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Home / Business / Companies / Airlines

Insurance warning for those caught in Bali volcano chaos

Grant Bradley
By Grant Bradley
Deputy Editor - Business·NZ Herald·
27 Nov, 2017 11:57 PM3 mins to read

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School students stand on a truck as Mount Agung volcano spews smoke and ash Bali. Photo / AP

School students stand on a truck as Mount Agung volcano spews smoke and ash Bali. Photo / AP

Kiwi travellers caught in the chaos following the eruption of Mt Agung in Bali face not being covered by travel insurance if they bought it since the volcano threatened to blow.

Insurers are taking different approaches to financial protection with some cutting off coverage for the volcano in September, while another, Tower, says travellers would be covered up to 9am yesterday.

Flight Centre insurer Covermore put in place a cut-off at 2pm, September 18 as at that date the eruption was not seen as an unexpected event.

Others have also put in cut-offs around that date in September.

Sean Berenson, Flight Centre NZ general manager product said, however, that any resulting claims would be looked at on a case by case basis.

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There had been a number of events around the world, such as earthquakes, tsunamis and volcanoes, which highlighted the importance of travel insurance.

"We recommend anyone soon to travel overseas to make sure they have sufficient cover for their trip," he said.

"It's a timely reminder that insurance should be purchased at the time of booking."

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Berenson said travellers should also consider taking annual travel insurance to cover all eventualities.

A team of Flight Centre staff was advising clients from around the world.

About 1000 New Zealanders in Bali had booked travel through Flight Centre, he said.

More than 400 flights to and from Bali have been cancelled and nearly 60,000 travellers have been stranded after the airport was closed yesterday, AAP reported.

Discover more

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Bali airports closed, thousands stranded

27 Nov 05:32 AM
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How airlines ground flights during disasters

27 Nov 09:31 PM
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Major eruption imminent, says Indonesia

28 Nov 05:39 AM
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Bali eruption: Inside the belly of the beast

29 Nov 08:13 AM

While the number of Kiwis going to Bali had surged during the past year, this was not the high season. Air New Zealand operates flights there during winter.

Australians, including "schoolies" are most affected as they continue to pour into Bali.

New Zealand Insurance Council chief executive Tim Grafton said people were advised to contact their airline or other travel provider they booked with first, and then their travel insurer.

'"If you face extra costs or lose out on something you pre-booked, your travel insurer may pay those extra costs or loss if it is covered by your policy," he said.

Travel providers may be able to rebook arrangements without extra costs.

Grafton said if travellers did suffer extra costs, they should make sure they keep receipts.

Travellers needed to buy travel insurance when they booked and paid for their tickets and not just before they are about to travel if they wanted to enjoy the benefit of cancellation cover.

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"Likewise, if you book a trip and buy insurance after events like a volcano erupting or an imminent hurricane which has been publicised, you will not have cover for those events."

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