Farm Insurance :: News

Share this news item!

Insurance Claim Rejected After Flight Crew Timing Violation

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

A traveler who faced a canceled flight due to the flight crew reaching their legal working hour limits will only receive partial reimbursement for his expenses.

This ruling came from an official complaints authority.

The frustrated passenger incurred additional costs when his flight from Palermo to London was unexpectedly stopped because the crew had worked the maximum hours allowed by law. He expected full coverage for these expenses under his travel insurance policy.

However, Lloyd’s Australia, the insurer, denied the claim, stating that the travel policy’s clause on additional expenses and disruption coverage only applies to events such as strikes, riots, hijacks, civil unrest, adverse weather conditions, or accidents involving the mode of transport.

The claimant argued otherwise, insisting that the crew reaching its working hours limit was akin to industrial action such as strikes, implying that the insurer had a too narrow interpretation of the policy's disruption cover. He stated that the restriction on working hours is a precaution to prevent accidents, which aligns with the "spirit of the policy".

Yet, The Australian Financial Complaints Authority (AFCA) did not accept this reasoning.

AFCA pointed out the scant information provided by the claimant which linked the flight cancellation directly to crew working hours being exceeded. They reinforced that this situation is distinct from a strike.

“A strike constitutes a deliberate refusal to work, whereas regulatory limits on work hours are a constraint and not a chosen action,” noted the AFCA's ombudsman. “Additionally, equating flight crew timing regulations with an accident scenario is not fitting, since the clause in question applies to actual incidents happening, not cancellations meant to forestall potential accidents.”

However, AFCA acknowledged a part of the travel policy which offers coverage for scenarios where a flight is delayed over six hours due to uncontrollable circumstances.

Under this provision, the insurer is required to compensate the complainant with the policy’s cap of $2000.

“Although the insurer claims that these circumstances are specifically excluded by the policy, they failed to indicate which exclusion they are relying on and provide justification for triggering it. Therefore, it is unconvincing that the insurer has adequately clarified its entitlement to decline or reduce the claim under this section,” AFCA concluded.

This case was originally reported by Insurance News Australia.

Published:Monday, 9th Sep 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Rising Input Costs Squeeze Margins for Australian Dairy Farmers

09 May 2026: Paige Estritori

Australian dairy producers are entering the 2026/27 season with limited margin for error, as escalating input costs continue to erode profitability. According to Rabobank's latest annual Australian Dairy Outlook, rising expenses for fuel, fertiliser, water, labour, and interest rates are placing significant pressure on the sector. - read more

Federal Government Introduces $10 Billion Package to Secure Fuel and Fertiliser Supplies

09 May 2026: Paige Estritori

In response to escalating global disruptions affecting fuel and fertiliser supplies, the Australian government has announced a $10 billion budget package aimed at securing these critical inputs for the agricultural sector. Prime Minister Anthony Albanese emphasized the government's commitment to stabilizing supply lines and mitigating the impact of international conflicts on domestic agriculture. - read more

Queensland Farmers' Market Threatened with Eviction Over Insurance Dispute

01 May 2026: Paige Estritori

In south-east Queensland, the Three Creeks Farm Stall, a cherished farmers' market operating in Eileen Hose Park near Gympie, is confronting potential eviction due to a disagreement over public liability insurance requirements imposed by the Gympie Regional Council. - read more

Record Surge in Insurance Complaints Due to Claim Processing Delays

01 May 2026: Paige Estritori

Recent data from the Australian Financial Complaints Authority (AFCA) reveals a significant increase in complaints against insurance companies, with an average of 100 complaints per day. This surge is primarily attributed to delays in processing everyday claims, affecting both home-building and motor vehicle insurance sectors. - read more

Climate Change Contributing to Rising Home Insurance Premiums in Australia

01 May 2026: Paige Estritori

Insurance Australia Group (IAG) has released a report indicating that climate change is increasingly influencing the rise in home insurance premiums across Australia. The report highlights that the frequency and severity of extreme weather events, such as severe storms and hailstorms, are escalating, particularly in densely populated regions. - read more

Queensland Farmers' Market Threatened with Eviction Over Insurance Dispute

23 Apr 2026: Paige Estritori

In a developing situation in south-east Queensland, the Three Creeks Farm Stall, a popular farmers' market operating in Eileen Hose Park near Gympie, is facing potential eviction due to a dispute over public liability insurance requirements imposed by the Gympie Regional Council. - read more

Click for more Insurance News

Farm Insurance Articles

The Impact of Weather on Farm Insurance Rates: What You Should Know

Farming in Australia is a dynamic venture that requires careful planning and management. One of the crucial aspects every Australian farmer should consider is farm insurance. It provides a safety net against potential financial losses arising from various risks. These include natural disasters, damage to crops, livestock issues, and accidents on the farm property. - read more

Income Protection for Farmers: Ensuring Stability Through Tough Times

The world of farming is one filled with uncertainties. Weather conditions, market prices, and various other factors can create a highly volatile income stream for those within the agricultural sector. This unpredictability can lead to financial instability that impacts not only the farmers themselves but also their families and the larger rural community. - read more

Preparing for the Worst: Developing a Comprehensive Disaster Response Plan for Your Farm

As a farmer, you know that unexpected events can have a significant impact on your farm and your livelihood. Natural disasters, such as floods, fires, droughts, and storms, can occur at any time and have devastating consequences. That's why it's crucial to have a comprehensive disaster response plan in place to protect your property, assets, and, most importantly, your loved ones and livestock. - read more

The importance of income protection insurance for hobby farmers

As a hobby farmer, you may not rely on your farm for your main source of income. Perhaps you have a full-time job but enjoy farming as a way to supplement your income and pursue a passion. However, just because farming is a hobby does not mean there aren't risks involved. In fact, hobby farmers face many of the same risks as commercial farmers, such as injury, illness, loss of crops or livestock, and damage to property. - read more

Is Your Farm Under-Insured? Tips for Assessing Bushfire Insurance Adequacy

The threat of bushfires looms large over the vast expanses of rural Australia, shaping the reality of farming in this sunbaked landscape. The risk, always present, escalates as the climate warms and dry conditions persist. It's not a matter of if, but when the land will be tested by fire's wrath. In this environment, the armor of insurance isn't just recommended; it's critical for survival. - read more

Essential Coverage vs. Optional Add-ons: Balancing Protection and Costs

For Australian farmers, having the right insurance coverage isn't just a safety net—it's an integral part of sustaining their livelihood. Natural disasters, unpredictable climate conditions, and the inherent risks of agricultural production underline the critical importance of robust insurance for the agricultural community. As farmers navigate the complexities of insurance, understanding the basics becomes the first step toward securing their assets and ensuring the continuity of their operations. - read more

Need a Quote?

Start your free farm insurance quote comparison here.

Knowledgebase

Endorsement:
An amendment or addition to an existing insurance policy that changes the terms or scope of the original policy.

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.