Flight Cancelled Due To War? Why Your Travel Insurance May Not Pay

Flight disruptions triggered by the ongoing Iran-US conflict are leaving thousands of passengers stranded, and many of them are learning a costly lesson about the limits of their travel insurance.

With large parts of Middle East airspace shut, airlines using the crucial air corridor connecting India with Europe and North America are cancelling or rerouting flights. The result has been widespread delays, missed connections, and rising out-of-pocket expenses for travellers.

Yet, despite holding insurance policies, many are finding they have little financial protection.

Why Your Insurance May Not Help

At the heart of the issue is a basic but often misunderstood fact: travel insurance is designed for personal emergencies, not global crises. FOLLOW LIVE UPDATES

Hari Radhakrishnan, Expert at the Insurance Brokers Association of India (IBAI), explains: "Standard travel insurance policies usually do not cover war or war-like situations. Trip cancellation, curtailment, interruption, or extension benefits are not offered on an 'all risks' basis; they apply only to specific situations mentioned in the policy. These typically include events such as hospitalisation or death of the traveller or an immediate family member, natural disasters, political unrest at the destination (like riots, strikes, or civil commotion), or loss of passport or visa."

He adds, "War or war-like events that lead to trip cancellation or disruption are not listed as covered events and are often clearly excluded. In fact, since such coverage is not provided in the first place, policies may not even need to define or exclude 'war' separately. The situation is similar for health insurance as well. Medical expenses arising due to war or war-like situations are generally not covered under standard policies."

In simpler terms, even if your flight is cancelled due to conflict, your insurer is unlikely to compensate you.

Travellers Stuck In 'Grey Zone'

The situation becomes more complicated because airlines also operate under constraints during such events. Here's what airlines are obligated (and not mandated) do:-

Under aviation rules, war is treated as a "force majeure" event -- beyond the airline's control. This means you may get a refund or another flight, but you are unlikely to receive compensation for losses.

What Exactly Is Not Covered

The "war exclusion" clause in insurance policies extends far beyond just ticket costs. Here are the key exclusions:-

• Trip cancellations or curtailments
• Missed or delayed connections
• Hotel bookings and rebooking expenses
• Baggage delays linked to airport shutdowns
• Medical claims tied to conflict-related incidents

Even indirect disruptions, such as flights rerouted due to closed airspace, may not qualify for claims, because insurers look at the root cause of the disruption.

How Insurers Decide Claims

Insurance companies assess what is known as the proximate cause or the original trigger of the disruption. Here are some example scenarios:-

If the chain of events begins with war or civil unrest, claims are usually denied,  even if later complications add to the loss.

'No Reimbursement Regardless Of Your Policy'

Siddharth Maurya, Founder and Managing Director of Vibhavangal Anukulkara Pvt Ltd, highlights the gap in consumer awareness: "Current geopolitical events especially those concerning Iran and the United States underscore another insufficient aspect in travellers' comprehension of insurance policies."

He added, "Typical travel insurance policies cover many types of sudden and unforeseen activities like medical emergencies, delays in the trip and loss of luggage but they cover nothing in relation to war, invasion, or war-like situations. This means that regardless of conflict escalation that leads to the cancellation of flights or the disruption of travel routes, travelers will receive no reimbursement regardless of their travel insurance policies."

Even more complicated is the undefined responsibility of the airlines. "Travellers face refunds, rebooking, and travel policies that change and are often limited in such situations. Travelers will have to revise insurance policies and try to procure insurance in specialised areas that are less typical than standard travel insurance. In today's global environment, standard travel insurance is a poor option. Travelers are likely to face restrictions, and poor risk analysis will lead to high costs," Maurya further said.

Where Insurance Works

Despite these gaps, travel insurance is not useless. it just has limits.

What remains covered

• Medical emergencies abroad
• Hospitalisation and treatment costs
• Personal accidents unrelated to conflict
• Limited baggage protection (non-conflict scenarios)

Crisis Across Global Aviation

Understanding the obligations of airlines and the insurance companies become particularly important as the disruption is not isolated. Data from 'Travel And Tour World' shows more than 2,300 flight cancellations and delays across major Asian hubs on Monday itself. These include:-

• Delhi (IGI Airport): 268 delays, 4 cancellations
• Mumbai: 203 delays, 11 cancellations
• Tokyo Haneda: 414 delays
• Bangkok Suvarnabhumi: 248 delays
• Shanghai Pudong: 215 delays

Airlines such as Air India, IndiGo, Japan Airlines, and All Nippon Airways are among the most affected. According to a report by The Financial Times, the Middle East crisis has wiped out more than $50 billion off the value of the world's biggest carriers.

What Travellers Should Do

Given the current situation, travellers need to be more proactive:

• Read policy wordings carefully, especially exclusions
• Rely on airline policies first for refunds or rescheduling
• Keep documentation of cancellations and delays
• Avoid assuming blanket coverage for geopolitical disruptions
• Consider specialised or add-on covers, if available