Aussie travellers urged to lodge claims for loss amid US-Iran conflict as ‘significant event’ declared by peak insurance council

Travellers impacted by the US-Iran conflict have been urged to lodge travel insurance claims if they have suffered any losses, even if they are not sure of their coverage.

That’s the advice of the Insurance Council of Australia (ICA) as the tension in the Middle East plunges world travel into chaos.

The industry body encouraged claims to be made despite exclusions for war and conflict being standard across most insurance products.

The conflict has left more than 115,000 Australians stuck in the region with many more stranded in Europe as thousands of flights have been suspended.

To amplify industry support, the ICA declared the conflict in the region a “significant event”, allowing itself, policymakers and insurers to assess the insurance impact.

“We encourage those in transit, or with upcoming travel plans, to speak to their insurer if they have suffered a loss and believe they have a claim,” ICA chief executive Andrew Hall said.

“Each claim is assessed on its own merit and insurers are armed with information to support those impacted.”

ICA said an industry-wide taskforce had been established and it had started collecting data and analysis.

The move follows prices for return flights with a major airline soaring as high as $15,900 amid the travel fallout.

Singapore Airlines’ prices have fluctuated since the start of the conflict, with an average economy flight through to Australia costing as much as $2600.

On airline’s website, a one-way business class flight from Zurich, Switzerland to Brisbane, Australia is estimated to cost $15,900 if booked for Wednesday.

In a statement, a Singapore Airlines spokesman said: “Our airfares are dynamic and subject to change.

“They fluctuate based on a variety of factors, including proximity to proposed travel date, seat availability, the booking class selected, and the specific dates of the flights or itineraries.”

One-way tickets on economy seats from China Eastern, Cathay Pacific and British airlines to Sydney from Rome or Frankfurt are also priced highly between $3000 to $3500.

The price hikes mean thousands of Australians left stranded overseas are likely to be spending a small fortune just to get home, as the conflict throws the global airspace into chaos.

Iran’s response to the US and Israel strikes on Saturday has resulted in airspaces across the Middle East region being shut, including Iran, Iraq, Israel, Syria, Kuwait and the United Arab Emirates (UAE).

With many flights from Australia to Europe being trafficked through this region, numerous flights are being delayed, rerouted, or cancelled.

Airspace and airlines

Virgin Australia continues to cancel its upcoming flights between London Heathrow and Dubai as well as flights between London Heathrow and Riyadh.

Virgin Australia services operated by Qatar Airways also remain affected by the ongoing closure of Qatari airspace.

Nineteen flights scheduled for Tuesday till Thursday have been cancelled.

This includes flights departing from Sydney, Melbourne, Brisbane, Perth and Doha.

The airline is offering free booking changes, travel credits and refunds for travellers booked on its flights to Doha up to and including March 6.

Qantas said there were no impacts on its scheduled flights, including flights between Singapore and London.

However, a flight from Perth to London may operate via Singapore for a “fuel stop due to adjustments required for flight path”.

This is because airlines, including Qantas, that normally fly above the Middle East are rerouting and using longer alternative routes.

Qantas does not operate any aircraft into Middle East airports but is providing extra flexibility for customers who have booked flights to or from or via the UAE, Qatar, Israel, Jordan and Oman through Qantas partner airlines.

Emirates, which had temporarily suspended all flights to and from Dubai, operated a limited number of flights on Monday evening.

However, travellers have been notified to “not go to the airport unless you have been notified” and that all other flights remain suspended until further notice.

On Tuesday alone, the airline has cancelled almost 500 flights.

Qatar Airways said it would resume operations once the Qatar Civil Aviation Authority announced the safe opening of Qatari airspace.

The airline has cancelled 423 flights on Tuesday.

The UAE government has committed to covering hotel accommodation cost for affected travellers until flights can be arranged.

Airlines including British Airways, Japan Airlines, Lufthansa, Turkish Airlines, and Wizz Air have all paused flights to and from the region.

Best advice for Aussies

The Australian government has warned against all travel to the Middle East.

The Department of Foreign Affairs and Trade (DFAT) has advised Australians to not travel to Bahrain, Israel, Kuwait, Lebanon, Qatar, the UAE, Iran, Iraq, Palestine, Syria and Yemen.

They have also warned Australians in Iran to leave as soon as possible if safe.

Smartraveller has raised its level of advice, enforcing a “do not travel” notice to Israel, Kuwait and the UAE.

Due to the overall security situation in the region, the level of advice for Jordan has been raised to “reconsider your need to travel”.

Smartraveller says there is “risk of further reprisal attacks and escalation across the region, “with travel in the region being heavily advised against”.

These notices are in place due to retaliatory and military strikes, flights, roads and borders being subject to sudden closure and a volatile security situation.

Travel insurance polices tend to normally exclude cover for loss or injury arising from war, armed conflict or civil unrest.

This is because it could inadvertently encourage travellers to take risk.

Some policies can cover limited cancellation cost but cover can be voided if travellers proceed to travel against official warnings.

For flight issues involving delays, cancellations and rerouting, the Insurance Council of Australia has advised for travellers to contact their airlines or travel providers directly.

The DFAT has also opened registration for Australian citizens, permanent residents and immediate family members in Iran and Israel to send updates directly.

Airlines operating between Australian, Europe and the UK are rerouting and using longer alternative routes to avoid the region.