US-Iran conflict: Do your travel, life insurance policies cover you in war zones?

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• Travel insurance may not cover losses from war or hostilities
• Medical emergencies abroad are covered unless linked to conflict
• Repatriation of remains involves MEA, embassy, and insurance

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Airlines have suspended or rerouted flights across West Asia as tensions between US, Israel and Iran intensify, leaving several international travellers stranded at transit hubs. With airspace restrictions changing by the day, Indian passengers are staring at extended stays, unexpected expenses and rising anxiety over what happens if something goes wrong far from home.

From hotel bills up to medical emergencies, the fine print in insurance policies becomes critical in such events. Let us understand how different covers respond in such situations.

Flight cancellations, delays: What travel insurance pays for

While travel insurance is not compulsory for domestic trips, many international destinations require valid coverage, meaning a large number of overseas travellers are insured. However, whether a claim is accepted in case of airspace disruption depends mainly on two factors — the reason for the disruption and when the policy was purchased.

Under most standard travel insurance policies, coverage is linked to the reason for the interruption. If travellers are stranded in destinations such as Dubai, Iran, Qatar or other West Asian regions due to sudden airspace closures triggered by geopolitical tensions, claims may be considered under trip delay, trip interruption or missed connection benefits, provided the policy was bought before the situation became a "known event".

“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.

If the loss arises from an active war scenario, insurers typically exclude liability under the war exclusion clause. The complexity arises in grey areas such as undeclared conflicts, precautionary diversions or abrupt airspace shutdowns not officially termed as war. In such cases, claim admissibility hinges on how closely the loss is linked to the conflict and how the insurer interprets “direct or indirect consequence” under the policy wording.

Medical emergencies abroad

Travel medical insurance generally pays for hospitalisation, treatment and emergency evacuation.

If a traveller falls ill or is involved in an accident unrelated to the conflict, claims are usually admissible.

But injuries directly caused by military action or armed conflict are commonly excluded. If harm results from missile strikes or cross-border violence, insurers may deny claims under the war clause.

“Almost 99 percent of health insurance would not cover treatment in war affected areas. There are very few riders which covers treatment in war affected areas but cost would remain prohibitive. There are few Group insurance which covers travel to war areas, but once again, such policies are given to para medicos , journalist and photographers,” said Shilpa Arora, Co-founder and COO, Insurance Samadhan.

The cause of injury, not just the location, becomes central to claim approval.

Term insurance: Does being in a conflict zone affect payout?

Term life insurance typically offers worldwide coverage. Natural death abroad is usually covered without issue.

Complications arise if death occurs directly due to war or participation in hostilities. Some policies carry explicit war-related exclusions. Others may assess claims based on circumstances.

“As per terms and conditions, the insurance company would pay the claim. It will not pay claim if death happens due to your occupational risks. Claim will not be paid if regular or govt declares force majure,” Arora said.

“Each insurance is governed by the terms and conditions contained in the policy, and in such unexpected events, what becomes crucial is the list of exclusions, which must be carefully analysed to make a claim,” said Supriya Majumdar, Partner, Elarra Law Offices.

Experts advise travellers to carefully examine policy documents, particularly exclusions, waiting periods and sub-limits. Purchasing coverage well in advance of departure can help avoid complications related to known-event exclusions.

What happens if someone dies overseas in a conflict zone?

If an Indian national dies in a conflict zone such as Israel or Iran, the process is managed through a coordinated effort between the ministry of external affairs (MEA) and local authorities.

If the traveller had insurance covering repatriation, the insurer typically coordinates embalming, paperwork and transport to India, subject to policy limits. Without such cover, costs must be borne by the family.

Shivam Kunal, Senior Associate, B Shanker Advocates LLP, explains the process to get the body back

Registration of death: The next of kin or a nominated representative must report the death to the Indian Embassy.

Documentation required:

Medical Report/Death Certificate: Issued by the local hospital.

Police Report (FIR): Crucial for "unnatural deaths" (like war casualties) to rule out other criminal intent.

No objection certificate (NOC): Issued by the Indian mission to transport the body.

Embalming & coffin certificate: To ensure the body meets international air-cargo standards.

Passport cancellation: The deceased’s Indian passport must be cancelled by the embassy.

Clearance via eCARe: The MEA uses the clearance for after-life remains (eCARe) portal, which aims to provide Indian customs and health clearance within 48 hours of the body's arrival.

Financial assistance (ICWF): Under the Indian Community Welfare Fund (ICWF), the government can bear the cost of repatriation on a ‘means-tested’ basis if the family or employer is unable to pay.