Microsoft-Crowdstrike outage: Travel insurance will pay for flight delays or cancellations, but conditions apply

Will your travel policy pay for flight delays and cancellations due to Microsoft outage?

The aviation sector was amongst the worst affected by the global Microsoft software outage, with multiple airlines, including domestic ones such as IndiGo, Vistara, Akasa and SpiceJet, being affected as check-in systems were adversely affected.

While some resorted to manual check-ins, the damage was much larger. Hundreds of flights were cancelled or delayed in India, across airlines.

Claims payable under travel insurance

If you have a travel insurance policy, you can file a compensation claim. “Major tech disruption of cloud services by a major IT corporation has caused widespread flight delays and cancellations, both domestically and internationally. Any delays or cancellations of scheduled flights by the airlines will get covered under travel insurance,” says Vivek Chaturvedi, Chief Marketing Officer and Head of Direct Sales, Go Digit General Insurance.

You can file claims even if the airline has issued compensation for the inconveniences suffered. “If the cancellation and delays are covered as per policy terms and conditions, then we will pay the claim (irrespective of measures taken by airlines),” says Aashish Sethi, Head, Health SBU and Travel, Bajaj Allianz General Insurance.

Also read: Microsoft outage: Mumbai, Delhi, other airports face tech issues; IndiGo, Akasa, SpiceJet check-ins affected

If your airline has cancelled your domestic or international flight citing the outage-induced disruptions without informing you well in advance – the minimum stipulated duration varies as per the insurer and policy – you can file a claim. “You may need to provide written proof from the airline regarding the same. However, such proof is not required if the information is available to the insurer from a public source (like in this case of outage-linked cancellations),” says Chaturvedi.

Delay beyond specified time limit covered

However, it would help if you made a note of the conditions for the claims to be considered valid. The features and clauses will vary as per the insurer, product variant, and add-ons that you may have purchased.

For example, Bajaj Allianz’s domestic travel policy will compensate you for a delay beyond six hours, unless you purchase a rider at additional premium. “In this case, even delays of over 30 minutes to two hours are covered, depending on the variant chosen,” says Sethi. The policy will pay for food and accommodation not provided by the airline free of charge.

In the case of Digit Insurance, if a domestic flight is delayed by more than 75-120 minutes, the product will pay a flat amount up to the sum assured. “In the case of international flights, the insured will be eligible for the claim if the flight is typically delayed beyond four hours. However, the claim might not be admissible if the airline has communicated the flight delay to you at least six hours ahead of scheduled departure time,” says Chaturvedi.

Also read: Will Vistara flyers get compensated by travel insurance for flight cancellations and delays?

A travel insurance policy also pays for losses incurred by the policyholder if she were to miss her connecting flight. “The insurer will pay for the costs incurred for extra accommodation and travel you would have to pay to reach the next destination….you may need to provide a written confirmation from the airline stating the reason for your delayed flight,” he adds.