Travel insurer PassportCard has covered all costs to repatriate customers stranded in the Middle East conflict zone – despite war exclusions in its policies.

Customers in Israel were taken to Jordan via coach and then flown to Athens, Greece, while customers from Dubai have been bussed to Muscat, Oman, and then repatriated to Melbourne via Delhi.

CEO Peter Klemt told insuranceNEWS.com.au today the business had about 200 customers in the region and contacted them all.

“We wanted to act for the sake of our customers and offer them the opportunity to get out of harm’s way if they wanted to,” he said.

“All of those costs were covered by us. The total went into six figures, and I guess you’d call it an ex-gratia payment.

“We have a track record of doing this, around the world, and we just believe it’s the right thing to do to get our customers out of trouble and to a safer place, and on this occasion, out of a war zone.”

Mr Klemt says most PassportCard customers are outside the conflict area and it won’t be paying for them to return home if they are affected by airspace closures, rerouting or delayed flights.

“That is over to them. We help them as much as we can, and thankfully just about every airline that is involved is doing what they can to assist customers to reorganise themselves and get home, or get to the next destination. The industry is responding as best as it can.”

The Insurance Council of Australia has declared the situation a significant event, prioritising customer support, but has stressed that travel policies usually exclude war and conflict.

Foreign Affairs Minister Penny Wong last week called on travel insurers to “do the right thing”.

“Australians are looking to their insurance providers for certainty in uncertain times,” she said. “I’m pleased that the Assistant Treasurer has been working closely with insurance providers through this crisis, and we welcome the Insurance Council of Australia … declaring the conflict in the Middle East a significant event. 

“The government will continue to press Australia’s insurers to do the right thing by Australians who are facing disruption.”

PassportCard sells travel cover primarily through brokers, and is backed by underwriter Guild Insurance.