India-Pak tensions: Will travel insurance cover flight cancellations due to airport closures?

In most standard travel insurance policies, events like terrorist attacks or acts of war are typically part of the general exclusions.

Even as peace is returning to border states in India after India’s military strikes on Pakistan following the Pahalgam terror attacks, 32 airports across several northern and western states remain closed for civilian flight operations until May 15.

They include Srinagar, Jammu, Amritsar, Chandigarh, Shimla and Dharamsala. Since the suspension of operations came during the peak summer vacation season, it affected the plans of several tourists.

War, war-like situations, exclusions under travel insurance

According to insurance companies, while international travel insurance is popular, domestic travel policies have not gained traction in India. However, even travellers who might have purchased these policies, particularly through travel portals, might not necessarily be able to claim compensation for cancelled flights or trips.

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“If an airport is closed due to government directives related to acts of terrorism, war, invasion, or similar incidents, airlines usually inform travellers well in advance and issue refunds. Therefore, these scenarios are not covered by travel insurance," said Vivek Chaturvedi, CMO and Head of Direct Sales, Digit Insurance.

Travel insurance typically comes into play when airports close unexpectedly for reasons such as extreme weather (floods or cyclones), last-minute runway repairs or accidents.

“If your flight is delayed or cancelled due to these unforeseen events and you weren't informed in advance by the airline, your travel insurance typically covers such scenarios, and a claim is issued up to the sum insured mentioned in your policy,” he said.

In most standard travel insurance policies, events like terrorist attacks or acts of war are typically part of general exclusions.

“Cancellations due to government-imposed restrictions or curfews arising from law-and-order situations are typically excluded, unless covered under specific add-ons,” said Aashish Sethi, Head, Agency, Health Distribution and Travel Channel, Bajaj Allianz General Insurance.

The classification of a 'war-like situation' depends on official declarations . “While isolated terror attacks are not always treated as war-like situations by insurers, they may still fall under exclusions, especially if the risk is ongoing or escalates into civil unrest or military action,” he said.

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Besides flight cancellation, travel insurance covers flight delays, trip cancellation, hotel booking expenses, accidents, emergency hospitalisation, baggage loss and so on. The reasons for trip cancellations could include medical emergencies, death of an immediate family member and natural disasters. “We always urge policyholders to refer to the specific terms and conditions of their policy to understand what is covered,” added Sethi.

Coverage under ‘cancel for any reason’

An emerging coverage benefit, ‘cancel for any reason’ option is offered typically with group travel policies sold through tour operators or hotels. “This optional cover provides the flexibility to cancel trips for any non-listed reason—including personal apprehensions, change of mind, or even concerns around safety due to developing local events, and still receive partial reimbursement of non-refundable costs, subject to policy terms,” said Sethi.

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