It could still occur at any time, but the threat of Mount Agung erupting and unleashing fury in Bali has been officially lowered, and the danger zone has now been significantly reduced – yay!

The number of tremors is also down to fewer than 400 a day, compared to more than 1,000 relatively recently.

This now means that travellers can continue their travel plans to the idyllic island in relative peace of mind. I say relative, because Bali’s highest mountain can still blow its top at any moment, potentially disrupting the travel plans of thousands of Aussies and costing them millions.

The threat of an eruption has already cost the local Balinese economy over $200m dollars in lost tourist dollars. It’s also displaced about 47,000 villagers from their homes since September 22 when the threat of Mount Agung erupting was raised to its maximum level.

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Source: cnn.com

But should travellers take the risk and travel to Bali even though the volcano seems to be returning to its slumber? Well, it depends on who they’re insured with and when they took out the policy.

When thinking about travel insurance and natural disasters, it’s important to understand that no insurance provider will cover a traveller when the natural disaster is “known” – i.e., reported in the media.

Once a volcano starts trembling and showing all the tell-tale signs of an imminent eruption and is reported in the media, travel insurance providers will class it as a known event and anyone who takes out a policy from this date forward won’t be reimbursed for medical expenses, travel delays, cancellation costs or additional travel and/or accommodation expenses incurred as a result of the fire mountain blowing its top.

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Source: smh.com.au

But the recent news of the diminishing seismic activity on Mount Agung and the lowering of the threat level now appears that an eruption is less likely to occur, and travel insurance companies, such as TID, are now reinstating coverage to travellers in the event of any new eruption or volcanic activity effective 3pm AEDT 30th October 2017.

This means that policies taken out from today onwards will protect your pocket should Mount Agung decide to go all mental and spew lava everywhere.

“With a TID policy in your pocket, if Mt Agung roars back into life and causes your holiday to be cancelled, or strands you in Bali, you’ll have an avenue to make a claim… But make sure you read and understand your policy, its limits and exclusions before making a purchase.”

Phil Sylvester, TID spokesman.

This is fantastic news as we approach the Christmas period as travellers can start booking their holidays in peace of mind knowing that they’re totally covered should anything happen.

But TID, like any other insurance company, will be keeping an eye on the seismic activity of old mate Mount Agung, and if it’s threat levels should rise again, TID are likely to place conditions on its coverage. If you’re currently a customer of another insurance provider, it’s vital to check what their stance is on this latest update.

Stay tuned to KarryOn for more updated on the Bali volcanic situation as they arise.

Have you ever been caught up in a natural disaster on holiday? Tell us about your experiences in the comments below…