Going on a big trip? What travel insurance may not cover when disruption hits
If you are planning a major trip, it is easy to focus on the exciting parts: flights, accommodation, and an itinerary that makes the most of your time away. Travel insurance often becomes another item to tick off the list—something you buy for peace of mind and hope you never need.
But when large-scale disruption hits, the difference between what travellers assume is covered and what a policy actually covers can be costly. Recent flight cancellations and lengthy delays linked to conflict in the Middle East have put the spotlight on how travel insurance responds when events unfold beyond a traveller’s control.
Airspaces were reopened and operations in Dubai and Qatar resumed, but the period of uncertainty left many passengers dealing with sudden route changes, missed connections and unexpected expenses. In moments like these, the fine print matters.
Why understanding exclusions matters as much as the benefits
Many travellers shop for insurance by scanning the top-line benefits—medical cover limits, cancellation cover, luggage protection and excess amounts. Those features are important, but the real test of a policy often sits in the exclusions.
Insurance expert Jodi Bird from consumer advocacy group CHOICE says that while different insurers may offer different levels of cover, there are also areas where policies are remarkably similar—particularly when it comes to war.
According to Mr Bird, there is a broad exclusion across policies for claims resulting from war. In his words, it is “pretty much across all policies” a “blanket ban,” and CHOICE is not aware of policies that cover claims resulting from war.
That point can surprise travellers who assume that paying a higher premium buys protection against any disruption. Mr Bird says it does not. Even expensive policies do not necessarily offer protection when conflict breaks out overseas.
A family’s experience: when a cancelled flight is refunded but extra costs remain
One traveller’s experience shows how quickly costs can fall back onto the individual. Wendy bought travel insurance for her adult son, Christopher, weeks before conflict in the Middle East escalated. Christopher had won a European holiday and was transiting through Doha when the disruption hit.
He was unable to board his connecting flight to Doha. While he received a full refund for the cancelled ticket, Wendy says they were told he would have to pay the difference for an alternative ticket with another airline.
Wendy described the family’s reaction as shock. She said she understood that war and unrest are major issues, but still found it confronting that the situation could be treated as something outside their control yet still excluded under the policy.
For Wendy, part of the frustration was that the risk did not feel foreseeable at the time they booked. She said it would not have occurred to them that a transit flight through Qatar—used by thousands of passengers daily—could be affected by war-related disruption.
Does it matter when you bought the policy?
A common assumption is that timing can change the outcome: if you buy travel insurance before a conflict begins, you might expect to be protected if the situation later deteriorates. However, the Insurance Council of Australia’s deputy CEO, Kylie McFarlane, says it does not matter when the policy is taken out.
Even if there is no conflict or war at the time of purchase, the fine print may still exclude claims arising from those events once they occur.
This is an important distinction for travellers who believe they have “done everything right” by buying insurance early. In practice, the wording of general exclusions can mean that certain categories of events are not covered regardless of when the policy was purchased.
War and conflict vs natural disasters: not always treated the same
Not all major disruptions are handled in the same way. Ms McFarlane says natural disasters such as floods, cyclones or bushfires are treated differently to war or conflict. Depending on the level of cover, travellers may have protection for extreme weather events.
In her words, “Extreme weather events may be an inclusion,” but it comes down to the policy and the provider. For travellers concerned about a particular risk, she recommends speaking to the insurer.
This highlights a core reality of travel insurance: the label “travel insurance” does not guarantee uniform cover across providers or even across different products from the same provider. The specific policy wording determines what is included and excluded.
What to do if your claim is rejected
When disruption happens, travellers often feel they have little bargaining power—especially if they are overseas and under time pressure. But Mr Bird advises that a rejection should not automatically be treated as the end of the road.
He says travellers should not accept a knock-back as the “last port of call” unless they agree with the insurer’s reasoning. The first step is to raise a complaint directly with the insurer and ask them to revisit the claim.
If the insurer does not provide a satisfactory answer, Mr Bird says the complaint can be escalated to the Australian Financial Complaints Authority.
In Wendy’s case, she contacted the insurer but says the company directed her to the clause in the policy stating that war or unrest made claims null and void. Her experience underlines why it is useful to understand exclusions before travel, rather than discovering them under pressure.
Where to look in your policy before you fly
Travel insurance documents can be lengthy and full of technical language. Still, there are specific sections that can provide a clearer picture of what you are buying.
Mr Bird recommends going beyond the headline benefits on an insurer’s website and reading the policy’s exclusions. He points travellers to the product disclosure statement (PDS), which typically includes a section called “general exclusions.”
That section, he says, can help travellers understand what may not be covered, including “big events like war, pandemic, terrorism, civil unrest.” Reading it may not eliminate every surprise, but it can reduce the risk of assuming cover exists when it does not.
Look for the “general exclusions” section in the product disclosure statement.
Check how the policy defines and applies terms such as war, unrest, terrorism, civil unrest and pandemic.
Compare what is excluded with the types of disruption most likely to affect your route or destination.
If you are unsure, ask the insurer directly what happens in specific scenarios.
Travel insurance can still be worth it—especially for medical costs
Despite the limitations around conflict-related claims, Mr Bird argues travel insurance remains valuable. He says it is “definitely worth it,” particularly for medical costs.
Medical and repatriation expenses can be financially serious if something goes wrong overseas, and these are areas where travel insurance can play a crucial role. In other words, the presence of exclusions does not mean insurance is pointless—it means travellers should buy it with a realistic understanding of what it can and cannot do.
Planning for the possibility you may still pay out of pocket
Wendy’s family ultimately faced costs they could not recover. Although Christopher’s cancelled flight was refunded, they were not able to have the difference covered for a more expensive replacement flight with another airline. They also could not recover extra costs associated with travelling from a different city to his intended destination.
Her message to other travellers is blunt: even if you pay for your trip, prepare carefully and buy travel insurance, you may still need to cover costs yourself if something goes wrong.
That is not an argument against travel insurance; it is a reminder to treat it as one layer of protection rather than a guarantee. Understanding exclusions, budgeting for contingencies and knowing how to dispute a claim can help travellers respond more calmly and effectively when plans unravel.
Health checks and basic precautions before you travel
Travel preparation is not only about flights and finances. Doctors are advising travellers to check vaccinations, pack health essentials and take basic precautions such as mask-wearing in crowded areas.
These steps do not replace insurance, but they can reduce the likelihood of needing medical help overseas—one of the most expensive and stressful situations travellers may face.
A practical checklist before your next departure
Read the product disclosure statement, not just the marketing summary.
Focus on general exclusions and how they apply to war and unrest.
Confirm whether extreme weather events are included under your level of cover.
Keep records of cancellations, delays and communications in case you need to lodge a claim.
If a claim is rejected and you disagree, complain to the insurer and consider escalating to the Australian Financial Complaints Authority.
Before travel, check vaccinations, pack health essentials and take basic precautions in crowded areas.
Large-scale disruptions can happen quickly, and they can affect travellers far from the centre of the event—sometimes through a single transit airport or a rerouted flight. The most useful approach is to treat travel insurance as a product that must be read and understood, not just purchased. That means being clear-eyed about exclusions, realistic about what might not be covered, and prepared to challenge a decision if you believe your claim should be reconsidered.