The cruise, initially booked for the previous October, was cancelled due to "ongoing unrest." While the holidaymaker received a credit voucher for the cruise, he had already altered his plans and incurred extra expenses. Southern Cross outlined that their policy excludes coverage for disruptions caused by conflicts, such as "acts of foreseeable violence" and "military operations."
The insurer elaborated that the cruise company's reference to regional unrest was tied to Middle Eastern hostilities, namely Israeli military actions in Gaza and Houthi movements targeting ships. The policyholder was forewarned of the non-coverage should regional hostilities impact the cruise itinerary.
Challenging the insurer's position, the claimant approached the Australian Financial Complaints Authority (AFCA), arguing that the term "unrest" should not fit the war and violence exclusion, stating that cruise vessels were not explicitly targeted. He noted that any violent incidents were mainly concerning cargo ships, suggesting no direct threat to passenger cruises.
AFCA's investigation clarified the circumstances, highlighting that, at the time of cancellation, American naval forces were actively escorting commercial ships in the area, engaging in combat with Houthi forces on occasion. The authority remarked that numerous shipping operators were side-stepping the region due to these threats, which are linked to hostilities involving the Houthis and Israel's warfare in Gaza.
An AFCA ombudsman aligned with the insurer's stance concluded that the regional situation exceeded mere unrest. The presence of US Navy activities was deemed indicative of military operations or foreseeable violence. Continuous Houthi aggressions were classified under foreseeable violence, justifying the insurer's denial of the claim.
Published:Friday, 20th Jun 2025
Source: Paige Estritori
![]() | ClearView Names New Underwriting Head Amidst Strategic Changes 30 Jun 2025: Paige Estritori ASX-listed life insurer ClearView has announced the appointment of Peter Tilocca as Head of Underwriting, coinciding with key updates to its underwriting standards and definitions. Tilocca's extensive two-decade career in Australian underwriting includes leadership roles at Zurich, Noble Oak, One Path Life, and RGA Australia. His new role with ClearView commenced on 30 June. - read more |
![]() | Ombudsman Supports Theft Claimant in Home Business Coverage Dispute 30 Jun 2025: Paige Estritori A recent case has seen a policyholder triumph over her insurer after the Australian Financial Complaints Authority (AFCA) ruled in her favour following a contentious dispute regarding home business operations. The controversy arose when the woman's theft claim was denied by her insurance provider, IAG, over allegations of fraudulent misrepresentation about the use of her rental property. - read more |
![]() | AFCA Upholds Insurance Fraud Ruling Over Disputed Possum Accident 26 Jun 2025: Paige Estritori A motorist's claim that he crashed into a tree to avoid a possum has been denied by the Australian Financial Complaints Authority (AFCA), which supported the insurer's fraud decision. The incident involved the driver crashing his Jeep—insured for over $20,000—on a dimly-lit street, purportedly avoiding the rain-soaked motorway en route to the store. - read more |
![]() | Code Watchdog Criticises Insurer for Misleading Rejection Letters 24 Jun 2025: Paige Estritori The Life Code Compliance Committee has recently reprimanded a life insurance provider for issuing misleading rejection letters to policy applicants. These letters were deemed 'ambiguous and contradictory' and failed to clearly inform applicants of their review options after being denied coverage. - read more |
![]() | Income Insurance Calculators: A User-Friendly Tool for Adequate Coverage Income insurance, also known as income protection insurance, is a type of policy designed to provide support in the event that you are unable to work due to illness or injury. In today's uncertain economic climate, securing your income is more critical than ever. It acts as a financial safety net, ensuring that you can continue to meet your living expenses without depleting your savings or facing severe financial hardship. - read more
|
![]() | Navigating Pre-existing Conditions in Income Protection Insurance Income protection insurance is a safety net that many Australians rely on to secure their financial future in the event of illness or injury preventing them from working. It's a type of policy that provides a replacement income if you are unable to earn your regular income due to a health-related absence from the workplace. - read more
|
![]() | Why Every Tradie Needs Tailored Insurance: Protecting Your Livelihood In Australia, tradies are the backbone of many local communities, providing essential services in fields such as construction, plumbing, electrical work, and more. These skilled professionals often operate their own businesses or work as contractors, making financial stability paramount. - read more
|
![]() | Illness and Your Finances: Strategies for Continuous Income Flow When illness strikes, the impact on your finances can be as significant as on your health. Maintaining continuous income flow during such times is crucial for financial stability. - read more
|