Insurers on standby for claims as volcano strands Air New Zealand passengers

Mt Lewotobi eruption disrupts flights, triggers insurance claims

Insurers on standby for claims as volcano strands Air New Zealand passengers

Insurance News

By Jonalyn Cueto

Travel insurers are bracing for a surge of claims as the Mt Lewotobi volcano eruption forces Air New Zealand flight cancellations, stranding passengers in Bali and triggering coverage disputes over policy timing and volcanic ash exclusions. Travellers will soon hear from insurance companies regarding mobilising their resources.

Travellers are facing unexpected costs following Wednesday’s cancellation of Air New Zealand flights NZ290 and NZ291 due to volcanic ash from Mt Lewotobi Laki-Laki’s eruption in eastern Indonesia, The Economic Times reported.

The airline cancelled its Auckland-Bali service and return flight after volcanic ash was forecast to affect regional airspace.

“The safety of our customers and crew is our top priority and we are closely monitoring the situation,” said Air New Zealand chief operating officer Alex Marren.

NZME head of radio news and sport Scarlett Cvitanovich reported being rebooked to fly out Saturday night, June 21 – a three-day extension from her original departure. Despite being on the same island as the volcano, she said her location was approximately 600km from the eruption site.

The significant delay highlights the scale of disruption affecting travellers, with many facing unexpected accommodation and meal costs whilst waiting for alternative flights.

Volcano reaches maximum alert level

Mt Lewotobi Laki-Laki erupted at 5:35pm local time (9:35pm NZT) on Tuesday, with Indonesia’s volcanology agency reporting the ash column reached 10,000m above the summit.

“The height of the eruption column was observed at approximately 10,000 metres above the summit. The ash column was observed to be grey with thick intensity,” the agency stated.

The alert level remains at the highest tier in Indonesia’s four-level warning system, with authorities advising residents and tourists to avoid activities within 7km of the volcano’s crater.

Evacuations and safety warnings

At least one village has been evacuated, according to National Disaster Mitigation Agency spokesperson Abdul Muhari, who also reported ashfall in several communities outside the exclusion zone and advised residents to move to safer areas due to continued tremors.

Geology agency head Muhammad Wafid warned about potential lahar flows – mud or debris floods from volcanic material – especially during heavy rain in nearby river basins. Authorities recommended face masks to guard against ash inhalation.

What are your thoughts on the impact of this volcano eruption on Kiwi insurers? Share your insights below.

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