Microsoft-Crowdstrike outage: Travel insurance will cover flight delays or cancellations, but conditions apply

The aviation sector was one of the worst hit by the global Microsoft software outage, with several airlines, including domestic carriers such as IndiGo, Vistara, Akasa and SpiceJet, having their check-in systems affected.

While some have had to resort to manual check-in, the damage has been much greater. Hundreds of flights have been cancelled or delayed in India, across all airlines.

Claims payable under travel insurance

If you have purchased travel insurance, you can file a claim. “A major technological disruption of cloud services by a major IT company has led to large-scale flight delays and cancellations, both domestically and internationally. Any delay or cancellation of scheduled flights by airlines will be covered under travel insurance,” says Vivek Chaturvedi, Chief Marketing Officer and Head of Direct Sales, Go Digit General Insurance.

You can file a claim even if the airline has paid compensation for the inconvenience. “If the cancellation and delay are covered as per the terms and conditions of the insurance policy, we will pay the claim (irrespective of the actions taken by the airlines),” says Aashish Sethi, Head, Health and Travel, Bajaj Allianz General Insurance.

If your airline has cancelled your domestic or international flight citing disruption caused by a breakdown without giving you sufficient notice (the minimum stipulated period varies by insurer and policy), you can file a claim. “You may need to provide written proof from the airline about this. However, such proof is not required if the insurer has the information from a public source (as in the case of breakdown-related cancellations),” says Chaturvedi.

Delay beyond the specified time period covered

However, it would be useful to take note of the conditions for claims to be considered valid. The features and clauses vary depending on the insurer, the product variant and any add-ons you may have purchased.

For example, Bajaj Allianz’s domestic travel insurance policy will compensate you for delays of more than six hours, unless you have purchased additional insurance with an additional premium. “In that case, even delays of more than 30 minutes to two hours are covered, depending on the variant you choose,” says Sethi. The insurance policy will cover meals and accommodation not provided by the airline free of charge.

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In the case of Digit Insurance, if a domestic flight is delayed by more than 75 to 120 minutes, the product will pay a lump sum amount up to the sum insured. “In case of international flights, the policyholder will be eligible for the claim if the flight is generally delayed by more than four hours. However, the claim may not be admissible if the airline has communicated the flight delay to you at least six hours before the scheduled departure time,” says Chaturvedi.

A travel insurance policy also covers losses incurred by the insured if they were to miss their connecting flight. “The insurer will cover any additional accommodation and travel costs you would have to pay to reach the next destination… you may need to provide written confirmation from the airline stating the reason for your flight delay,” he adds.

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In the case of Digit Insurance, if a domestic flight is delayed by more than 75 to 120 minutes, the product will pay a lump sum amount up to the sum insured. “In case of international flights, the policyholder will be eligible for the claim if the flight is generally delayed by more than four hours. However, the claim may not be admissible if the airline has communicated the flight delay to you at least six hours before the scheduled departure time,” says Chaturvedi.

A travel insurance policy also covers losses incurred by the insured if they were to miss their connecting flight. “The insurer will cover any additional accommodation and travel costs you would have to pay to reach the next destination… you may need to provide written confirmation from the airline stating the reason for your flight delay,” he adds.