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This information is provided by Allianz Global Assistance on April 22, 2010
Travel Insurance information for Europe flights disrupted by Iceland volcanic activity
The following information concerns the recent volcanic eruption in Iceland and the associated airport closures in Europe due to ash clouds. This advice applies to travel insurance policies issued prior to Friday 16 April 2010.
Please note there is no cover for cancellation, rearrangement or additional expenses for policies issued on or after 16 April 2010 if the cancellation and/or rearrangement arises from the volcanic eruption and associated ash clouds. This however may change as circumstances change.
What do you need to know about your policy?
Your policy includes cover for cancellation and/or rearrangement of your journey, or the unused portions of your journey, as a result of the volcanic eruption and associated ash clouds.
Your policy includes cover when scheduled transport services have been cancelled or your accommodation has been made uninhabitable by the volcanic eruption or associated ash clouds or if you are unable to reach your accommodation/destination.
Your policy also includes cover for additional accommodation and travel expenses if transport services have been cancelled, delayed or rescheduled as a result of the volcanic eruption or ash clouds.
We recommend you contact your travel agent or travel provider regarding the best option in altering or cancelling your trip. Some airlines are providing penalty-free options to amend travel arrangements and full refunds for unused travel.
What happens to your policy if you are stuck overseas, or need to rearrange or cancel your journey as a result of the volcanic ash cloud?
If you are currently travelling and your policy has expired, your policy will automatically extend and provide cover in accordance with the terms and conditions outlined in your Product Disclosure Statement until you return to Australia.
If you have not yet departed, and you rearrange your journey to depart at a later date, you are able to submit a claim for rearrangement costs, and also change your policy dates so that you have cover for your amended journey. There is no additional premium payable for cover of the same duration. It is important to note that this only applies if you do not cancel your entire trip.
If you are currently travelling and you have been injured as a result of the recent volcanic eruption or ash clouds we are able to assist you as your policy includes cover for emergency medical expenses.
If you need emergency medical assistance please contact our 24 hour Allianz Global Assistance Emergency Assistance team on +61 7 3305 7499 reverse charge or 1800 010 075 free call within Australia.
What next steps should you take?
For travellers whose Australian departure is before midnight Thursday 22 April 2010 we recommend that you contact your travel agent or travel provider to make alternative arrangements if your flight to Europe has not been confirmed. Our information suggests that flights on or after 23 April will be running as scheduled, but please confirm with your airline.
You should take all reasonable steps to minimise your expenses and this includes rearranging your journey where possible. And by reasonable we mean rational and consistent—for example if you have been using two star or budget accommodation on your trip to date then we ask that the replacement accommodation you seek is of a similar standard.
Read the Product Disclosure Statement that you received when you purchased your travel insurance policy. This will give you more detail about what your policy provides cover for and what it does not. For example, if you have a cancellation only policy, your policy does not include cover for additional expenses or overseas medical expenses.
Please submit your travel insurance claim to us for consideration.
Any refunds you receive for airfares or accommodation will be deducted from any settlement if your claim is accepted.
You will need to submit all receipts for any additional accommodation and transport expenses. If you are claiming cancellation or additional expenses you will need to submit all documents showing what your original planned pre-paid arrangements were, along with any receipts and documents showing your new arrangements, and advice from the travel provider indicating the non-refundable portion of the journey.
Finally, to help Australians avoid difficulties overseas, the Department of Foreign Affairs and Trade maintains travel advisories for more than 160 destinations overseas via their website SmartTraveller.gov.au. Their travel advice provides accurate, up-to-date information about the risks Australians might face overseas, assisting you to make well-informed decisions about whether, when and where to travel. We recommend that you stay up-to-date with their destination-specific travel advisories for the country of your destination as your travel insurance cover may be affected if you travel to high risk areas or situations.
Your questions answered about travel insurance cover
If you purchased your travel insurance policy on Friday 16 April 2010 or after that date, the following information will help clarify travel insurance cover that is provided by your policy.
Q: If I purchased my travel insurance policy on Friday 16 April 2010 or after that date, am I covered for cancellation and accommodation expenses for flight disruption caused by Iceland volcanic activity, including the current or subsequent ash clouds?
A: No. According to information in the public arena, it is not unexpected that the volcano may continue to erupt for some time. With the information we have today, we would not pay a claim arising from any volcanic activity in Iceland if you purchased your policy on or after 16 April. If you have purchased a travel insurance policy after this date, you will have cover for policy benefits that are not impacted by such a volcanic eruption. Cancellation, accommodation and additional expenses associated in any way with the impact of Iceland volcanic activity and resulting ash clouds will not be covered.
Travel insurance is about protection against unforseen or unexpected events and the disruption caused by Iceland volcanic activity and associated ash clouds can no longer be viewed as either. We encourage you to read your Product Disclosure Statement or Policy Wording that you received when you purchased your policy. You can also download a copy from Travelclaims
This level of cover will be reviewed and reissued if and when relevant. If you purchased our travel insurance policy before Friday 16 April 2010, the following questions and answers relate to the travel insurance cover that is provided by your policy if you are affected by flights disruption caused by the Icelandic volcanic ash cloud.
Q: If I am stranded in London and unable to board my flight home will I be covered for the cost of additional accommodation/hotel expenses while I wait for a flight home? What if this continues for weeks, is there a limit to the support you will give me?
A: We will cover the cost of reasonable accommodation expenses while you wait for your flight home. We want to help so by reasonable we mean the same standard of accommodation that you have been paying for as part of your trip so far. Please be aware that some benefits under our policies do have specific limits of cover. We encourage you to read your Product Disclosure Statement or Policy Wording that you received when you purchased your policy and call us if you are still unsure.
Q: What if I have run out of money and my credit card is ‘maxed’ and I am unable to pay for additional accommodation?
A: Allianz Global Assistance can help by acting as guarantor with your hotel or other accommodation provider for your accommodation while you are unable to board your flight. If you have already incurred costs for additional accommodation, those costs can be refunded once you submit your claim with us.
Q: What if travellers are short of cash or credit?
A: We cannot send you cash but we are able to act as a guarantor for expenses with accommodation and/or travel providers.
Q: What about food and living expenses—will you cover that as well?
A: Some of our policies do provide for travel delay expenses for reasonable living expenses—always in these cases we urge you to keep all your receipts that you need to substantiate your claim with us. If your policy contains this benefit, a policy limit will apply. Please refer to your Product Disclosure Statement for specific details.
Q: If I am hoping to fly to Europe this week for the start of a dream holiday and my flight is cancelled indefinitely or until further notice, will I be covered for the cost of my cancelled flight and all the accommodation and tours I had booked?
A: Yes we will cover your cancellation expenses though we believe that all major airlines will either refund fares or offer rescheduled flights when they are able to. We encourage people to continue to talk to us and their airlines about what options are available to them. We also encourage you to contact your tour and travel providers, or your travel agent to discuss the cancellation or rearrangement of the non-airline portions of your journey, and any refunds that may be available to you.
Q: There are some Australian travellers stranded in Iceland at the moment and apparently they may be able to board a flight to Seattle and fly back to Australia via the United States—will these travel costs be covered?
A: Our policies do provide cover for alternative travel costs and we are able in most circumstances to act as a guarantor for expenses. So if you are a policyholder stuck somewhere with limited or little cash at your disposal, we can help. Every case is different so we strongly advise our policyholders to call us in the first instance.
Q: What else should I be aware of?
A: If you wish to check the detail of your policy coverage, we encourage you to read the Product Disclosure Statement that you received when you purchased your policy. This will give you more detail about what your policy provides cover for and what it does not. When you call us to discuss your travel options and policy cover, it would be useful if you had a copy of your travel itinerary with you—that will save time in assessing the best next steps for you.
You should also take all reasonable steps to minimise your expenses and this includes rearranging your journey where possible.
With your claim, you will need to submit all receipts for any additional accommodation and transport expenses. If you are claiming cancellation or additional expenses you will need to submit all documents showing what your original planned pre-paid arrangements were, along with any receipts and documents showing your new arrangements, and advice from the travel provider indicating the non-refundable portion of the journey and their cancellation terms and conditions.
For more Travel Alert information, go to www.budgetdirect.com.au
