Does travel insurance cover bomb threats and hoaxes?
Travel insurance generally covers cancellations or delays related to emergencies, but policies often differ when it comes to threats or hoaxes. Shilpa Arora, Co-Founder and COO of Insurance Samadhan, explains that most standard travel insurance policies do not cover disruptions caused by false bomb threats.
“Existing travel policies do not cover interruptions caused by hoax calls. However, as this issue becomes more widespread, the insurance industry might consider changes to address it,” says Arora.
Typically, only credible threats or official advisories lead to compensation. According to Rakesh Goyal, Director of Probus Insurance, the possibility of a claim largely depends on whether the policy defines the situation as a qualifying event, such as a verified airport closure or government-issued advisory.
Compensation for trip cancellations or delays
When bomb threats lead to trip cancellations, travellers may wonder about potential compensation. Goyal explains that reimbursement eligibility depends on the nature of the threat and specific terms outlined in each insurance policy.
“If a traveller cancels their trip following a credible bomb threat and an official advisory, they may be reimbursed for non-refundable expenses, like flights and hotel bookings,” Goyal says. Additional expenses might also be covered if alternative travel arrangements are necessary.
Arora notes that claims are often assessed on a case-by-case basis. If the airline is deemed at fault, compensation may be possible, but this scenario is rare unless authorities recognise the threat as legitimate.
How insurers evaluate bomb threats
A common concern for travellers is how insurers assess the validity of bomb threats, especially in cases of hoaxes. Goyal highlights that insurers rely on official reports from airlines, airport operators, and law enforcement to gauge whether a claim is valid.
“Insurance companies base their decision on assessments made by airlines and airport operators. If authorities classify the incident as a hoax, claims are generally denied unless security measures or advisories were issued,” explains Goyal.
Arora stresses the importance of reviewing policy details and discussing potential scenarios with insurers. Given the recent uptick in such incidents, clarity on coverage terms can help travellers make informed decisions during peak travel seasons.
What should travellers do?
As bomb hoaxes become more common, travellers should examine their travel insurance policies carefully. Arora suggests talking to insurers about how safety threats and hoaxes are handled under current policy terms.
Travellers should also stay updated on official advisories before altering travel plans. “Reimbursement is more likely if cancellations follow an advisory or airport closure,” advises Goyal.