India-Pak Tensions: Does Travel Insurance Provide Coverage Against War-Like Situations?

The escalating tension between India and Pakistan has sparked fears of a full-fledged war between the two neighbouring countries. India's Operation Sindoor and developments that followed on May 8 with the country intercepting missiles and drones aimed at key military sites by Pak has led to disruptions in air travel.

The heightened tension between India and Pakistan has hit the aviation sector with the temporary shutdown of many airports across Jammu and Kashmir, Punjab and Rajasthan. Several flights were cancelled or diverted on May 8 and May 9 as the country prepared to thwart any attack by Pakistan. As the aviation and tourism sectors could face the brunt of the escalating conflict, many travellers may have doubts about the usefulness of travel insurance during a war-like situation.

Travel insurance can act as a safety net for tourists, covering everything from minor nuisances to life-threatening situations. However, standard rules often fail to address some high-risk situations, such as war.

Travel insurance may not cover acts of terrorism, such as the one that took place in Pahalgam, but does it cover losses arising out of a war-like situation? Given the growing geopolitical turmoil in certain parts of the world, it is important to know whether your travel insurance policy covers such dire situations.

Purchasing travel insurance protects against unforeseen circumstances such as illness, cancelled trips, or misplaced bags. However, travel insurance coverage can be restricted and often has exclusions and limits when it comes to war-like situations.

Any armed confrontation between nations, states, or organised groups is referred to as war in the context of travel insurance. This generally refers to declared, undeclared and even civil wars.

Large-scale military operations and the deployment of armed troops, whether local, national, or international, are also referred to as war.

Bajaj Allianz states on its website that "losses due to war, rebellion, or terrorism" are not covered by its overseas travel policies.

According to the SBI General Insurance website, claims resulting from "war, invasion, acts of a foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power" are not covered.

Generally, most general insurers offering travel insurance don’t provide coverage against war-like situations or armed conflicts.

Events like armed conflict, civil war, insurrection, or military uprisings are not covered under regular travel insurance plans. The insurance industry has long accepted this strategy because of the incredibly high and uncertain risks involved in these circumstances, according to industry experts.

Claims by policyholders arising out of any losses in war zones or war-like situations are only approved by insurers in rare cases. This could be allowed under some exceptional conditions or specific add-on coverages, as per the terms and conditions of the policy.

When it comes to insurance, tourists travelling to risky locations should plan in advance. Customers can choose riders or add-ons to their regular travel insurance policies, as well as specific insurance coverage for high-risk locations.

These riders or add-ons can give you extra protection for evacuations, medical emergencies and trip cancellations or interruptions caused by terrorist attacks, political chaos, or government or airline-imposed travel bans.

Certain riders or add-ons might provide only limited protection. These are not included by default and need to be added individually to a basic travel insurance coverage. It’s important to note that insurers generally don’t allow add-on coverages for destinations with active travel advisories or those already classified as conflict zones.