On 10 May 2024 the Vanuatu’s government confirmed Air Vanuatu had been placed into voluntary liquidation.
“In principle” advice regarding likely policy response to claims for Insolvency of Travel Service Provider is provided below.
For Single Trip policies purchased prior to 08:00 NZST on 10 May 2024 and trips booked under Annual Multi Trip policies prior 08:00 NZST on 10 May 2024.
Disruption experienced post-departure.
Claims for Insolvency of Travel Service Provider are considered under Section 13.
To claim under Section 13, your policy must include the Disruption module.
Subject to relevant terms and conditions, Section 13 will compensate the Insured Person for the (i) irrecoverable cost of travel, accommodation, car hire and excursions paid or contracted to be paid by You to organisations unrelated to the failed Travel Service Provider in respect of the Trip; or (ii) the Reasonable cost of alternative arrangements for You to reach Your destination.
All individuals with insurance coverage are expected to behave as if they were uninsured, taking the most cost-effective measures to mitigate their losses. As a first step, we recommend that they communicate with airlines and related travel services to rearrange travel plans or secure refunds as necessary.
In the event that you cannot return home as scheduled, your policy will provide a 21-day automatic extension. This means that if you cannot return home due to circumstances outside your control, your policy will remain in place for up to a further 21 days without payment of additional premium. You don’t need to contact us to request a policy extension – this is an automatic provision.
Disruption experienced pre-departure.
If you have not yet departed on the trip and your outbound flight arrangements are cancelled due to the Insolvency of Travel Service Provider there is provision within the policy under Section 13 for (i) irrecoverable cost of travel, accommodation, car hire and excursions paid or contracted to be paid by You to organisations unrelated to the failed Travel Service Provider in respect of the Trip; or (ii) the Reasonable cost of alternative arrangements for You to reach Your destination.
For Single Trip and Multi Trip policies purchased on or after 08:01 NZST on 10 May 2024.
Insurance serves to provide cover for sudden and unforeseen risks. It is not possible to insure against known risks and the policy specifically excludes claims resulting from circumstances known at the time of policy purchase or trip booking and which could reasonably be expected to give rise to a claim.
Whilst this advice details a preliminary assessment of potential policy response, it is anticipated that no cover will be afforded for any claim arising from the Air Vanuatu flight cancellations for policies purchased on or after 08:01 NZST on 10 May 2024, or trips booked under an Annual Multi Trip policy on or after 08:01 NZST on 10 May 2024.
GENERAL NOTE:
Please remember that no two claims are the same and accordingly, claims are assessed on a case-by-case basis. This advice is of a general nature. Claims are assessed on their individual merits and are subject to the terms and conditions of the Policy Wording which was in force at the time of policy purchase.
Whilst we recommend policyholders keep up to date with airlines, travel agents, tour operators etc, our claims team is available to advise and assist you. Please contact us if you require assistance.