Widespread power outages across parts of Europe have prompted new scrutiny of travel insurance coverage for Australians, as travellers question whether they can claim compensation for delays and disruptions tied to infrastructure failures.
The blackout, which affected Spain, Portugal, and France in April, led to widespread interruptions across transport systems, payment networks, phone services, and metro operations. Around 500 flights were cancelled, affecting tens of thousands of passengers and creating ripple effects across the region’s transport hubs.
While utilities have since restored electricity, the incident has drawn attention to gaps in travel insurance protection – particularly for events not triggered by physical damage or extreme weather.
Airlines including Iberia and EasyJet provided options such as rescheduling, vouchers, and free transfers within a specified period. However, many affected passengers are ineligible for further compensation under airline regulations, as the outages were deemed outside airline control.
Natalie Ball, director of Comparetravelinsurance.com.au, said insurance responses to this type of event depend heavily on policy wording and insurer interpretation.
“Typically, travel insurance policies do not cover losses resulting from technical issues within the travel service providers’ control. However, some insurers made exceptions due to the unprecedented nature of the CrowdStrike incident on July 19, 2024,” she said.
She explained that certain insurers might cover outages triggered by physical incidents, but unplanned drops in power without clear causation are frequently excluded.
“Some insurers may cover outages under specific circumstances. For instance, outages caused by physical accidents may be covered; however, an outage caused by a power dropout may be excluded from cover. Claims of this nature would also be assessed on their own merit, so be mindful that cover may not be granted for every scenario,” Ball said.
Ball added that purchasing a policy after an incident has gained widespread media attention may void coverage for related claims. Some insurers also apply a waiting period – often around 72 hours – before full benefits take effect.
Travellers impacted by such disruptions are advised to retain all expense records and seek clarification from their airline before approaching their insurer. Emergency support may still be accessible through insurance hotlines, particularly for health or repatriation needs.
Focusing on overseas travel, insurers are also highlighting an increase in travel insurance claims linked to motorbike and scooter use abroad, particularly in Southeast Asian destinations.
A recent survey conducted by Zoom Travel Insurance found that 40% of respondents were unaware that operating a scooter or motorcycle without the appropriate licence could invalidate their insurance coverage.
Zoom’s marketing manager, Natasha Sullivan, said many travellers assume insurance will automatically cover scooter hire without realising the conditions involved.
“Too many tourists assume they can hire a scooter without the correct license. Tourists planning to hire a scooter or motorbike must ensure they are properly licensed in order to be covered by travel insurance. Should they fail to do so, they’d likely not be covered by travel insurance in the event of an accident,” she said.
Another area of concern for the Australian travel insurance sector is the legal framework in New Zealand, where a no-fault accident compensation scheme prevents personal injury lawsuits – even in cases of demonstrable negligence.
Peter Carter, director at Queensland-based Carter Capner Law, noted that Australians often assume the legal systems are similar across both countries.
“As Australians we naturally assume that because at-fault motorists, workplaces, and business enterprises carry insurance and can be pursued for losses resulting from major injuries – it would be the same across the ditch. But in New Zealand, careless drivers and businesses are immune from liability for the injuries they cause other people,” he said.
He pointed to a case where an Australian was left with spinal injuries following a crash with a speeding driver but was unable to pursue compensation due to the local legislation.
Carter recommended that brokers explain these legal differences clearly to clients and consider advising on income protection policies as an additional safeguard, as standard travel insurance may not provide wage support after injury.
