Can your travel insurance cushion cancellations and delays amid US–Israel attack on Iran?

Indian insurers such as ICICI Lombard and TATA AIG also sell Dubai travel insurance through their domestic websites

• Rising Iran–US–Israel tensions disrupt travel to Dubai
• Travel agencies offer real-time updates and rescheduling support
• Demand for travel insurance rises amid Middle East instability

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Hundreds of flights have been cancelled, key Gulf hubs have shut down, and thousands of passengers, including many Indians, are stranded as airspace across West Asia closes following the joint US–Israel attack on Iran and the subsequent military escalation.

Besides, several international carriers rerouted flights due to airspace closures in affected regions.

With nearly empty skies over some of the world’s busiest transit routes and airlines suspending services at short notice, travellers are facing sudden cancellations, long delays and expensive last-minute rebookings.

In this chaos, can a comprehensive travel insurance policy make the difference between absorbing the financial shock and getting compensated for disrupted plans?

Arun Ramamurthy, Co-founder, Staywell.Health said, "We have seen a significant increase in the number of travellers seeking assistance with travel-related issues while travelling to/from/ transiting through the Middle East."

Online travel agencies, ticketing platforms and insurance aggregators said they are closely monitoring the situation and have strengthened real-time communication with customers. They added that assistance will be extended to travellers wherever required, including updates on air routes, rescheduling options and policy support.

"Many of these issues are related to disruption, such as cancellations, delays, missed connections, reimbursement for additional accommodation or transportation costs, etc. Most of these issues are operational-related, not medical; therefore, we have had increased customer support requests based on travellers seeking answers to their questions, assistance re-booking, and clarification of what the travel insurance policy provides coverage for as the travel conditions continue to change," added Ramamurthy.

As a result of this increased demand for travel insurance support for delays of the trip, interruptions of the trip and missed connections, many travellers are seeking travel insurance products to help cover unexpected expenses for their accommodations, re-booking and other disruption-related costs.

"The traveller should note that most insurance policies that cover travellers tend to exclude claims that result from war or hostilities, as declared by the government. The claims are therefore admissible when they arise from operational issues such as flight cancellations or airport closures. This is an important point, especially during the current period," said Naval Goel, Founder and CEO of PolicyX.com

Echoing similar views,  Abhishek Bondia, Principal Officer and Managing Director at securenow.in, said, "Standard travel insurance has an exclusion of war.  So, any cancellation due to a declared war or a sustained military campaign would not be covered.  However, there are policies that cover trip rescheduling costs due to a war-like situation. You should specifically check for add-ons that cover war-linked cancellation."

What does Trip cancellation cover?

Trip cancellation cover, for instance, safeguards non-refundable expenses if unforeseen developments force a traveller to cancel or postpone their journey.

"Trip Cancellation and Interruption coverage is increasingly relevant in a world where flights can be disrupted by political unrest, natural disasters, or health emergencies. This add-on ensures you don’t lose non-refundable bookings or get stranded without help," said Chetan Vasudeva, Senior Vice President – Business Development at Elephant.In Alliance Insurance Brokers.

"For travellers who have already been stranded due to cancellations, travel insurance can assist in the reimbursement of hotel bills, food expenses during the course of the delay, as well as expenses incurred due to the missed flights, depending on the conditions of the policy. Most travel insurance companies offer 24-hour assistance services to aid the customer in such situations," said Goel.

Personal liability protection offers financial cover against third-party claims or damages during the trip, while medical coverage ensures that emergency treatment or hospitalisation in the UAE does not become a financial strain.

You also receive emergency assistance and 24x7 support for emergencies, including medical evacuation, ensuring quick aid.

Besides, perks like flight delay compensation and coverage for adventure activities, enhancing your travel security is also covered under the travel insurance plan

Vasudeva said, "The finest overseas travel insurance policy typically insures such medical expenses, including visits to the doctor, hospitalisation, ambulance charges, emergency evacuation, and even repatriation in extremely critical conditions."

Moreover, travel delay benefits under a comprehensive travel insurance policy cover unexpected meals, rebooking, or overnight lodging in case of prolonged flight delays. On top of that, such policies cover reimbursement for missing or delayed luggage, stolen personal items, and passport replacement, which can be very critical in foreign settings, added Vasudeva.

For travellers planning to travel, it is very important to purchase travel insurance at the time of booking the tickets. "It is advised to select a policy that offers the benefits of cancellation, delay, and curtailment of the trip. The policy must be carefully read, especially the conditions regarding war and political situations," said Goel.