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The travel website Zuji, under HNA Group, has recently been reported to have delayed refunds for cancelled flight tickets. According to a report by *Apple Daily*, Ms. Chung, a victim of this issue, purchased Cathay flight tickets to Japan through Zuji. However, the flights were cancelled due to Typhoon Jebi striking Japan, and Cathay subsequently announced refunds. Although the airline has issued the refund, Ms. Chung has yet to receive the amount from Zuji. More concerning is that Zuji did not apply for a renewal of its travel agent licence with the Travel Industry Council after it expired, leaving its future uncertain and Ms. Chung’s ticket refund potentially at risk! (See Note 1) This incident raises concerns about whether the current mechanisms protecting travellers are sufficient, and whether the “Trip Cancellation” coverage in travel insurance can assist consumers in similar situations.

Travel Industry Compensation Fund Unable to Provide Compensation

Currently, the Travel Industry Council operates the “Travel Industry Compensation Fund”. If travellers pay a stamp levy equivalent to 0.15% of their outbound travel expenses, they can receive up to 90% compensation for losses if a travel agency collapses. However, to be eligible for this protection, the travel agency must have gone bankrupt, and the traveller must have purchased at least two of the following from the agency: “transportation”, “accommodation”, or “activities”. In this case, Zuji has not yet collapsed, and Ms. Chung only purchased “transportation”, so the Travel Industry Compensation Fund does not apply.

Does Travel Insurance Cover “Trip Cancellation” Due to Typhoons?

Readers may wonder whether travel insurance’s “Trip Cancellation” coverage can be of help when flights are cancelled due to adverse weather conditions like Typhoon Jebi, preventing travellers from departing.

Generally speaking, travel insurance only covers losses from trip cancellations under specific circumstances: such as the death, serious injury, or severe illness of the insured, immediate family members, or travel companions; or incidents like fire or theft at the insured’s home. Natural disasters or adverse weather at the destination are not covered by all products. Whether or not natural disasters are included, a prerequisite for a successful claim is that the expenses paid must be “irrecoverable” and “unclaimable from other sources”. Since Cathay has already refunded the amount in this case, even if Ms. Chung had purchased travel insurance covering trip cancellations due to natural disasters or adverse weather, she would not receive compensation from the insurer.

Does Travel Insurance Cover Losses Due to a Travel Agency’s Failure to Operate Under a Licence?

We found that a small number of travel insurance policies cover a travel agency’s “bankruptcy”, but bankruptcy is not equivalent to liquidation, collapse, failure to renew a licence, or inability to operate. “Bankruptcy” is a specific legal status, and when a travel agency is unable to operate normally but has not declared bankruptcy, consumers still cannot receive compensation from travel insurance.

Below is the coverage for such situations under various travel insurance products in the market:

Reason for Trip Cancellation	AXA 「卓越」優遊樂旅遊保險	蘇黎世保險「樂優遊+」	大新保險「智優遊」旅遊保障計劃	豐隆單次旅遊保險	AIG 「旅遊智易保」（單次）	泰加旅遊保險	中銀香港環宇智選旅遊保障計劃
Unforeseen Natural Disaster or Adverse Weather at Destination	✓	✓	Excludes Adverse Weather	Compensation only if original transport is delayed by 24 hours	✗	Excludes Trip Cancellation, Only Covers Trip Interruption	✗
Unforeseen Riot/Terrorist Activity at Destination	✓	✓	✓	Excludes Terrorist Activity, Compensation only if original transport is delayed by 24 hours	✓	Excludes Terrorist Activity, Restricted to Run/Fly Plans	✗
Bankruptcy of Travel Agency under Hong Kong Travel Industry Council	✓	✗	✓ Also Covers Liquidation	✗	✗	✗	✓
Water/Fire Damage or Theft at Insured’s Residence	✓	✓	✓	✓	Excludes Theft	Restricted to Run/Fly Plans Excludes Theft	Excludes Theft
Death, Serious Injury, or Severe Illness of Insured, Immediate Family, or Travel Companion	✓	✓	✓	✓	✓	Restricted to Run/Fly Plans	Excludes Travel Companion
Issuance of Red/Black Outbound Travel Alert	✓	✓	✓	Black Only	✗	✗	Black Only
Insured Required to Appear in Court as Witness, Juror, or Under Mandatory Quarantine	✓	✓	✓	✓	✓	Restricted to Run/Fly Plans	✓

Since each travel insurance plan has different coverage scopes and terms, consumers are advised to compare them carefully before purchasing. If you are interested in travel insurance and wish to learn more about the products and terms, you can “Ask Anonymously” on the 10Life website or App to receive instant responses from multiple licensed advisors.

Note

1. Source: *Apple Daily*, “Zuji Loses Travel Agency Licence, HKD 130,000 Ticket Refund Not Received” (11 January 2019)

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.

Last updated: 14 Apr 2026

10Life Editorial Team

Our team of professional content researchers focussing on insurance

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10Life Editorial Team

Our team of professional content researchers focussing on insurance

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