Insurance Claim Rejected After Flight Crew Timing Violation
Insurance Claim Rejected After Flight Crew Timing Violation
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
A traveler who faced a canceled flight due to the flight crew reaching their legal working hour limits will only receive partial reimbursement for his expenses.
This ruling came from an official complaints authority.
The frustrated passenger incurred additional costs when his flight from Palermo to London was unexpectedly stopped because the crew had worked the maximum hours allowed by law. He expected full coverage for these expenses under his travel insurance policy.
However, Lloyd’s Australia, the insurer, denied the claim, stating that the travel policy’s clause on additional expenses and disruption coverage only applies to events such as strikes, riots, hijacks, civil unrest, adverse weather conditions, or accidents involving the mode of transport.
The claimant argued otherwise, insisting that the crew reaching its working hours limit was akin to industrial action such as strikes, implying that the insurer had a too narrow interpretation of the policy's disruption cover. He stated that the restriction on working hours is a precaution to prevent accidents, which aligns with the "spirit of the policy".
Yet, The Australian Financial Complaints Authority (AFCA) did not accept this reasoning.
AFCA pointed out the scant information provided by the claimant which linked the flight cancellation directly to crew working hours being exceeded. They reinforced that this situation is distinct from a strike.
“A strike constitutes a deliberate refusal to work, whereas regulatory limits on work hours are a constraint and not a chosen action,†noted the AFCA's ombudsman. “Additionally, equating flight crew timing regulations with an accident scenario is not fitting, since the clause in question applies to actual incidents happening, not cancellations meant to forestall potential accidents.â€
However, AFCA acknowledged a part of the travel policy which offers coverage for scenarios where a flight is delayed over six hours due to uncontrollable circumstances.
Under this provision, the insurer is required to compensate the complainant with the policy’s cap of $2000.
“Although the insurer claims that these circumstances are specifically excluded by the policy, they failed to indicate which exclusion they are relying on and provide justification for triggering it. Therefore, it is unconvincing that the insurer has adequately clarified its entitlement to decline or reduce the claim under this section,†AFCA concluded.
This case was originally reported by Insurance News Australia.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
Recent Australian guidance on the dengue vaccine Qdenga has given travellers another reason to treat health preparation and travel insurance as connected parts of trip planning, particularly for holidays in South-East Asia, the Pacific and other dengue-prone regions. The issue is not that vaccination changes the need for cover, but that infectious disease risk, outbreak declarations and timing can all affect how well protected a traveller may be if plans change or medical help is needed overseas. - read more
Australia's latest Saudi Arabia travel warning has turned a destination safety update into a practical travel insurance issue for Australians with Middle East itineraries, religious travel plans, business trips or transit arrangements. Smartraveller's current advice is to not travel to Saudi Arabia because of the volatile security situation, with travellers told to postpone planned travel, including travel for religious purposes. - read more
Renewed attention on airline and airport industrial action overseas is a timely reminder for Australian travellers to look closely at how their travel insurance responds when transport plans unravel. Strikes can affect flights, baggage handling, airport security, public transport connections and tour schedules, turning a carefully planned itinerary into a costly scramble for new accommodation, meals and replacement bookings. - read more
Recent consumer reporting has again highlighted a familiar travel risk: some Australians are looking for savings by travelling without insurance, or by choosing the cheapest cover without checking whether it suits the trip. With airfares, accommodation and day-to-day holiday costs still stretching household budgets, it is understandable that travellers are scrutinising every expense. The problem is that travel insurance is often treated as optional until something goes wrong. - read more
Recent consumer attention on scooter and moped accidents overseas has highlighted a travel risk many Australians underestimate until something goes wrong. Hiring a scooter in Bali, Thailand, Vietnam or parts of Europe can feel like a simple holiday convenience, but insurers may treat it very differently from catching a taxi or joining a tour. - read more
Domestic travel insurance can help with some non-medical costs when travelling within Australia, such as cancellations, lost luggage, delays and rental car excess. This guide explains how it works, what it may cover and the common limits to check before you buy. - read more
The concept of travel in Australia inherently brings to mind sweeping landscapes, rugged coastlines, and vast outback adventures. For many Australians, the dream of traversing this scenic wonderland is often tempered by the cold reality of expenses, with accommodation often being a prominent budgetary concern. Yet, far from dimming the wanderlust, this challenge invites a more clever approach to journeying through the land Down Under. - read more
Travelling is one of life's greatest joys, but it's not without its risks. This is where travel insurance comes into play for Australians. It ensures peace of mind, knowing that you're covered for unforeseen events such as medical emergencies, trip cancellations, or lost luggage. - read more
Travel insurance is an essential component of any trip, providing protection and peace of mind for Australian travelers. Whether you are planning a short weekend getaway or an extended overseas adventure, unforeseen circumstances such as medical emergencies, trip cancellations, or lost luggage can quickly derail your plans and drain your finances. - read more
Planning a trip is exciting, but unexpected events can still disrupt travel plans. This guide explains how travel insurance works for Australian travellers, what to consider when choosing a policy, when to buy cover, and how to approach common travel scenarios without assuming every policy works the same way. - read more
Knowledgebase
Underwriting: The process by which an insurer determines the risk of insuring a client and decides the terms of coverage.
No comments yet. Be the first to share your thoughts.