With Gulf airspace closed and airlines cancelling thousands of flights after US-Israel strikes on Iran, millions of Australians with upcoming travel are asking the same question: Am I covered by my travel insurance? The short answer, for most, is no.
Of 22 Australian travel insurance providers analysed by Finder, not one offers standard cover for acts of war. With more than 2,300 flights cancelled across the region, Dubai International Airport itself damaged by Iranian retaliatory strikes and airspace shut across eight Middle Eastern nations, the insurance gap is about to hit a lot of Australian wallets.
Does travel insurance cover acts of war?
No. Standard Australian travel insurance policies explicitly exclude claims arising from war, acts of war, rebellion, revolution or military conflict, whether formally declared or not. According to Finder’s analysis, this is a blanket exclusion across every provider reviewed.
Australian Travel Industry Association (ATIA) CEO Dean Long warned that “war and conflict are often not covered under insurance policies. We have seen a number of countries actually taken off travel insurance policies as those conflicts have picked up, so you need to be very aware of that and how that works.”
If your flight has been cancelled, your Emirates connection rerouted, or your UAE holiday is now impossible because DFAT has raised it to “Do not travel”, your travel insurance is unlikely to help.
What if you are already overseas?
An estimated 150,000 to 200,000 passengers globally were stranded or diverted in the first 24 hours after strikes began on February 28. Dubai International, the world’s busiest airport for international passengers, sustained concourse damage, and four workers were injured.
If you were mid-trip when the conflict escalated, your policy may cover some additional expenses under “travel delay” provisions, but if your insurer determines the disruption is war-related, they may still deny the claim. Contact your airline first, then your insurer, and read the PDS before lodging anything.
Does a DFAT ‘Do not travel’ advisory void your insurance?
In most cases, yes. As of this weekend, DFAT has raised the UAE (including Dubai and Abu Dhabi), Qatar, Bahrain, Kuwait, Lebanon and Israel to level four. Iran, Syria and Yemen were already there. Jordan sits at level three.
For the roughly 6.9 million Australians planning international travel in the next 12 months, according to Finder, that is a significant swathe of the map now outside standard insurance cover.
And here is the trap many travellers miss: a Dubai or Doha layover, even a two-hour transit, can void coverage for your entire trip. You do not need to be travelling to the Middle East to be caught by this. You just need to be transiting through it.
Will the airline help?
If an airline cancels your flight, you may be entitled to a refund or rebooking under conditions of carriage or Australian Consumer Law. But the ACCC notes that when government-imposed airspace closures prevent an airline from operating, consumer guarantee rights may be limited.
In practice, the picture is grimmer. Many airlines are now suspending entire route networks rather than cancelling individual flights, a distinction that affects what passengers can claim. At the time of writing, Lufthansa Group has suspended services to multiple Middle Eastern destinations until at least March 7.
Crucially, Gulf-based carriers, including Emirates, Etihad, and Qatar Airways, operate in jurisdictions with no passenger protection framework equivalent to Europe’s EU261. There is no legal obligation for these airlines to provide hotels, meals or transfers to stranded passengers. Any assistance is discretionary. Passengers booked with EU or UK carriers have stronger protections, but for the millions of Australians who fly Gulf carriers through Dubai or Doha, that safety net does not exist.
ATIA CEO Dean Long reinforced the key message this weekend: “Do not cancel arrangements without first seeking professional advice.” Long said airlines have established systems to deal with disruptions and will cancel or reschedule flights if airspaces are unsafe.
“Sitting still, waiting for the airline and the agency to contact you to support you through that moment is the most important aspect,” he said, urging travellers not travelling within 48 hours to hold off contacting their advisor so agents can prioritise those currently stranded.
If the airline cancels or suspends your flight, you retain any refund and rebooking rights that exist. If you cancel first, you fall back on the fare’s standard terms, which, for most discount fares, mean little to no refund.
What should travellers do right now?
Contact your airline or travel advisor as advised. Do not cancel bookings yourself. Read the exclusions in your PDS, particularly on war and DFAT advisory levels.
Check Smartraveller’s Middle East conflict page for the latest advisories. Cancel for Any Reason (CFAR) add-ons exist in some markets but remain rare and expensive in Australia.
If booking new travel, consider refundable fares and routes that avoid the Gulf entirely.
For the latest on flight cancellations and airline responses, read Karryon’s rolling coverage here.
