The government of Iran has formally acknowledged that the downing of the Ukraine-bound Boeing jet, which resulted to the deaths of all 176 passengers on board, was caused by damages sustained after the firing of an Iranian missile.
Although such incidents have been known to happen during times of unrest and international political conflicts, the Iran incident has once again drawn focus on travel insurance during times of uncertainty arising from acts of terrorism and political tensions.
Basically, travel insurance does not cover mishaps resulting from acts of aggression related to war and political conflicts. This means that for standard travel insurance policies, any untoward incident that happens as a result of a war-related attack, regardless of how, where and when the incident took place, travel insurance companies have the right to refuse coverage.
The right of travel insurance companies extends to refusal to reimburse travellers who decide to cancel a trip in light of escalating political conflict that has made it unsafe for them to travel. In that regard, governments issue the necessary travel advisory to inform their citizens.
Still, there are certain concessions that many travel agencies offer in allowing travelers to collect reimbursements on cancellations during times of unrest and uncertainty.
Acts of Terrorism Qualifies as Reasonable Ground for Cancellation of Travel Insurance
Insurance coverage against acts of terrorism, as offered by most insurance companies, qualifies as standard basis for cancellations. In the event that claims for damages sustained as a result of terrorist actions, the government in which the incident took place must officially declare it as an act of terrorism.
When looking to cancel a travel insurance coverage that include coverage for acts of terrorism, it must be that a traveler cancelled the covered trip once acts of terrorism have occurred near or in his or her travel destination. Moreover, travel cancellation must have been made within 30 days of the scheduled arrival in that destination.
Upgrade a Travel Insurance with “Cancel for Any Reason” During Times of Uncertainty
Inasmuch as unpredictable situations underscore the critical importance of having travel insurance coverage, travellers who are prevented from cancelling a scheduled trip can still seek protection by upgrading their policy with a “Cancel for any Reason” (CFAR) clause. This upgrade allows reimbursements in case travels are canceled due to escalating conflict that lead to war attacks.
Still there are certain conditions to be met in order to qualify for CFAR option. First off, a traveler must have contracted and paid for the policy within 21 days of booking the related trip. Those contemplating to include this option in their policy should be aware that it would cost them 40 % more than a standard insurance coverage. In the event that reimbursements for cancellation will be claimed, only 75% of the incurred travel costs will be covered.
The information provided above is part of the information campaign launched by Squaremouth Information Center about their insurance coverage for “Iran Political Unrest Travel Insurance.”