Earthquake – Taiwan 03.04.2024
A 7.5 magnitude earthquake recently struck off the coast of Taiwan, causing significant damage to infrastructure and potential disruptions to essential services, including transportation. This event has prompted tsunami warnings in coastal areas of the Philippines facing the Pacific Ocean and Japan. If you’re in an affected area, it’s crucial to prepare for aftershocks, take tsunami warnings seriously, stay updated through media channels, and heed advice from local authorities.
For travellers, it’s essential to remain updated with the latest advice for Taiwan Earthquake from SafeTravel. Additionally, here’s guidance on likely policy responses for claims related to cancellation, disruption, and delay of scheduled travel arrangements:
“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 12:00pm AEST on 03 April 2024 and trips booked under Annual Multi Trip policies prior 12:00pm AEST on 03 April 2024.
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 a natural disaster 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 individuals with insurance coverage are expected to behave as if they were uninsured, taking the most cost-effective measures to mitigate their losses. As a first step, we recommend that they communicate with airlines and related travel services to rearrange travel plans or secure refunds as necessary. In cases of travel disruption caused by natural disasters, some airlines may offer accommodation to affected passengers, and policyholders should take advantage of this option if available. All claims for additional accommodation and travel expenses must be supported by receipts, evidence of pre-booked travel schedule and actual travel arrangements.
If this event in Taiwan determines that 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:
- Natural disaster 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 the affected region 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.
Many airlines will offer full refunds or rescheduling at no cost in the event of cancellation due to natural disasters and we would recommend policyholders liaise with the airline/s, travel agent/s and associated travel providers to minimise any loss / claim.
For Single Trip and Multi Trip policies purchased on or after 12:01pm AEST on 03 April 2024
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.
Whilst this advice details a preliminary assessment of potential policy response, it is anticipated that no cover will be afforded for any claim arising from the earthquake in Taiwan for policies purchased on or after 12:01pm AEST on 03 April 2024, or trips booked under an Annual Multi Trip policy on or after 12:01pm AEST on 03 April 2024.
GENERAL NOTE:
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 if you require assistance.