Frequently Asked Questions: Middle East Conflict & Insurance

Insurers are supporting policyholders impacted by conflict in the Middle East, and strongly encourage:

• Anyone planning or undertaking international travel to review the Australian Government’s Smartraveller website (smartraveller.gov.au) for the latest travel advice. Travelling against a “Do Not Travel” advisory will most likely impact your coverage.
• Australians currently in impacted countries are recommended to register their details with the Australian Government’s crisis page.
• Contact your insurer should you need assistance. Insurers have dedicated 24/7 access, are assisting with the coordination of medical care, and are prioritising support for those in impacted countries.
• Do not cancel your flights but rather wait to hear from your airline or travel agent. You may be able to reschedule for a later date.
• Travellers are encouraged to review their product disclosure statement (PDS) to understand the scope of their coverage and speak to their insurer about their specific situation if they have any queries or need assistance.

The 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.

While standard travel insurance policies exclude losses directly caused by war and conflict, insurers are offering a range of support to impacted customers. This includes dedicated 24/7 access, assisting with the coordination of medical care, and prioritising support for those in impacted countries.

The ICA encourages impacted policyholders to contact their travel insurer if they need support and lodge a claim if they have suffered a loss, even if they are not sure of their 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.

Coverage varies widely between insurers and policies, so always check your PDS and contact your insurer even if you think you might not be covered. A number of insurers have also issued “known event statements” to clarify scope of coverage specific to their policies.

Some policies may still provide coverage for:

• emergency medical expenses or cover for lost, stolen or damaged luggage from incidents unrelated to conflict;
• evacuation coordination; and
• death or disability benefits where the direct cause is not linked to a war-related event.

ICA members providing travel insurance have indicated that the coverage date of policies will be extended to support customers impacted by airport and airspace closures.

Coverage varies widely between insurers and policies, and some policies may provide cover for those who are yet to travel and have been impacted.

ICA members providing travel insurance have indicated that the coverage date of policies will be extended to support customers impacted by airport and airspace closures.

Contact your insurer should you need assistance.

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.

If your travel provider has cancelled your flight or accommodation, speak to them in the first instance as you may be entitled to a refund from them directly. Contact your insurer should you need assistance.

Being in a DNT country due to an unplanned stop or diversion won’t automatically void cover. Whether a claim is paid comes down to the cause of loss. If it’s directly linked to the conflict or situation that triggered the DNT advisory, it’s likely to be excluded. Losses not related to war and conflict remain covered by travel insurance policies, including medical care, with every claim assessed individually based on its merit.

While this is an extraordinary 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.