Were you affected by the worldwide computer CrowdStrike crash last week?
Millions of computer systems worldwide ground to a halt as a Microsoft security upgrade went massively wrong.
Perhaps the most visible sign of the breakdown was travel, as booking and check-in systems crashed and flights were cancelled or delayed.
The blame was placed on CrowdStrike, a company that provides software, including security software, to various industries. A CrowdStrike update affected computers running Windows programs, which led to a domino effect around the world.
Flight tracking service FlightAware.com reported more than 5000 planes were grounded, and 23,000 flights were delayed globally on Friday.
As anyone who has had their flights cancelled or delayed knows – and unfortunately too many Australians do – it can create frustration, emotional distress and often considerable financial damage.
Does your insurance cover it?
For the frustration and distress, you are generally on your own, but for the financial damage, does your travel insurance cover it?
Well, unfortunately for those who were hoping for a bit of financial relief, the answer is only a ‘maybe’.
Comparetravelinsurance.com.au managing director Natalie Ball told Insurance Business that compensation through travel insurance depends on the type of cover and whether the policyholder had already departed on their journey when the outage began.
“When your flight is cancelled or delayed due to airline mechanical, technical or operational outages, it is their responsibility to compensate you, either by booking you on another scheduled service or by offering you a refund,” Ms Ball said.
For travellers already en route, there may be provisions to claim additional expenses from travel insurers.
“Due to the extraordinary nature and extended period of this event, affected travellers may be able to seek reimbursement for additional expenses incurred provided they’re not already being compensated by the airline,” she said.
Your first step should be contacting your airline, and if you do not qualify for a refund or compensation under their rules, it’s time to contact your insurer.
“Depending on the length of your delay, Australian airlines are not necessarily obligated to provide cover for meals, refreshments, accommodation or transfers,” Ms Ball said.
“This is where travel insurance benefits may kick in. A comprehensive policy will usually provide cover for travel delay expenses once you are delayed for six hours or more. Just be wary that this benefit usually only applies to higher-priced, comprehensive policies.”
So, if the possibility of flight cancellations or delays worries you, it’s worth considering paying for more detailed insurance – don’t just go for the cheapest offer. And, as always with insurance policies, check the fine print.
No consistent consumer law
Usually, general insurance policies do not cover cancellations, with consumer law covering refunds and the provision of service within a reasonable timeframe.
However, while there are a series of compensations in Australian airlines, such as a meal voucher after a three-hour delay or a hotel room if you are not in your home city, unlike the EU and Canadian compensation schemes, Australia has no consistent, clear consumer laws which apply to all airlines.
If you are considering making a claim, there are a few steps you should take.
First, you should immediately start keeping all receipts and invoices – you will need them to back your claim.
You should also minimise all costs. Insurance companies don’t take kindly to you booking the penthouse suite of a five-star hotel if your flight has been cancelled. Once again, read the fine print; often policies will use the word ‘reasonable’ a lot and this is why – so clients don’t think it’s a chance for some giant free-for-all.
It’s also a good idea to get written proof of any cancellations or delays. You may have to contact the airline to do so, and it’s best to use email for a chain of evidence.
Do you think airlines should be required to offer compensation for cancellations and delays? Why not share your opinion in the comments section below?
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