Lost luggage and flight cancellation insurance claims rise
Flight cancellations, lost or delayed luggage and the ongoing travel chaos in airports worldwide has led one of the world’s leading insurance providers, Allian, to remind people of the importance of travel insurance for the upcoming school holidays - both within Australia and overseas.
Just weeks out from September school holidays, Allianz has shared data that shows a sharp rise in travel cancellation and lost luggage claims, especially for domestic travel.
Allianz said claims relating to domestic cancellations have increased 279 per cent between April and June 2022 compared to the same period in 2019, with the spike steepest since April this year when domestic airline sales began to soar.
Domestic lost luggage claims have also seen steady growth in 2022 with claims peaking in April and May this year, including around the Easter family holiday period.
Australian airports are gearing for another busy September school holiday period, with July 2022 recording a 156 per cent increase in domestic travel sales and a 45 per cent increase in international travel sales when compared with sales in 2019.
Damien Arthur, Executive Head of Travel at Allianz Partners said Australians are becoming more aware of what can go wrong when they go on holidays with more news articles reporting pandemic-related sickness, travel interruptions and lost luggage.
“The increased awareness is also making travellers more aware of the importance of insurance as they take more time to understand their policies ahead of their holiday,” Mr Arthur said.
“COVID, and its impact on travel, has given Australian travellers a sharper awareness for what can go wrong on their holiday, and an increased appetite to understand the minute detail of their insurance policy. The new travel landscape has made travel insurance a must have – even for a domestic trip.”
Allianz Global Assistance contact centre data shows the assistance company receives a lot of ‘What If’ questions. “What if I get COVID? What if my flight is cancelled and I need extra accommodation? What if my bags are lost?”
Allianz has detailed the answers to these questions on its website and last year launched a new travel insurance product which adapted to travel with COVID-19.
The insurance also covers travellers, under selected benefits, should they contract COVID-19 while travelling provided they have not travelled against the advice of an Australian Government and have taken appropriate action to avoid contracting COVID-19.
Should COVID-19 border closures or mandatory quarantine shorten or cause a cancellation of travel plans, eligible customers may be entitled to a partial or full premium refund.
The new cover, and all travel insurance information, is accessible via allianz.com.au/travel-insuranc. Customers should refer to the Product Disclosure Statemen to see which benefits offer cover for contracting an epidemic or pandemic and the terms, conditions, limits and exclusions that apply.
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About Allianz Partners
Allianz Partners is a world leader in B2B2C insurance and assistance, offering global solutions that span international health and life, travel insurance, automotive and assistance. Customer driven, our innovative experts are redefining insurance services by delivering future-ready, high-tech high-touch products and solutions that go beyond traditional insurance. Our products are embedded seamlessly into our partners’ businesses or sold directly to customers, and are available through two commercial brands in Australia: Allianz Global Assistance and Allianz Care. Present in over 75 countries, our 19,400 employees speak 70 languages, handle over 58 million cases each year, and are motivated to go the extra mile to offer peace of mind to our customers around the world.
Travel Insurance is issued and managed by AWP Australia Pty Ltd ABN 52 097 227 177 AFS Licence No. 245631, trading as Allianz Global Assistance (AGA) as agent of the insurer Allianz Australia Insurance Limited ABN 15 000 122 850 AFS Licence No. 234708 (Allianz). Travel Insurance is underwritten by the insurer Allianz. Conditions, terms, limits and exclusions apply. We do not provide advice based on any consideration of your objectives, financial situation or needs. Before making a decision please consider the Product Disclosure Statement and Target Market Determination available at . If you purchase this insurance, AGA will receive a commission that is a percentage of the premium. Ask us for more details before we provide you with any services on this product.