Explained: Does travel insurance cover bomb threats on flights
What's the story
With India witnessing a sudden spate of bomb threats disrupting flights, many have been left confused about how far travel insurance covers in such cases. Shilpa Arora, co-founder and COO of Insurance Samadhan, explained that standard travel insurance policies usually do not cover disruptions caused by false bomb threats, CNBC TV 18 reported. However, she indicated that the industry may reconsider if these incidents continue to rise.
Policy nuances
Compensation hinges on policy terms, official advisories
Rakesh Goyal, director of Probus Insurance, said compensation largely depends on whether the policy defines the situation as a qualifying event. This could be verified airport closures or government-issued advisories after a credible bomb threat. "If a traveler cancels their trip following a credible bomb threat and an official advisory, they may be reimbursed for non-refundable expenses like flights and hotel bookings," Goyal said.
Claim assessment
Insurers rely on official reports to assess threats
Goyal further noted that other expenses might be covered if alternate travel arrangements are required due to a bomb threat. However, Arora pointed out that claims are usually assessed on a case-to-case basis and compensation may be possible if the airline is at fault. This is rare unless authorities deem the threat as legitimate. "Insurance companies base their decision on assessments made by airlines and airport operators," Goyal added.
Policy review
Travelers advised to review insurance policies
In light of the recent spate of bomb threats, Arora stressed on travelers reviewing their insurance policies and discussing possible scenarios with insurers. She also advised travelers to stay abreast of official advisories before changing travel plans. "Reimbursement is more likely if cancelations follow an advisory or airport closure," Goyal agreed, stressing on the need for travelers to be aware of their insurance coverage terms during these uncertain times.