A traveller caught out by Victorian border closures has lost a dispute lodged with the Australian Financial Complaints Authority (AFCA) over a claim for expenses incurred after isolating in a Queensland hotel.

The complainant, who held a corporate travel insurance policy with AIG, bought a return flight from Melbourne to Ballina NSW, departing on December 29 2020 and returning on January 4.

The Victorian government closed the border with NSW on January 1 and the man decided to fly to Queensland and work from there to avoid 14 days of hotel quarantine in Melbourne.

The insurer declined the claim for accommodation, travel, meals and miscellaneous expenses while in Queensland, saying it was not unforeseen that borders within Australia would shut with minimal warning and there had been multiple Victorian press releases advising of NSW outbreaks and re-entry restrictions.

The policyholder argued that the border was open and no travel restrictions were in place on December 29 and he was not able to arrange a flight out of Ballina to return home before the border closed.

He believed his only option was to travel to Queensland and isolate until the quarantine period had ended, and avoid hotel quarantine in Melbourne, and he worked from a hotel room there rather than from his office in Victoria.

AFCA agreed with the insurer that border closures were occurring regularly and on balance the circumstances leading to the complainant incurring additional costs could be foreseen.

Victoria introduced a permit system on December 18 for anyone entering from NSW and people who had been to the Northern Beaches and other hotspots were not allowed entry without going into 14 days hotel quarantine.

“Given the spread of COVID-19 in the community and rapidly changing circumstances, it was entirely possible a hotel quarantine requirement would be put in place for returning travellers from other areas of NSW,” it says.

The policy also required that costs were outside the complainant’s control.

“The complainant was still able to travel home to Melbourne on his original date but chose not to due to the hotel quarantine requirement,” the AFCA adjudicator says. “I therefore do not consider the costs incurred in Queensland were outside his control.”

The decision is available here.