Does travel insurance cover you for the Bali volcanic ash cloud?
Aussies are being urged to contact their airline or travel insurer provider as travel disruptions continue as a result of a dangerous ash cloud caused by eruptions from Indonesia's Mount Lewotobi Laki-Laki.
Jetstar, for example, states that customers can 'rebook their travel for no charge or cancel their booking and obtaining a voucher.'
However, those currently stranded in Bali or out of pocket as a result of the flight cancellations can make a claim through their travel insurer, provided they had already purchased cover.
While flight cancellations and disruptions because of ash clouds can be extremely frustrating, it's important to know that these embargoes are in place for your safety. That being said, it's helpful to know how travel insurance can be of use under these circumstances.
Does travel insurance cover you for a volcanic ash event?
Travellers who had purchased comprehensive cover prior to the event being known would be eligible to claim for losses associated with the ash cloud event.
Unpredictable travel disruptions like these are exactly why you need insurance.
Holidaymakers whose trip plans have been affected by the ash cloud will have provision to cancel and claim for out-of-pocket expenses provided they purchased their policy prior to their insurer's cut-off date. This will most likely be just before or on November 13, when news of the ash cloud became widespread.
However, those who had not yet purchased cover would be unable to claim over the ash cloud disruption.
As this ash cloud is now 'known' to insurers it would be too late to purchase cover for this specific event. It's useful to remember that if your holiday is derailed as a consequence of a known or widely publicised event, your travel insurer will usually not cover it.
Am I covered for delays or cancellations?
Before heading on holidays travellers should always check the specifics of their travel insurance cover.
Your choice of insurer and benefit level can make all the difference when it comes to your cover. A basic travel insurance policy for instance, will not provide cover for travel delays or cancellation.
They are often medical-only policies and are priced accordingly.
However, many standard or comprehensive policies will provide cancellation cover and will reimburse you for any additional travel expenses incurred as a result of a natural disaster.
What if I'm stranded in Bali?
Aussie travellers stranded in Bali beyond the expiration date of their travel insurance policy will also be eligible to claim for any additional accommodation and travel expenses, however, they are advised to stick to a reasonable budget. First class upgrades, penthouse accommodations or fine dining meal costs may not be covered.
If you're unsure of how much cover you have, check with your insurer.
Most importantly, travellers should always prioritise their health and safety, and not overlook the importance of travel insurance. As travel can be unpredictable, it's essential to understand the details of your travel insurance coverage. In the event of a medical emergency, you can't underestimate the importance of travel insurance.
Lastly, remember that while flight delays can be frustrating, groundings due to a volcanic eruption are always in the interest of passenger safety.
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