Exclusions for War, Rebellion and the like Under Travel Policies

http://www.dreamstime.com/-image14630865Some travel agents are advising their clients that their travel policies do not cover any losses arising through the terrible events leading up to the loss of Malaysian Airlines ML17.

A week or so back, I looked at exclusions in respect of acts of terrorism and the war exclusion was raised today at a conference I am speaking at. (ANZIIF’s Industry Insight 2014 in Redcliffe, Queensland).

As with the terrorism exclusion, travel policies do differ. The better quality ones in the Corporate Travel area have a very narrow exclusion. An example taken this time from Zurich Corporate Travel policy reads:

Excludes (a) war civil war invasion insurrection revolution use of military power or usurpation of government or military power in Australia or an Insured Person’s country of residence or in Afghanistan Chechnya Iraq North Korea or Somalia (b) civil unrest under Section 4 – Travel Disruption in circumstances where the civil unrest was in existence or there had been published warning that such events were likely to occur prior to the Insured Person booking their journey, unless otherwise agreed with Insurer cover ceases after the 7th day of any outbreak of war or civil war within Iraq Afghanistan North Korea Somalia or Chechnya – p22/35/37

Some Corporate Travel policies and all the private travel and credit card policies I was able to review during breaks in the conference had a blanket exclusion for war.  A typical wording reads:

War or warlike activities, invasion, acts of foreign enemies, civil war, revolution, insurrection, or act of military power.

Based on what is being reported on the television, it would appear that policies with this or a similar exclusion would not cover any losses, that is: loss of life, repatriation of the bodies, baggage or anything else from the ML17 incident.

These insurers are taking the stance that this is a political event that government should be responsible for.

As a general rule of thumb, a good Corporate Travel Policy offers the broadest coverage.

It again shows the importance of knowing the coverage you have or are recommending. Another good reminder to use PolicyComparison.com.


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