In recent weeks, a surge in bomb threats has disrupted flights across India, causing delays and heightened anxiety among travellers. With these incidents on the rise, travellers are raising concerns about how travel insurance policies apply in such situations.
Here’s how travel insurance works in these cases and what travellers can expect from their policies.
Does travel insurance cover bomb threats and hoaxes?
Travel insurance generally covers cancellations or delays related to emergencies, but policies often differ when it comes to threats or hoaxes. Shilpa Arora, Co-Founder and COO of Insurance Samadhan, explains that most standard travel insurance policies do not cover disruptions caused by false bomb threats.
“Existing travel policies do not cover interruptions caused by hoax calls. However, as this issue becomes more widespread, the insurance industry might consider changes to address it,” says Arora.
Typically, only credible threats or official advisories lead to compensation.
According to Rakesh Goyal, Director of Probus Insurance, the possibility of a claim largely depends on whether the policy defines the situation as a qualifying event, such as a verified airport closure or government-issued advisory.
“We rely on official confirmation from airlines or government authorities to assess whether the incident was an actual threat or a hoax. If the threat leads to a flight cancellation or delay and the traveller claims before the policy start date, the claim will be processed in accordance with the policy terms and conditions,” said Ajay Shah, Head – Distribution, Care Health Insurance.