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AIG Australia Travel Insurance Update – 29 November 2017

Ongoing volcanic activity from September 2017 at Mount Agung in Bali Indonesia, including a recent eruption which released an ash cloud, has caused flight disruptions at Bali’s Ngurah Rai International Airport and the temporary closure of Lombok International Airport.

The recent eruption and increased seismic activity has resulted in the Indonesian Bureau of Volcanology raising the alert status of Mount Agung to the highest level, suggesting that a major eruption is possible in the near term. An exclusion zone remains in place within a radius of 10 km of Mount Agung.

What does this mean for your travel insurance cover?

Due to:

  1. the ongoing volcanic activity from September 2017, (including the recent eruptions and increased seismic  activity); and
  2. associated disruptions arising from such ongoing volcanic activity such as the imposition of the exclusion zone, the temporary closure of the Lombok International Airport and the raising of the alert level,

a number of policy restrictions and exclusions may now be in effect. These restrictions and exclusions are operative from 22 September 2017.

In particular, no cover may be provided for losses or damages in connection with such ongoing volcanic activity and the above associated disruptions unless the policy was issued or travel insurance arrangements were confirmed prior to 22 September 2017.

Travellers who purchased or confirmed travel insurance cover on or after 22 September 2017 may not be covered as the ongoing volcanic activity and associated disruptions would not be considered ‘unforeseeable’. This is due to, amongst other things, the activity being widely reported in the media from such date, including statements about the likelihood of future disruptions.

Where policies have been issued or travel insurance arrangements were confirmed before 22 September 2017, cover for trip cancellation and additional expenses incurred will be assessed against the wording of the policy.

Before we can consider a claim or provide advice on a claim, travellers should:     

  1. Confirm with their airlines that their flights have been cancelled.
  2. Contact their airlines to review alternative arrangements.
  3. Contact their travel agents or their airlines and/or accommodation providers to see what costs they will meet or amendment concessions or refunds they are prepared to provide. 

As always, each claim will be considered on its merits taking into account the individual circumstances of the claim and the terms and conditions of the policy. Travellers are advised to check their particular policy wording for eligibility, cover entitlement and the type of expenses that can be claimed.

Please note:

  i.   We are monitoring the present situation and will provide further update(s), should the position change.

  ii.  This position statement only remains applicable as long as the present circumstances prevail.


Tips for Travellers:

AIG Australia Travel Insurance – 23 September 2017

Disruptions arising out of any volcanic activity in Mount Agung, including but not limited to the airspace closures in Bali, may not be covered unless the Policy was issued or travel insurance arrangements confirmed prior to 22 September 2017. Travellers who purchased or confirmed travel insurance cover on or after 22 September 2017 may not be covered as the event would not be considered ‘unforeseeable’, having been widely reported in the media including statements about the likelihood of future disruptions from this date.

Where policies have been issued or travel insurance arrangements confirmed before 22 September 2017, cover for trip cancellation and additional expenses incurred will be assessed against the wording of the policy. As always, each claim will be considered on its merits taking into account the individual circumstances of the claim and the terms and conditions of the policy. 

Policy holders are advised to check their particular policy wording for eligibility, cover entitlement and the type of expenses that can be claimed.