Even if a flight is delayed, you may not receive an insurance payout if it does not meet the compensation requirements under the travel insurance policy.
The Financial Supervisory Service on the 12th said demand for travel insurance is increasing during the summer vacation season and provided guidance on major dispute mediation cases. In one case, a person identified as A had their return flight canceled due to a volcanic eruption, moved to a nearby airport, and used another flight, but did not receive compensation for transportation to the other airport except for the reissuance expense.
The policy only compensates for losses when a flight is delayed by at least four hours or when no alternative means is provided, and A used a flight that departed 1 hour and 30 minutes later. Travel insurance is a comprehensive policy that covers losses arising from death or permanent disability, treatment for injuries or illnesses, loss of personal effects, liability, and flight delays during domestic and international travel.
However, injuries or death caused by the insured's intent, war, or high‑risk sports, and items such as cash, dentures, prosthetic limbs, contact lenses, and glasses are excluded from coverage. Also, even if you enroll in multiple policies, there is no duplicate compensation, and compensation is provided in proportion to the loss amount limit.
Flight delay compensation riders vary by product structure. They are divided into an "index type," which pays a fixed amount in proportion to the delay time, and an "actual loss type," which compensates actual expenditure within the limit; for the actual loss type, no payout is made if there is no actual expenditure.
There has also been a case where the flight was actually delayed for five hours but the claim was denied because there was no expenditure. The scope of compensation for loss of personal effects is also limited. Losses due to the insured's carelessness or mistakes, losses arising from the exercise of public authority, and purely cosmetic damage are excluded from coverage.
Liability coverage is also limited in scope. For example, even if a rented carrier is damaged during airline checked baggage transport, liability to the original owner is not recognized, and only the personal effects coverage applied.