Volcanic activity in Bali: What can travelers do?

Mount Agung volcano in Bali has erupted after half a century of dormancy. Authorities have raised the alert level to the maximum and have decided to close Bali's international airport for three days. Despite the reopening of airspace, further closures cannot be ruled out depending on the movement and direction of the ash cloud.

Given this situation, and with Christmas season bookings just around the corner, many travelers are wondering if they will be able to travel to Bali in the coming weeks and what steps they need to take to cancel their reservations without losing their deposits.

What should travelers keep in mind?

When, as in the case of Bali, weather conditions prevent flights from operating normally, EU and international regulations governing air passenger transport state that airlines may be exempt from liability for passenger compensation. Therefore, if airlines can justify the occurrence of a force majeure event—in this case, adverse weather conditions affecting flight operations—passengers would lose the full amount paid for their bookings.

In addition, each tourism company has its own cancellation policy, and therefore, cancellation fees will vary. These usually correspond to a percentage of the booking price, which is typically higher the closer the cancellation is to the scheduled service date.

What constitutes force majeure?

Force majeure is considered a situation beyond the traveler's control that poses a risk to travel, such as the declaration of a disaster zone at the destination or an act of piracy, among others. It applies especially when a country's authorities declare the intended destination—or a transit point, provided it is the only way to reach the destination—as a "disaster zone."

Reasons for declaring a disaster zone usually include natural disasters such as floods, earthquakes, or fires, or, in the case of Bali, a volcanic eruption.

How does travel insurance protect travelers against these force majeure events?

Currently, InterMundial offers a Force Majeure Insurance that extends protection to travelers in unpredictable situations. These specific force majeure policies guarantee that, should such a situation occur, the insurance will reimburse the traveler for expenses incurred due to the cancellation, extension, or interruption of the trip.

Thus, if before starting the trip, official authorities declare that travel to the destination is not possible, or if there is a delay in the departure of the transport exceeding 24 hours due to a force majeure event and no alternative travel options exist to reach the destination, the insurance will reimburse the traveler for cancellation expenses.

Similarly, if during the stay at the destination, a force majeure situation causes a delay in the return transport (at least until the following day) and the traveler needs to remain away from home longer than initially planned, the insurance will cover the expenses incurred for accommodation, within the limits established in the policy.

Finally, if the traveler has to interrupt their trip and return home due to a force majeure event, The insurance will reimburse return transport expenses.

Among the causes considered force majeure by these specialized insurance policies are volcanic eruptions, provided that for this cause to be accepted by the insurance, the force majeure situation must have occurred after the trip or insurance was booked.

About InterMundial Insurance

InterMundial Insurance is the leading insurance broker specializing in the tourism sector in Spain. With over 20 years of experience, it provides insurance and services to tourism companies and travelers.

www.intermundial.es