While airports and airlines are back online, many travellers are grappling with its aftermath Crowdstrike crash and the costs incurred to get their travels back on track.
Travel insurers are suggesting that affected passengers may have grounds to claim in certain circumstances.
Natalie Ball, managing director of Comparetravelinsurance.com.au, describes the recent outage as “unprecedented,” causing a “seismic effect on travellers worldwide”.
“Compensation through travel insurance depends on the type of cover you have and whether or not you had already departed on your journey once the outage began,” she noted.
Dubbed “the largest IT outage in history”, Friday’s global tech crash caused by an update from cybersecurity firm CrowdStrike had a catastrophic effect on travellers. The unprecedented outage resulted in disrupted check-ins, extensive flight cancellations and widespread travel delays leaving thousands of passengers stranded worldwide.
FlightAware.com reported that more than 5,000 planes were grounded, and 23,000 flights were slowed globally on Friday.
Jetstar passengers were amongst those hit the hardest, prompting the airline to cancel all flights in Australia and New Zealand on Friday night. While systems are currently operating as normal, some Australians are still stranded overseas with the knock-on effects persisting days after the outage.
Cancellations caused by airlines are not generally covered by travel insurance, said Ball. Travel services such as flights come with basic consumer rights known as consumer guarantees which state that services must be provided within a reasonable time after a delay or cancellation.
“When your flight is cancelled or delayed due to airline mechanical, technical or operational outages, it is their responsibility to compensate you, either by booking you on another scheduled service or by offering you a refund,” she added.
However, for travellers whose journey have already commenced, Ball said consumers may have provision to claim additional expenses from their travel insurer.
“Due to the extraordinary nature and extended period of this event, affected travellers may be able to seek reimbursement for additional expenses incurred provided they’re not already being compensated by the airline.”
Travellers are encouraged to contact their airline for assistance in the first instance. Failing that, passengers are advised to mitigate their losses and submit a travel insurance claim for consideration.
“Just be mindful that limits and exclusions apply,” Ball said.
What are insurers providing?
1Cover, Covermore and Southern Cross Travel Insurance are providing cover to travellers whose journeys have been affected by the outage, provided insurance was purchased prior to widespread news of the event.
“While you may be eligible to claim, be aware that cut-off times would apply. As news of the outage became widespread at around 4pm AEST on July 19th, most insurers would restrict cover for policies purchased after that time,” Ball said.
Those impacted by the outages could claim for their travel delay expenses such as meals and accommodation, along with the cost to get to a connecting flight to a significant prepaid event on time.
“Benefits differ between insurers, but some travellers may be eligible for travel delay expenses along with additional expenses for alternative transport costs to reach a pre-booked special event on time,” Ball noted.
“For example, if your flight was delayed for more than six hours and the only way you could get to your sister’s wedding on time was to book with an alternative airline, you may be able to claim the difference in your original fare.”
Travel delay benefits explained
In accordance with Australian compensation laws, airlines such as Jetstar are not obligated to account for the care of delayed passengers. Ball said that most comprehensive travel insurers would provide some cover for extended delays if you had already departed Australia.
“Depending on the length of your delay, Australian airlines are not necessarily obligated to provide cover for meals, refreshments, accommodation, or transfers. This is where travel insurance benefits may kick in. A comprehensive policy will usually provide cover for travel delay expenses once you are delayed for six hours or more. Just be wary that this benefit usually only applies to higher-priced, comprehensive policies.”
Tips for recouping costs
- Hold on to receipts and invoices: In the event of a delay, it’s important to keep proof of all purchases made. Without proof of your expenses, you may not be eligible to claim back your costs.
- Keep costs to a minimum: Stick to the basics when stuck in transit. Flashy and non-essential purchases may be denied. Avoid paying for hotel and flight upgrades unless your options are limited.
- Get it in writing: If your flight has been delayed or cancelled you will need written proof from your airline to support a travel insurance claim along with advice on whether they are providing compensation. Failure to provide such evidence could have your claim denied.
- Submit a claim: Filing a claim online is usually the most efficient way to submit a claim, particularly with widespread events where phone lines can become overloaded. Insurers prefer to keep their emergency assistance lines open for emergency situations. Uploading all your evidence documents to your claim will ensure that your claim will be processed as fast as possible.
