Weathering the unexpected: travel insurance to the rescue

When you travel, do your flights usually leave on time? Recent surveys have revealed that the average on-time rate for major airlines in the Asia-Pacific region is just 77.24%. This means that one in five flights is delayed by more than 15 minutes. Last year, a local airline cancelled over 700 flights during peak travel season – about 4% of its total schedule. These statistics highlight just how common flight delays or cancellations can be, and how they disrupt travel plans. This is where travel insurance becomes your safety net, offering protection against financial loss due to such incidents.

There are countless reasons for flight delays or cancellations: severe weather, mechanical issues, natural disasters like earthquakes, floods, or fires, and uncontrollable events such as strikes, civil unrest or airport closures. If your flight is delayed or cancelled beyond the specified time due to the reasons described above, travel insurance will compensate you for non-refundable travel and accommodation expenses if you are forced to cancel your trip. However, “air traffic control” issues or an airline’s operational decisions (such as reducing flight schedules) typically fall outside the scope of coverage. Likewise, missing your flight due to personal negligence or traffic jams won’t be covered.

If your flight is delayed and it falls within the coverage conditions, you should request documentation from the airline detailing the reason for the delay, as well as the flight number, original and rescheduled departure times, and the departure and destination points. Doing so will ensure the claims process is smooth. Note that a boarding pass is not a valid proof of delay. Providing comprehensive documentation will mean that your claim is processed efficiently.

In cases where you cannot travel as planned due to specific circumstances, such as serious illness, injury or death affecting either yourself, a family member or a traveling companion – or because of civic obligations like a court summons, jury duty or mandatory quarantine – the insurance policy will offer compensation in accordance with its terms.

Waiting out a flight delay at the airport can be nerve-wracking. To ease the stress, some insurers have introduced “Flight Delay Benefits” in recent years. By pre-registering on a designated website before the scheduled flight, you can enjoy complimentary access to airport lounges if their flight is delayed beyond a certain period. This service applies to both you and your travel companions, offering a comfortable experience while you wait. Best of all, this benefit extends globally, providing access to over a thousand airport lounges worldwide, ensuring you can relax no matter where you are.

With the Hong Kong government recently issuing a yellow travel alert for Thailand, travellers are reminded to stay updated about local conditions and remain vigilant before their departure. Most travel insurance plans include “Travel Alert Coverage”, allowing policyholders to claim compensation if a red or black travel alert is issued for their destination after they purchase their policy, forced them to cancel or cut short their trip. The compensation amount varies based on the alert level. However, if a red or black alert is already in place at the time of purchase, the situation is considered a “known event” and is not covered by travel insurance.

During the claims process, the insurance company will assess multiple factors and follow policy terms to ensure compensation for flight delays or cancellations caused by unforeseen incidents. To stay protected, it’s worthwhile purchasing travel insurance as soon as you book your tickets and accommodation. This ensures coverage even before your trip begins.

Lastly, may all your adventures be safe, worry-free and filled with joy, and create wonderful memories that last a lifetime!

This Chinese version of this article was published in the Hong Kong Economics Journal 

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