Who pays when systems fail?
![Passenger check-in line at airport.](https://images.thewest.com.au/publication/C-15450206/c4ca9d6c4542a1caca7894f727bb71e4fbfd1348-16x9-x0y285w5472h3078.jpg?imwidth=810&impolicy=wan_v3)
As we’re sure you already know by now, a digital hiccup caused by the cybersecurity wizards at CrowdStrike sent airlines into a tailspin and passengers into a collective grumble on Friday July 19.
The global tech outage wreaked havoc on travellers with disrupted check-ins, extensive flight cancellations and widespread travel delays.
According to FlightAware.com, an online flight-tracking website, more than 5000 planes were grounded and 23,000 flights were delayed globally during the outage.
Jetstar passengers were among those hit the hardest in Australia, with the airline cancelling more than 150 flights because of the IT failure.
Natalie Ball, managing director of comparetravelinsurance.com.au, described the tech outage as “unprecedented”, noting that its impact has had a seismic effect on travellers worldwide.
![Natalie Ball.](https://images.thewest.com.au/publication/C-15450206/81807f4723bf70a3ad269bd516ca4522bf3fc663.jpg?imwidth=810&impolicy=wan_v3)
Regarding compensation for such system failures, Ms Ball says: “Compensation through travel insurance depends on the type of cover you have and whether or not you had already departed on your journey once the outage began. Cancellations caused by airlines are generally not covered by travel insurance.”
This is because travel services, such as flights, come with basic consumer rights known as consumer guarantees, which state that services must be provided within a reasonable time after a delay or cancellation.
“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 explains.
However, for travellers who had already commenced their journey, you may have provision to claim additional expenses from your travel insurer.
“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,” Ms Ball says.
Travellers affected by the recent tech outage should contact their airline for assistance in the first instance. Failing that, Ms Ball says passengers are advised to submit a travel insurance claim for consideration.
“Just be mindful that limits and exclusions apply,” she says.
What are insurers providing?
Insurers such as 1Cover, Covermore and Southern Cross Travel Insurance are currently providing coverage to travellers affected by the outage. This coverage applies only if the insurance was purchased before the event became widely known.
“While you may be eligible to claim, be aware that cut-off times would apply,” Ms Ball says.
“As news of the outage became widespread at around 4.00pm AEST on July 19, most insurers would restrict cover for policies purchased after that time.”
Those affected by the outages could claim for their travel delay expenses such as meals and accommodation, along with the cost to get to a connecting flight to a significant prepaid event on time.
“Benefits differ between insurers, but some travellers may be eligible for travel delay expenses along with additional expenses for alternative transport costs to reach a prebooked special event on time,” Ms Ball says.
“For example, if your flight was delayed for more than six hours and the only way you could get to your sister’s wedding on time was to book with an alternative airline, you may be able to claim the difference in your original fare.”
Do airlines compensate for delays?
In accordance with Australian compensation laws, airlines like Jetstar are not obligated to account for the care of delayed passengers.
![Stock image of airport departure board](https://images.thewest.com.au/publication/C-15450206/54a9b618f1a77078a272a89d6ba0aa4b55910435.jpg?imwidth=810&impolicy=wan_v3)
“Depending on the length of your delay, Australian airlines are not necessarily obligated to provide cover for meals, refreshments, accommodation or transfers,” Ms Ball says. “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.”
Tips for recouping your costs if your flight is delayed or cancelled
+ Be patient
It’s important to remember that travelling can be unpredictable. In the event your flight is delayed or cancelled, it’s better to remain calm and be patient. This will help you think more clearly and deal more effectively with the situation you’ve been dealt.
+ Stay informed
Use airline apps and websites to monitor your flight status and receive real-time updates. It’s also a good idea to follow the relevant airport and airline on social media for quick updates.
+ Document everything
Keep records of all communications with the airline, as you will need written proof from your airline to support a travel insurance claim along with advice on whether they are providing compensation. Failure to provide such evidence could have your claim denied.
+ Hold on to receipts and invoices
Without proof of your expenses, you may not be eligible to claim back your costs.
+ Keep costs to a minimum
Flashy and non-essential purchases may be denied. Avoid paying for hotel and flight upgrades unless your options are limited.
+ Submit a claim
Filing a claim online is usually the most efficient way to submit a claim, particularly with widespread events where phone lines can become overloaded. Insurers prefer to keep their emergency assistance lines open for emergency situations. Uploading all your evidence documents to your claim will ensure that your claim will be processed as quickly as possible.
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