A man who missed his flight because of a knife in his luggage does not have a valid claim under his travel policy for the extra costs incurred, the financial ombudsman has ruled. 

The traveller missed his flight back to Australia after being held for eight hours by government authorities at one of his destinations. 

He was travelling by train to the airport when there was a security inspection. The authorities found a souvenir kitchen knife in his luggage, which he had bought overseas, and he was detained and later released without charge. 

NIB Travel Services refused his claim for additional travel costs including replacement flights, accommodation and train fares.

His NIB travel policy had 11 listed events under its “cancellation and additional expenses” section, but being detained by local authorities was not captured by any of them, the Australian Financial Complaints Authority has ruled. 

The travel delay section only provided cover when scheduled public transport, in this case the flight home, was delayed for at least six hours, but it was the detention that led to the flight being missed. 

The man pointed out that he purchased comprehensive cover, but this did not sway AFCA.

"I accept he purchased the highest level of cover available," the ombudsman said.

"However, insurance policies do not provide cover for all circumstances, and the insurer is entitled to assess and limit the risks it covers. 

"I am satisfied the insurer is entitled to decline the claim as an event covered by the policy has not been established."

Read the ruling here.