Overseas Travel Inconvenience Insurance: Accommodation Claims Relaxed for Typhoon-Related Delays – Retroactive from April 1 for Three Typhoons, Says Financial Supervisory Commission

Recent consecutive typhoons have hit Taiwan, causing numerous flight cancellations for travelers returning from overseas trips, forcing many to remain stranded abroad. Some policyholders, unable to provide proof of pre-paid accommodation expenses, received only a daily maximum of NT$2,000 in compensation, sparking public controversy.

On the 23rd, Chen Ching-yuan, Deputy Director of the Insurance Bureau at the Financial Supervisory Commission (FSC), announced that after coordination by the Property and Casualty Insurance Association, member companies have reached a consensus to adopt a more lenient standard for reimbursing accommodation costs incurred due to typhoon-related delays. The new approach will use the accommodation receipt from the night before the originally scheduled final day of the trip as the base amount, multiplied by 1.2 (a 20% increase), as the maximum payout. This policy will be retroactively applied to new insurance policies implemented from April 1, 2026, covering three typhoons during this period.

Chen explained that the revised personal overseas travel inconvenience insurance policy, effective April 1, 2026, was originally designed to cover scenarios where travelers change their itinerary or divert to a third location due to natural disasters. For example, if a policyholder originally planned to stay in location A but had to reroute to location B for an earlier flight due to a disaster, they could claim actual expenses incurred in location B, up to the amount of the originally scheduled daily accommodation cost plus 20%, provided they could not obtain a refund.

However, recent typhoons have primarily caused delays during the final leg of return journeys. Since travelers had no opportunity to pre-book accommodation for unplanned extended stays, strictly requiring proof of pre-paid expenses—and limiting compensation to NT$2,000 per day otherwise—was inconsistent with the original intent of insurance protection and led to widespread disputes.

Under Article 54, Paragraph 2 of the Insurance Act, ambiguous contract terms must be interpreted in favor of the insured. Based on this principle, the Property and Casualty Insurance Association has coordinated across companies to adopt a more flexible claims standard.

The new claims criteria are as follows:

- If a receipt for the final night’s accommodation is available: The amount on the receipt will serve as the base, multiplied by 1.2 (20% increase), with actual expenses reimbursed up to this limit. - If no receipt for the final night is available or no pre-payment was made: Each insurer will assess the case individually based on factual circumstances. - If no accommodation fees were pre-paid at all (e.g., staying with relatives): The current rule remains, with a maximum daily payout of NT$2,000 per person.

All cases occurring on or after April 1, 2026, are eligible for retroactive application. Policyholders can file claims with their insurers by submitting relevant documentation.

Regarding transportation expenses, Chen clarified that the primary impact of delays is on accommodation. Unless travelers incur additional costs from rebooking flights after refunds, the current dispute has mainly centered on accommodation claims. The association has already begun reviewing related policy terms to develop insurance products that better meet consumer needs in the future.