UAE flights: Refunds and insurance payouts - what travellers need to know

Dubai: More UAE residents are spending on travel insurance – and not just on trips where getting a visa requires that the individual must also be covered for travel insurance.

There are clear areas where compensation is offered to the individual under the travel insurance policy – and others where the policy just cannot come into play. Like the current crisis caused by the Israel-Iran conflict.

Such as the situation the global airline industry is facing because of the Israel-Iran situation.

“If a flight is cancelled or delayed due to war, civil unrest, or government-imposed airspace restrictions, most travel insurance policies will not provide compensation,” said Avinash Babur, CEO of InsuranceMarket.ae. “These events typically fall under ‘general exclusions’ related to war, terrorism, or state intervention.

“Only certain high-tier or specialized products may provide some coverage under such circumstances - and these are uncommon in the mass travel insurance market. In such cases, travelers must rely on the airline or local consulate for support, rerouting, or refunds.”

The past week, many airlines and travellers have had to adjust their schedules after the outbreak of hostilities between Israel and Iran. Airspaces have been closed, flights cancelled, and passengers found the need to make circuitous trips just to get to where they wanted to.

Given the gravity of the crisis since last Friday, airlines have proved to be extremely flexible in trying to offer solutions/options for affected travellers.

“Airlines are extending refunds or allowing date changes (to travel plans),” said Avinash Adnani, CEO of Neo & Pluto Travels in Dubai. “But this only when the airline itself cancels the flight.

“If a traveler opts to cancel voluntarily—while flights are still operational—the airline’s regular cancellation policy typically applies. Tour operators and hotels are showing flexibility during this period, with many offering either full refunds or the option to reschedule bookings without penalty.

“However, travelers who booked through online platforms may face more challenges. The refund process via these channels can be tedious, often requiring multiple follow-ups through emails or call centers.”

With the latest Middle East crisis in its second week, many UAE residents have already changed some of their holiday plans. But again, this is route-specific. “Those UAE residents with flights booked to India or the Subcontinent have no reason to change their schedules,” said Shamshudeen Perambil, founder of Delta Destinations.

“Yes, when it comes to European sector, UAE and Gulf travelers are mostly delaying their plans, not canceling outright. The cancellations are mostly from the other side.”

When it comes to refunds, Perambil said that in some cases airlines are offering refunds ‘even when the traveler has taken a non-refundable ticket’.