Boeing 737 Max 8 & Travel Insurance

Travel Insurance & the Impact of the Latest Boeing 737 Crash

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Updated March 14, 2019

Following the recent Ethiopian Airlines crash, there has been a lot of unease and discussion amongst travelers about what this means for their upcoming flights. In a memo issued on Monday, March 11, the Federal Aviation Administration has reaffirmed that the Boeing 737 Max 8, the aircraft involved in the recent accidents, continues to be airworthy. The FAA at the time said that the investigation into the Ethiopian accident has just begun and there is not enough data to draw any conclusions yet.

The FAA released an updated statement on March 13th announcing the temporary grounding of the Boeing 737 Max aircraft. The decision was made after reviewing new evidence from the crash site and the grounding will remain in effect while they examine data recovered from the flight recorders.

What are Your Options If You Have Travel Insurance?

Many travelers have questions about their safety. At InsureMyTrip, we are actively monitoring the conversation and our goal is to provide travelers with the information they need to make an informed decision regarding their travel safety. Several international regulators have banned the 737 Max 8 from their airspace due to safety concerns, causing delays and cancellations. Travelers who purchased traditional travel insurance may receive reimbursement of pre-paid, non-refundable trip costs if they have trip delay or missed connection benefits. Here are a few examples:

If Your Flight is Grounded:

If you have a flight booked and your airline has grounded it’s Boeing 737 Max 8 – you may be eligible for compensation. Compensation does depend on the airline and their home-country regulations, so we would strongly encourage you to contact your airline if you have specific questions. If you do have travel insurance, contact your provider to ask whether your policy will provide coverage.

If Confirmed Mechanical Issues Delay Your Flight:

If your flight is delayed due to a confirmed mechanical issue and you do have travel insurance, file a claim with your travel insurance company. In some cases, depending on your policy, you may be refunded if you must cancel your trip due to a lengthy delay. Typically, 50% of your insured trips length must be lost due to delays in order for this to be a covered reason to cancel your trip.

If You Choose to Cancel a Flight Scheduled on a Boeing Plane:

As you are making the decision to choose not to fly, you will likely not be eligible for a refund from your airline. Traditional travel insurance does not provide coverage for fear, but there are some time-sensitive coverage options travelers may have access to. Cancel for Any Reason (CFAR) is an optional, time-sensitive benefit of travel insurance coverage which offers the opportunity to cancel travel plans for reasons other than those listed as “covered reasons” on a policy. Typically, a policy must be purchased within 10-21 days of making the initial trip payment to be eligible for CFAR benefits.

If you have purchased a policy through InsureMyTrip and are concerned about your travel plans, contact our customer care center 1-800-847-4722 for guidance.

We will be updating this article with more information as it becomes available.

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