What do Lombok earthquakes mean for your travel insurance?
The ongoing battering means your travel insurance could be at risk.
Four quakes rocked the Indonesian tourist island on Sunday, exactly three weeks after a devastating 7.0 magnitude earthquake killed more than 450 people.
Sunday's most powerful quake was a magnitude 6.9 and luckily no injuries have been reported. It has been classified as a new mainshock, meaning it is not an aftershock related to any of the preceding quakes.
Under normal circumstances, anyone buying travel insurance after one of the previous quakes would be covered against the new mainshock, because it is considered a new event that is unrelated to any earlier quakes.
However, there's a good chance you could be denied cover if you purchased your policy after the major 5 August earthquake hit. Due to the sheer size of the original disaster and the fact that the the Department of Foreign Affairs and Trade has issued a travel warning for Lombok, your insurer could argue that a reasonable person should have expected travel disruptions regardless of whether or not it is an aftershock.
The following table highlights Australian insurance brands who have issued policy statements regarding the current state of affairs in Lombok. If your insurer is not listed, or if they only mention what happens if you bought your policy before 5 August, it is best that you call them to clarify their position.
How are brands treating their cover of the Lombok earthquakes?
| Provider | Update | Am I covered? |
|---|---|---|
| 1Cover | 6 August | 1Cover doesn't mention whether new policies cover future earthquakes. However, it has issued this statement for those who have already gotten a policy: "... if your pre-booked travel arrangements are cancelled, delayed or rescheduled as a result of the Lombok earthquake and you have not yet departed, you may have provision to claim for cancellation or rearrangement of your journey (whichever is the lesser)." |
| Cover-More (AU) | 5 August | No coverage for earthquake-related claims in Lombok, Indonesia, if you purchased your policy after this date. |
| Downunder Insurance | 6 August | Downunder Insurance doesn't mention whether new policies cover future earthquakes. However, it has issued this statement for those who have already gotten a policy: "... If you've already gotten a policy, if your pre-booked travel arrangements are cancelled, delayed or rescheduled as a result of the Lombok earthquake and you have not yet departed, you may have provision to claim for cancellation or rearrangement of your journey (whichever is the lesser)." |
| Fast Cover (Allianz) | 5 August (9:45pm) | If you purchased your Fast Cover policy after this time and date and it was underwritten by Allianz you are not covered for any losses connected to the Lombok earthquake and Fast Cover (Allianz) will not pay any related claims. |
| Fast Cover (Hollard) | 5 August (9:45pm) | If you have coverage from Fast Cover and it was underwritten by Hollard, there is no cover for the following benefits if unless your travel has been directly affected by the earthquake: Benefit 5 - Trip Cancellation Expenses; Benefit 6 - Trip Disruption Expenses; Benefit 16 - Travel Delay Expenses and Benefit 17 - Alternative Transport Expenses. If you purchased your Fast Cover policy after this time and date and it was underwritten by Hollard, your policy does not cover earthquake-related claims for trips to Lombok. |
| iTrek | 6 August | iTrek doesn't mention whether new policies cover future earthquakes. However, it has issued this statement for those who have already gotten a policy: "... If you've already gotten a policy, if your pre-booked travel arrangements are cancelled, delayed or rescheduled as a result of the Lombok earthquake and you have not yet departed, you may have provision to claim for cancellation or rearrangement of your journey (whichever is the lesser)." |
| Kango | 6 August | Kango doesn't mention whether new policies cover future earthquakes. However, it has issued this statement: "... If your pre-booked travel arrangements are cancelled, delayed or rescheduled as a result of the Lombok earthquake and you have not yet departed, you may have provision to claim for cancellation or rearrangement of your journey (whichever is the lesser)." |
| Simply Travel Insurance | 6 August | Simply Travel Insurance doesn't mention whether new policies cover future earthquakes. However, it has issued this statement: "... if your pre-booked travel arrangements are cancelled, delayed or rescheduled as a result of the Lombok earthquake and you have not yet departed, you may have provision to claim for cancellation or rearrangement of your journey (whichever is the lesser)." |
| Ski Insurance | 6 August | Ski Insurance doesn't mention whether new policies cover future earthquakes. However, it has issued this statement: "If your pre-booked travel arrangements are cancelled, delayed or rescheduled as a result of the Lombok earthquake and you have not yet departed, you may have provision to claim for cancellation or rearrangement of your journey (whichever is the lesser)." |
| Southern Cross Travel Insurance | 6 August (9am) | If you purchased your policy after this time and date, there is no longer coverage for earthquake related claims in Lombok, Indonesia. If you purchased your policy before this time and date, you're still covered. The following statement has been issued: "If your travel plans have been affected by this event, you can submit a claim for either the cost of any additional payments to alter your travel plans or for the loss of your pre-paid travel plans, such as flights, accommodation and tours." |
| Under 30s | 6 August | Under 30s doesn't mention whether new policies cover future earthquakes. However, it has issued this statement for those who have already gotten a policy: "... if your pre-booked travel arrangements are cancelled, delayed or rescheduled as a result of the Lombok earthquake and you have not yet departed, you may have provision to claim for cancellation or rearrangement of your journey (whichever is the lesser)." |
| Woolworths Travel Insurance | 5 August (9:45pm) | If you have coverage from Woolworths Travel Insurance and purchased your policy before this time and date, you're covered for the following benefits: Section 1: Overseas emergency medical assistance (all policy types); Section 2: Overseas emergency medical and hospital expenses (all policy types); Section 4: Additional expenses (Comprehensive and Annual Multi-Trip policies only), and only if directly affected by the earthquake. There is no cover for trip cancellation under any policy type. If you purchased your cover after this time and date, there is no cover for any claims arising from earthquakes in Lombok. |
| Zoom Insurance | 6 August | Zoom Insurance doesn't mention whether new policies cover future earthquakes. However, it has issued this statement for those who have already gotten a policy and are already travelling: "... If you have started your journey and your transport is delayed or cancelled or your accommodation is affected due to the Lombok earthquake there may be provision to claim for reasonable additional travel, accommodation and meal expenses." It has also issued the following for those who haven't departed yet: "... If your pre-booked travel arrangements are cancelled, delayed or rescheduled as a direct result of the earthquake and you have not yet departed, you may be able to claim for cancellation or rearrangement of your journey (whichever is the lesser)." |
Travel insurance news
Picture: Shutterstock
