Summary of this article
War and war-like events usually excluded from travel insurance cover
Trip disruptions due to conflict typically not claimable
Travel to known conflict zones may invalidate claims
Emergency medical care may apply if war starts after arrival
The conflict involving Iran, Israel, and the United States (US) has escalated into a major regional war. For those who are traveling in the affected countries, insurance coverage will vary. A lot of things that are covered under travel insurance will not be covered. Let us take a look.
War Risks Rarely Covered Under Policies
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. “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,” says Hari Radhakrishnan, expert, Insurance Brokers Association of India (IBAI).
An insured individual who knowingly travels to a designated conflict zone will typically not have their claim approved by their travel insurance company. Therefore, it is essential for all insured individuals to thoroughly read and understand their policy wording, as well as travel advisories, prior to leaving home,” says Joshi.
Claims resulting from large-scale political violence or civil commotion will generally fall under exclusions. If we look from the insurer’s perspective, the rationale is quite straightforward. “These types of events constitute 'systematic risks,' whereby thousands of travelers could potentially be affected at the same time, thus creating a scenario whereby insuring these events at standard premiums would prove to be extremely difficult for insurance companies,” says Joshi.
Emergency Care Covered Despite Unrest
However, most Indian travel insurance policies provide coverage for medical emergencies if the insured person is traveling to a destination deemed safe at the time of the trip.
“If a war or armed conflict occurs unexpectedly while the insured is in that country, the insurance company will still provide coverage for medical emergencies associated with the injuries or illnesses that are not directly caused by the conflict,” says Joshi. So, for this coverage to happen, the country needed to be deemed safe when you made the travel plans, and war broke out only after you arrived. Also, as we have seen, the coverage will only be for regular medical issues, but not injury or illness directly covered by war.
Most policies also suggest that insured individuals follow the travel advisories of their respective governments.
