What is happening
On 28 February 2026 (Event), the United States and Israel launched coordinated military strikes inside Iran. Iran launched a retaliatory wave of ballistic missiles and drones targeting UAE, Bahrain, Qatar, Kuwait, Saudi Arabia and Jordan.
Airspace across much of the Middle East has been closed. Major transit hubs including Dubai International, Hamad International (Doha) and Abu Dhabi International are either shut down or operating under severe restrictions. Around 3,000 flights have been cancelled since the conflict began, and airlines including Emirates, Qatar Airways and Etihad have suspended or rerouted services.
It is likely the conflict could last weeks or may escalate. The situation remains highly volatile and unpredictable.
Australian Government – Do Not Travel Advisory 01 March 2026 (Level 4) – UAE (including Dubai and Abu Dhabi), Israel, Bahrain, Kuwait, Qatar, Iran, Iraq, Syria, Lebanon and Yemen. Jordan remains at Level 3 (‘Reconsider your need to travel’). https://www.smartraveller.gov.au/
Impact to Travel Insurance
Check with your insurance adviser, if you are:
- Currently travelling, before you change flights, accommodation or make alternative travel arrangements,
- Planning to travel check before making or changing any flight bookings.
How this affects travel insurance
All insurance policies EXCLUDE or have limited cover for War & military actions (including State Cyber attacks). Travel to countries or regions where there is a DFAT travel advisory, including transit is not covered after 28 Feb 2026 (Event date).
Only people currently in transit may be covered for Loss of Deposits, Cancellation, Curtailment or Personal Safety Evacuation, there will be conditions, like a 7-day limit to leave the area.
Question: Can I cancel my booking?
Answer: If you choose to cancel to your trip voluntarily, there may be not cover under your insurance policy, talk to your insurance adviser before making any changes or cancelling any trip.
Question: I’m currently travelling and have been advised of cancellation or delay, can I book a different flight, change accommodation or incur extra expenses?
Answer: No, not without lodging a claim on your insurance first and getting the insurer to authorise. If it’s urgent, call the emergency number on your Travel insurance.
Question: Which policy sections or benefits are impacted?
Answer: Loss of Deposits, Cancellation, Additional Costs, Curtailment and Personal Safety Evacuation benefits will not be available for travel to or from or transit through countries listed as Level 4 – Do Not Travel by DFAT, unless you are currently travelling. Talk to your insurer or insurance adviser first before making any changes or incurring additional costs.
More information
Travel commenced or new policies purchased or endorsed/ changed on or after the 28 Feb 2026 (Event) will likely not provide any cover. Some airlines are offering refunds or suspending flights. We recommend that you should not cancel or change any flight bookings before talking to the airline or accommodation provider etc, as making voluntary changes may not be covered by your insurance. Talk to your insurer or insurance adviser first before making any changes or incurring additional costs
War and conflict exclusions
The Insurance Council of Australia has confirmed that most travel insurance policies exclude cover for losses arising from war or armed conflict. This is a standard exclusion across the Australian market. It means that claims directly connected to military action, acts of war, political unrest or government-ordered airspace closures are typically not covered.
In practice, this means that for travel to any country or region subject to a DFAT travel advisory, cover will generally not be available for trips commencing, or policies purchased or endorsed, on or after 28 February 2026. Several insurers and assistance providers have now formally classified the situation as a ‘known event’, which means policies taken out after specified cut-off dates will not cover claims arising from this conflict.
Who may still have some cover
There is a narrow window of cover for people who are currently in transit and who purchased their policy before 28 February 2026. These travellers may be covered for loss of deposits, cancellation, curtailment or personal safety evacuation. However, conditions are likely to apply, including a requirement to leave the affected area within seven days.
Some policies may also cover limited cancellation costs if DFAT upgraded its advice to ‘Do Not Travel’ after the trip was booked and the policy purchased. Each policy needs to be assessed on its own terms. Cover may also be voided entirely if travellers proceed against official government warnings.
Check your travel insurance
Now is the time to check your travel insurance policy carefully, talk with your insurance adviser about your plans or cover.
Do not cancel bookings prematurely
This is important. If your business has upcoming travel bookings to affected regions, do not cancel them before speaking to the airline or travel provider. Cancelling a booking yourself, rather than waiting for the airline to cancel or offer a refund, may mean the cost is not claimable under your insurance. Several airlines are currently offering fee-free refunds, credits or rebooking options for affected routes.
Airline responses
Major carriers serving Australia are responding differently. Qantas has reported no impact to its own operated flights so far, including Singapore to London services, but is offering fee-free refunds, credits and date changes for tickets issued on or before 1 March 2026 for travel on partner airlines to, from or via the UAE, Qatar, Israel, Jordan and Oman. Etihad is allowing free rebooking for tickets issued on or before 28 February 2026 and full refunds for flights through to 3 March 2026, though schedules may change at short notice. Emirates and Qatar Airways have suspended or significantly reduced operations.
Key takeaways
| 1. Most travel insurance policies will not cover claims arising from this conflict due to standard war exclusions. 2. Policies purchased or trips commencing on or after 28 February 2026 are unlikely to provide any cover for travel to affected regions. 3. Travellers currently in transit may have limited cover, but conditions apply, including leaving the area within seven days. 4. Do not cancel airline bookings yourself. Wait for the airline to cancel or offer alternatives to preserve your claim position. 5. Speak to your insurance broker now to understand your specific policy terms and any available cover. 6. Review your corporate travel risk framework and duty of care obligations as a matter of urgency. |
Disclaimer: This article is for general information purposes only and does not constitute financial, legal or insurance advice. Coverage will depend on the specific terms and conditions of individual policies. Businesses should consult their insurance broker or legal adviser for guidance on their particular circumstances. Information is current as at 3 March 2026 and the situation is evolving rapidly.
This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L, www.insuranceadviser.net