Travel Insurance – does travel insurance cover “volcanic dust cloud”?

Volcanic Ash is defined as very small solid particles ejected from a volcano during an eruption which are defined as having intermediate axes measuring 2 mm or less.

Many international travel insurance companies have recently issued statements that they will consider the “dust cloud” caused by last week’s volcanic eruption to be weather related. This is an important distinction because most typically travel insurance policies do not cover natural disasters.

In general terms travel insurance covers very specific “named perils” otherwise known as insured benefits which are listed in the policy and clearly defined. Trip Cancellation policies are not intended to cover every and any possible scenario or event that might give rise to your trip having to be interrupted due to delays and misconnections or having to cancel outright. Therefore, if the exact cause of cancellation, delay or interruption is not specified in your travel insurance policy then you are not entitled to claim any benefits.

Trip Cancellation Insurance Benefits

Does your travel insurance policy specify “volcanic eruption” or “natural disaster” as a specific benefit? In all likelihood most travel insurance policies do not specifically mention “volcanic eruptions” with the exception of RBC Travel Insurance which does cover delays and misconnections as a result of “volcanic eruptions”. Some travel insurance companies cover claims resulting from “natural disasters” but only when the “natural disaster” causes your home to become uninhabitable forcing you to cancel your trip as a result.

Most policies do however provide some form of benefits for extra cost of meals and accommodation and/or extra cost of flights in the event you are delayed or misconnect due to weather conditions. So is a “volcanic dust cloud” a weather related incident? Semantics can make all the difference in the world as it is up to the individual insurance company and their approach, each travel insurance company makes their own determination.

You need to check with you individual travel insurance company to find out what their position is going to be and depending on your situation what if any benefits you are entitled too under the terms and conditions of the policy. Tim Bzowey, Vice President of RBC Insurance was recently quoted as saying “If people have purchased cancellation and interruption insurance in their travel insurance, whether it be in a package or stand-alone basis, they’re likely to have some type of benefit related to this particular event, the volcanic ash volcano in Iceland,”, but this might not be the case for other insurance companies.

What can you expect from the airlines?

Most Canadian airlines will be allowing you to re-book your flight without penalty or get a full refund your flight was cancelled. Air Canada is allowing re-bookings at no cost for later dates — provided the availability is there and if you elect to cancel, you will get a refund. Check the website of your airline, because conditions and offers will change continually with the situation.

Many passengers may wonder whether they’re entitled to a travel voucher of other perk for having been inconvenienced. But in this case, the chances of receiving any compensation aren’t good. That’s because volcanoes are considered “acts of God” – an incident that is out of the control of the airline.

European air carriers offer more in terms of covering your hotels/meals/costs associated with delays because they are governed by an EU passenger bill of rights. But even that isn’t a certainty since some major airlines in Europe are trying to dispute that aspect of the bill of rights.

To find out what your airline’s policy is, the airline’s entitlements are listed under the its conditions of carriage or tariffs.

Travel Insurance Policy Extensions

Many travellers have been stranded in international airports or waiting in Canada to get out on flights. As a result, if your original return date of travel is going to be later than was originally planned make sure that your travel insurance company will automatically extend your policy. This is critically important because if your policy expires and is not extended you will no longer have coverage.

Always travel Safe & Secure – travel insured

Mark Anevich
Travel Insurance Expert
LinkedIn Profile

Advertisement