Indo-Pak conflict cancels flights: Does travel insurance cover costs?

Business Standard

14-05-2025

As geopolitical tensions rise, travellers wonder if their insurance will cover flight cancellations if airports shut down due to conflict. Here's what you need to know about travel insurance.
During India's Operation Sindoor, over 300,000 flight tickets were cancelled between May 7 and May 12, aviation industry sources told Business Standard. This is a common practice during such conflicts across the world.
Force majeure?
But what happens to the fliers' money in such a scenario? Does travel insurance cover flight cancellations if airports shut down due to conflict?
The answer is not that straightforward.
Standard policies often exclude war-like situations
'Flight cancellations caused by operational issues or sudden airport closures are generally covered under standard travel insurance policies,' says Sameer Mathur, MD and founder, Roinet Solution.
'However, if the disruption is due to an officially declared war, that falls under exclusions,' he said.
Insurers typically classify events like war, terrorism, or civil unrest under 'force majeure' or 'exclusions,' meaning claims under such circumstances may be denied.
'Most standard travel insurance policies clearly state that losses due to geopolitical conflicts, such as war or terrorism, are not covered,' adds Manish Kumar Goyal, CMD, Finkeda.
Special add-ons could offer some relief
While base policies may fall short, some specialised products offer limited protection.
'There are add-ons like Cancel for Any Reason (CFAR) that allow partial refunds even in such situations, but they must be purchased early and come at an extra cost,' Goyal explains.
Key features of CFAR coverage:
Must be purchased within a set window after booking travel
Costs more than regular insurance
Allows trip cancellation for almost any reason
Reimburses a portion (typically 50–75 per cent) of non-refundable expenses
However, Mathur clarifies that in most Indian policies, no standard plans include war-related disruptions, and no add-ons currently cover full cancellation costs due to geopolitical conflict.
If you're caught in such a scenario, it's vital to document everything.
'Travelers should keep tickets, identity proofs, and a cancelled cheque handy to submit claims,' Mathur advises. 'Each case is subject to evaluation, but basic documentation is essential.'
Bottom Line
Travellers must check the policy document thoroughly before purchasing and consider add-ons if travelling to or near conflict-prone regions. In uncertain times, preparation and awareness are the best safeguards.