Iran war: 10 reasons why your travel insurance may fall short – what to do if it does

Dubai: Airspace disruptions following US and Israeli strikes on Iran have triggered widespread flight cancellations across major transit hubs. Thousands of travellers have been affected as airlines suspended or rerouted services across the Middle East.

Many expected travel insurance to act as a financial backstop. In practice, standard policy wording leaves significant gaps. Travel advisors across the industry have been warning where coverage breaks—and outlining what travellers should do. Here’s a breakdown:

1. War, military action typically excluded

• Most policies exclude losses linked to war, military strikes, and political unrest

• This applies whether the conflict is declared or ongoing

• Claims tied directly to the Iran conflict are often rejected

What to do:

• Check the “general exclusions” section carefully

• Do not assume conflict-related claims qualify

• Contact your insurer to confirm scope

2. Closures, cancellations may not be covered

• Government-mandated airspace shutdowns fall under standard exclusions

• Airline suspensions linked to conflict may not trigger payouts

• Travellers may not recover costs for unused tickets or new bookings

What to do:

• Approach airlines first for refunds or rebooking

• Keep receipts and cancellation notices

• Check credit card protections where applicable

3. Non-refundable trip costs are at risk

• Missed trips may not be reimbursed

• This includes flights, hotels, and prepaid tours

• Cancellation and interruption benefits often exclude war-related events

What to do:

• Identify refundable vs non-refundable expenses

• Submit claims only where policy wording supports it

4. Out-of-pocket costs not reimbursed

• Additional hotel stays, meals, and rebooking costs may be excluded

• Especially if delays are directly tied to military action or airspace closures

What to do:

• Track all expenses in detail

• File under “travel delay” benefits if eligible

5. “Known event” rules can limit claims

• Insurance covers ‘unforeseen’ events

• If the conflict was public before booking, claims may be denied

What to do:

• Compare booking dates with when the conflict escalated

• Keep a clear timeline when filing claims

6. Cancelling due to safety concerns

• Feeling unsafe is not typically an insured reason

• Policies usually require illness, injury, or defined emergencies

What to do:

• Check if you purchased “cancel for any reason” cover

• Without it, cancellation claims may not succeed

7. Terrorism, war treated differently

• Some policies cover isolated terrorist incidents

• Full-scale conflict is usually excluded under war provisions

What to do:

• Review how your policy defines “terrorism” and “war”

• Do not assume overlap between the two

8. Indirect disruptions still covered

Secondary effects—such as delays or missed connections—can qualify. This includes: Airline rerouting, crew rescheduling, operational delays linked to network disruption

What to do:

• Break claims into specific categories

• File under delay or disruption benefits separately

9. Add-ons offer limited flexibility

• “Cancel for any reason” or “interruption for any reason” upgrades can provide partial reimbursement

• These must typically be purchased shortly after booking

• Payouts are often capped

What to do:

• Review whether you added these options

• Check reimbursement limits and timing conditions

10. Medical cover services still matter

• Emergency medical treatment is usually covered if not directly caused by conflict

• Evacuation and repatriation benefits may still apply

• Insurers may provide coordination support even if claims are denied

What to do:

• Contact emergency assistance services immediately if needed

• Use approved medical providers

• Keep all medical and communication records

What travellers in UAE must check

• War and geopolitical exclusions

• Medical coverage limits abroad

• Access to 24/7 emergency assistance

• Trip delay and disruption benefits

• Policy validity and coverage dates

If you are stranded abroad:

• Insurance may not cover conflict-related costs

• Airlines and tour operators often become the first point of resolution

• Insurers may still assist with logistics

What to do:

• Contact your airline and insurer immediately

• Save all correspondence and receipts

• Monitor flight updates and advisories

Bottom-line: Travel insurance is structured around unexpected disruptions—not large-scale geopolitical conflict. Understanding where coverage stops is critical before relying on it.