TORONTO — Manulife has announced that ongoing jet fuel shortages that are currently disrupting air travel are now considered a “known event” with respect to its Trip Cancellation and Interruption Insurance coverage.
In an email sent to travel advisors earlier this week, the insurer said the new update came into effect May 5, 2026, and issued the following guidance:
- When travel is disrupted due to flight cancellations resulting from fuel shortages
If a travel supplier cancels or modifies flights due to fuel shortages, the travel supplier is responsible for offering refunds, rebooking options or travel credits. Because airlines are obligated to address these changes directly, such cancellations are generally not covered under Manulife Travel Insurance. However, depending on the insured’s specific circumstances and policy terms, certain benefits such as misconnection or travel disruption benefits may still apply.
- When an insured’s flight is cancelled or interrupted
- Policy purchased before May 5, 2026: Misconnection or disruption benefits may apply (see policy for complete details).
- Policy purchased on or after May 5, 2026: Benefits related to this current situation would not apply, as it is now considered a known event.
- When travel disruptions occur after an insured has already departed
- Policy purchased before May 5, 2026: If the current situation causes a delay or disruption to an insured’s return home, the insured may be covered under their policy’s misconnection or disruption benefits.
- Policy purchased on or after May 5, 2026: Benefits would not apply due to the current situation being a known event.
Manulife also noted that the Premium Protection Plans and Concierge Club Plans (Transat) are designed to help cover any event that is unforeseen at the time the policy was purchased. Coverage is available subject to the policy terms and conditions.
It also noted that Manulife coverage is secondary to other sources of compensation, including remedies offered by the travel supplier and applicable credit card refunds.
