A complainant who disputed a decision by Allianz Worldwide Partners (AWP) to reject his claim for travel losses after a housewarming event in India was cancelled has lost his bid for compensation.

The Australian Financial Complaints Authority (AFCA) ruled AWP made the right call, agreeing with the insurer that the claim fell outside the provisions of the travel insurance contract.

The complainant, a credit card holder who held complementary travel insurance underwritten by AWP, said in the claim form that his trip to India from May 29 to July 17 had been delayed because the construction of his house over there had not been finished on time.

He also produced a medical certificate from a general practitioner dated March 4 that recommended he should cancel the trip because of the coronavirus outbreak, which was later declared a pandemic on March 11 by the World Health Organisation.

The complainant was seeking $4,692 for airfares plus interest, together with compensation for delays and the rejection of his claim from AWP.

In his subsequent correspondence with AFCA in July, the complainant said he had been planning to hold a traditional housewarming ceremony on June 11 and that the occasion was a “special event” as it involves a priest performing rituals and blessings for the home.

He submitted the housewarming ceremony should be considered a “special event” even if it does not meet the AWP policy provisions. The AWP policy provides cover for cancellation of special events such as weddings, funerals and pre-paid tours but housewarming ceremonies are not on the list.

The complainant said not recognising the housewarming ceremony as a “special event” was disrespectful to his cultural and traditional values.

He also told AFCA his trip was postponed because an engagement ceremony scheduled for June 24 had been delayed.

The complainant also insisted his claim was valid as he cancelled the trip before COVID-19 was declared a pandemic.

AFCA rejected all his reasons, ruling AWP made it clear in its policy wordings what is and is not covered.

The policy provides for cancellation of listed special events that are unexpected, unforeseen and outside of one’s control. AFCA says any delay in building a house is not a listed reason for cancellation and that a housewarming ceremony, while it is special in the complainant’s culture, is not included in the policy definition.

AFCA also determined the policy has stated clearly epidemics or pandemics are not natural disaster events that fall within the scope of the contract provisions.

“Whilst the complainant may have made the decision to cancel the trip before the official declaration of the coronavirus as a pandemic, the coronavirus was a major factor in his consideration to cancel the trip,” AFCA ruled.

“This is not in itself a listed reason for cancellation and based on the exchanged material it was likely an epidemic at this time. Further, the definition of ‘natural disaster’ clearly and unambiguously excludes epidemics or pandemics.”

Click here for the ruling.