A couple who missed their flight home to Auckland say they were left more than $3000 out of pocket after their travel insurer declined their claim under an entry-level policy.
Clare West and her partner had booked return flights from Auckland to Ho Chi Minh City through Flight Centre, purchasing travel insurance from Europ Assistance at the same time.
After spending two weeks travelling Vietnam, the pair planned to return to New Zealand on November 1, flying from Hanoi to Ho Chi Minh City with VietJet to connect with their international flight home the day before.
That domestic flight was delayed by several hours, with VietJet later confirming the disruption was due to an “operational issue”.
“We missed check-in by five minutes,” West told the Herald.
“I ran from the domestic terminal to the international terminal while my partner got the bags and we got there and [the check-in staff member] said, ‘No, check-in’s closed’.”
With no assistance offered by the airline and needing to return to work, the couple booked new flights via Sydney at a cost of more than $3000, more than their original return fares.
Before purchasing the replacement tickets, West said she contacted Europ Assistance to ask for advice.
“I phoned the travel insurance company and said, ‘Look, this is our situation. What do we do?’ And the guy said, ‘Yeah, you should be covered under clause C1 for expenses incurred due to a travel delay’.”
West kept receipts and documentation and lodged a claim after returning home, but the process dragged on for weeks as Europ Assistance requested additional information, including written confirmation from VietJet of the cause of the delay.
In mid-December, her claim was declined.
Europ Assistance cited a policy exclusion for “claims arising from cancellation, delay or rescheduling of your public transport for operational reasons, mechanical breakdown or maintenance”, a decision that came as a shock for West.
“We were completely sensible and cautious when I heard the flight was going to be delayed. And still, we end up over three grand out of pocket.”
Europ Assistance ANZ chief executive Justin Sebire said the outcome reflected the level of cover West had purchased.
“We’re really sorry to hear about the disruption our customer experienced and understand how frustrating it can be to miss a flight due to delays outside someone’s control,” he said.
“In this instance, the customer held a Bronze level of cover and while this includes a range of protections, Section D - Travel delay expenses does not apply to the Bronze plan."
Exclusions for delays caused by operational reasons were standard across the insurance industry, Sebire said, noting that responsibility for such disruptions usually sat with airlines.
Consumer NZ said West’s experience highlights a common trap for well-meaning travellers, particularly when domestic and international flights are booked separately.
“Although consumers may be surprised to find they are not insured in these circumstances, these clauses are not uncommon in travel insurance policies.
“They exist because operational disruptions are usually the airline’s responsibility. However, difficulties can arise when consumers make separate bookings for international and domestic flights.
“In these cases, passengers may find they have no insurance cover, and no cover under aviation laws.”
The organisation argued insurers should use clearer wording and avoid relying on broad definitions to narrow coverage, in the interest of travellers not being left paying off a hefty bill.
“We think all terms should be all clearly defined in insurance policies, and definitions should not be used to narrow the scope of cover.”
West said the experience has left her questioning the value of travel insurance altogether.
“It’s a pretty standard thing that’s going to go wrong on your trip, right? Missing a flight and having to buy a new one,” she said.
“So for people who think they are covering themselves, they’re probably not covered.”
An internal dispute resolution process initiated by Europ Assistance earlier this month concluded the insurer had acted in accordance with its policy.
Europ Assistance said customers unhappy with a claims decision or the resolution process can escalate the matter to the Insurance & Financial Services Ombudsman Scheme.
Tom Rose is an Auckland-based journalist who covers breaking news, specialising in lifestyle, entertainment and travel. He joined the Herald in 2023.
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