One often sees a force majure clause work out with domestic flights in New Zealand, as airlines are not obligated to provide refunds or compensation if a flight is delayed or cancelled for reasons outside its control (AKA a force majure).
It can also catch out travellers who endure a major disruption and then realise their travel insurer will not cover the resulting expenses, which can be unusually high following something like civil unrest or an earthquake.
In the wake of Europe’s extreme heat waves, which caused emergency evacuations and ruined holidays for thousands, some insurance companies announced plans to include heatwave cover.
How do you know what travel insurance covers?
A good insurance company will clearly state exclusions in its product disclosure statement (PDS). For example, Southern Cross Travel Insurance PDS clearly states: “We won’t cover any claims, costs or losses or liabilities directly or indirectly arising from, related to or associated with the following,” and lists examples including war, invasion, or and government restrictions.
Southern Cross states travellers are covered in instances of riot or civil commotion if it begins after you depart on your trip and you “try your best to avoid it”.
How do you know what your tour operator covers?
As for tour companies, airlines, hotels and other tourism businesses, you must read the Ts&Cs before you finalise a booking or payment, as this is when you’re typically asked to agree to the Ts&Cs. If you find it difficult to find them, contact the company directly.
Between airlines and tax companies, group tours and accommodation, one could easily engage with a dozen or more tourism providers during a holiday. If the thought of sifting through legal documents for every company feels overwhelming, at least comb through the Ts&Cs of companies you’re spending significant money with, such as airlines and accommodation.
Reading the policies means you know exactly what you’re entitled to if things go awry before or during your holiday.
If a force majure occurs, will I be left high and dry?
It’s worth noting that a force majure clause may mean a company is not legally obligated to offer refunds, compensation or assistance during a major event. However, this doesn’t stop companies from deciding to help anyway.
If the force majure occurs before the trip takes place, it’s not uncommon to see operators offer refunds or credits. If the destination becomes dangerous during the trip, a travel operator may decide to help customers, especially if they value customer relationships or are a premium product.
For example, when a major earthquake occurred on the final night of my Intrepid trip in Morocco, the company wasn’t legally responsible for helping me pull my departing flight from Marrakesch forward two days. Yet, the company’s commitment to customers meant they chose to assist.
The important part for travellers is knowing the bare minimum their tour operators and travel insurance will cover when the unexpected happens. Because when locals set fire to a town and you’re locked in your hotel, or a severe tornado warning barrels towards you, the last thing you want is to be caught without support.
Other exclusions to be aware of
A force majure isn’t the only term you should look out for in travel insurance. Travellers should pay close attention to other exclusions before participating in an activity that could leave them with a hefty bill.
For example, in July 2023 an Australian man was left with a $400,000 bill after a trip to Bali went wrong and he realised this activity was not covered by his insurance.
