Does your travel insurance policy cover War?

Travel insurance is designed to protect travellers from unexpected risks during their journey, from medical emergencies and accidents to baggage loss and trip delays.

For international travellers it acts as a financial safety net by covering emergency hospitalisation abroad, trip interruptions due to personal emergencies, loss of passport or baggage and travel delays and missed connections

However, during geopolitical crises, such as the ongoing conflict in the Arabian peninsula involving Iran, the US and its allies, travel insurance begins to show its limitations.

What travel insurance covers

Standard travel insurance policies are built around personal, unforeseen events, not global disruptions.

Covered:

• Medical emergencies and hospitalisation
• Personal accidents
• Baggage loss (non-conflict situations)
• Some trip delays (subject to conditions)

Not covered:

• War and war-like situations
• Military conflict or invasion
• Large-scale geopolitical disruptions

Buying travel insurance during conflict

One of the immediate effects of the ongoing conflict has been restricted access to new travel insurance policies. Recent industry developments indicate that:

• Several insurers have stopped issuing new policies for travellers heading to regions such as the UAE, Qatar, Oman, Saudi Arabia, and Turkey
• Only a limited number of insurers are still offering coverage
• Underwriting has become more cautious due to elevated risk exposure which results in travel insurance becoming more insurance

This is because insurers assess risk at the time of issuing a policy. When a region becomes high-risk due to war or conflict, insurers may:

• Decline proposals entirely
• Impose stricter terms and/or increase premiums significantly

In simple terms, insurance becomes harder to buy precisely when risk is highest.

Why insurers refuse coverage in conflict zones

Insurance works on the principle of predictable risk pooling. War disrupts this balance.

In conflict situations risks become uncertain and catastrophic. Losses can be widespread and simultaneous, and historical data becomes unreliable

As a result, insurers may choose to withdraw from underwriting such risks altogether, rather than expose themselves to unpredictable large-scale losses.

Claims being denied during the conflict

For travellers who already have travel policies, they may face rejected claims from their insurers.

Many travellers affected by flight cancellations, airspace closures, missed connections, and extended stays abroad are discovering that their insurance policies do not compensate these losses.

This might seem unfair, but let’s look at why insurers reject these claims.

Proximate Cause

The key concept that determines claim outcomes in such situations is “proximate cause.” In insurance, proximate cause refers to the primary or dominant cause of a loss, not just the immediate event.

If the proximate cause of the loss is a war or war-like situation, the claim will be denied, even if the actual loss appears unrelated. This principle ensures that insurers assess claims based on the root cause.

What exactly is not covered

Due to standard war exclusions, the following are generally not covered:

• Trip cancellations caused by conflict
• Flight rerouting due to closed airspace
• Missed connections linked to war-related disruptions
• Hotel rebooking costs due to geopolitical instability
• Baggage delays caused by airport shutdowns
• Medical claims arising directly from conflict-related incidents

Even indirect disruptions may be excluded if they can be traced back to war as the proximate cause.

What claims will be paid?

Despite these exclusions, travel insurance still provides value in many situations. Policies still cover:

• Medical emergencies unrelated to conflict
• Accidental injuries
• Hospitalisation abroad
• Non-conflict-related baggage loss

However, the scope of coverage becomes narrower during times of conflict.

The role of airlines and government advisories

In conflict situations, responsibility often shifts away from insurers. Travellers may need to rely on airlines forRefunds or rescheduling options and for alternate routing.

Travellers may even need to rely on government advisories for evacuation support and travel warnings affecting insurance validity.

If a traveller proceeds despite an official advisory against travel, insurance coverage may be reduced or voided for related claims.

To navigate times of geopolitical conflict and war, travellers should:

• Carefully read policy exclusions, especially related to war
• Understand the limits of trip cancellation coverage
• Avoid assumptions of “all-risk” protection
• Check airline policies alongside insurance coverage
• Explore specialised or add-on covers, if available

Travel insurance remains a valuable protection for travellers, but only when its coverage is clearly understood.

To know more about your travel insurance policy, feel free to contact us by clicking here.

This blog post is brought to you by the minds at insurancepe!

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