Demonstrations in Hong Kong have been ongoing since June 2019. From 5 August 2019, these demonstrations have led to flight cancellations and disruption to scheduled transport services.
News of disruption to travel services due to these protests has been widely reported in mainstream media and any further disruption is deemed to be a continuation of this same movement.
“In principle” advice regarding likely policy response to claims for cancellation, disruption and delay of scheduled travel arrangements is provided below.
For Single Trip policies purchased prior to 08:30 on 7 August 2019 AEST and trips booked under Annual Multi Trip policies prior to 08:30 on 7 August 2019 AEST:
Disruption experienced post-departure
Claims for disruption to scheduled travel arrangements post-departure are considered under Section 1 or Section 10.
To claim under Section 1, your policy must include the Cancellation and Curtailment module. To claim under Section 10, your policy must include the Disruption module.
Subject to relevant terms and conditions, Section 1 will compensate the Insured Person for additional travel expenses incurred (and a proportionate refund of unused arrangements) if civil unrest prevents the planned travel from occurring.
Subject to relevant terms and conditions, Section 10 provides financial assistance in the event the departure of public transport on which the Insured Person is booked to travel is delayed by at least 12 hours. Section 10 does not operate if the Insured Person has claimed under Section 1 or 12 (Special Events) in relation to the same cause.
All Insured Persons must act as a “prudent uninsured” and proceed on the most economical basis to minimise their loss. We therefore suggest in the first instance they liaise with airlines and associated travel providers to reschedule travel arrangements / obtain refunds as appropriate. Some airlines will provide accommodation to passengers whose travel is disrupted due to unforeseen circumstances and policyholders should avail themselves of this facility if possible.
All claims for additional accommodation and travel expenses must be supported by receipts, evidence of pre-booked travel schedule and actual travel arrangements.
If the demonstrations have occurred whilst you are in Hong Kong and you cannot return home as scheduled, your policy will provide a 21 day automatic extension. This means that if you cannot return home due to circumstances outside your control, your policy will remain in place for up to a further 21 days without payment of additional premium. You don’t need to contact us to request a policy extension – this is an automatic provision.
Disruption experienced pre-departure
If you have not yet departed on the trip and your outbound flight arrangements are cancelled due to:
- Civil unrest in Hong Kong preventing the booked travel occurring as planned;
- Delayed departure of the initial outbound flight beyond 12 hours; or
- DFAT issuing a travel warning advising against travel to Hong Kong and which remains in force 7 days prior to scheduled travel;
There is provision within the policy for amendment costs or reimbursement of irrecoverable payments made in the event of total cancellation (Section 1).
In this case, Section 1 provides to cover the cost incurred to amend the policyholder’s travel to a later date / alternate route OR the cost of forfeited pre-booked travel arrangements if the trip is cancelled (whichever is the lesser). If a policyholder’s travel is affected, we retain the option to decide which of these options will be used as the basis for determining policy response.
For Single Trip and Multi Trip policies purchased on or after 08:31 AEST on 7 August 2019:
Insurance serves to provide cover for sudden and unforeseen risks. It is not possible to insure against known risks and the policy specifically excludes claims resulting from circumstances known at the time of policy purchase or trip booking and which could reasonably be expected to give rise to a claim.
Please remember that no two claims are the same and accordingly, claims are assessed on a case-by-case basis. This advice is of a general nature. Claims are assessed on their individual merits and are subject to the terms and conditions of the PDS which was in force at the time of policy purchase.
Whilst we recommend policyholders keep up-to-date with airlines, travel agents, tour operators etc, our claims team is available to advise and assist you. Please contact us on 1300 819 888 or firstname.lastname@example.org if you require assistance.