage.

War and conflict exclusions are present in all general insurance policies and is standard practice worldwide. These exclusions exist because the scale and unpredictability of armed conflict create risks that are difficult for insurers to price. Without this exclusion, premiums for all travellers would be unsustainable given the risks the coverage would need to account for. 

Yes, coverage varies between insurers and policies, so it’s always worth checking your Product Disclosure Statement and contacting your insurer. Some policies may still cover: 

• Emergency medical expenses or lost luggage from incidents unrelated to the conflict. 

• Evacuation coordination. 

• Death or disability benefits where the cause is not linked to a war-related event. 

A number of insurers have also extended policy coverage dates to support customers affected by airport and airspace closures. This means that if you are delayed past the date, you were originally insured for, your insurance coverage remains in place.  

Coverage of medical expenses depends on the policy and the specific circumstances. If the condition is directly caused by an act of war or armed conflict, it is likely to fall under the war exclusion and may not be covered.  

However, if you required emergency treatment for an unrelated medical issue (for example, an accident or sudden illness) that coincidentally occurred in a conflict zone, you may have cover.  

Coverage varies widely between insurers and policies, so always check your PDS and call your insurer even if you think you might not be covered. 

• Contact your airline, hotel, or tour operator first as you may be entitled to a direct refund. 

• Contact your insurer as some policies may provide cover for cancellation or delays. 

No. Being in a “Do Not Travel” country due to a diverted flight or unplanned stop won’t automatically invalidate your cover. Whether a claim is paid depends on the cause of the loss. If it’s directly linked to the conflict, it’s likely excluded, but losses unrelated to war and conflict remain covered. Every claim is assessed individually.

Most travel insurance policies exclude claims caused by war, armed conflict, or military action, and do not cover cancellations simply because you have changed your mind about travelling. 

You should contact your airline or travel agent in the first instance. Depending on the situation, you may be entitled to a free rebooking, a refund, or a credit – but check before cancelling anything yourself, as doing so could affect what you’re entitled to. 

If you decide you no longer need your travel insurance policy, contact your travel agent or insurer to ask about cancelling it as you may be entitled to a partial or full refund of your premium. 

While this is an uncommon event, acts of war have always been excluded from travel insurance policies, meaning this event alone is unlikely to flow through to direct premium increases. Any follow-on impacts as a result of this conflict remains to be seen. This event is still unfolding and impact is unknown.