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Since early 2019, Hong Kong Airlines has been repeatedly reported to be in financial distress. By early December, the Air Transport Licensing Authority demanded that the airline improve its financial situation by 7 December, failing which its licence might be revoked. This incident immediately raised concerns about whether travel insurance would cover losses due to trip cancellations caused by an airline’s insolvency, especially with the Christmas and New Year holidays approaching, when many travel-loving Hong Kong residents have already planned overseas trips. In fact, there are few travel insurance products in the market that cover airline insolvency, with only Blue Cross, BOCG Insurance, and Well Link Insurance offering such protection. However, as the saying goes, “buy travel insurance early to enjoy peace of mind”; if a crisis has already emerged before purchasing insurance, the insurer may not compensate for related losses.

Travel insurance policies in the market typically limit trip cancellation coverage to specific reasons, such as the death, serious injury, or illness of the insured, their immediate family members, or travel companions, as well as sudden strikes, riots, adverse weather, or infectious diseases at the destination. However, only Blue Cross with its "Travel Smart 智在遊", BOCG Insurance with its "Global Select Travel Protection Plan", and Well Link Insurance provide coverage for trip cancellations due to airline insolvency.

Insurance Company	Maximum Coverage (HK$)
Blue Cross: 智在遊旅遊保險 "Special Allowance – Airline Insolvency" (Applicable to additional expenses for separately purchased transport tickets)	Premier Plan: $2,000 Smart Plan: $1,000
BOCG Insurance: 環宇智選旅遊保障計劃 "Coverage for Trip Cancellation Due to Airline Insolvency"	Diamond Plan: $50,000 Gold Plan: $40,000 Silver Plan: $30,000
Well Link Insurance: Travel Insurance Airline Bankruptcy for Flights to and from Hong Kong International Airport	Travel 200: $30,000 Travel 75: $20,000 Travel 25: $10,000

Regarding the Hong Kong Airlines crisis, the aforementioned insurance companies have also provided clarifications. Below is the information we received as of the deadline:

Well Link Insurance stated: “From midnight on 2 December 2019 until further notice, customers travelling with Hong Kong Airlines who purchase and are issued a Well Link Insurance travel insurance policy will not be covered for trip cancellations due to airline bankruptcy and/or insolvency. Policies issued prior to this date remain unaffected.”

Blue Cross had temporarily posted a notice on its website stating that, for new policies effective from 7 January 2019, claims for Hong Kong Airlines customers under the “Special Allowance – Airline Insolvency” would not be compensated until further notice. This notice was removed during the year, and as of 2 December 2019, Blue Cross has not reissued or reiterated such a notice. However, in response to media enquiries, Blue Cross customer service indicated that the coverage does not include situations where an airline’s licence is “suspended”, stating, “Suspension is uncertain as to whether operations will resume, whereas insolvency means complete closure.” (See Note 1). We consulted legal opinion on this matter, and if the licence suspension is due to financial difficulties causing the airline to cease operations, without an official declaration of insolvency or clarity on whether operations can resume, it may seem like semantic wordplay for insurers to use “suspension does not equal insolvency” as a shield. In cases of claim disputes, consumers are encouraged to file complaints with the Insurance Complaints Bureau for adjudication.

BOCG Insurance also issued a notice amending its terms, stating that for policies purchased after 18:00 on 3 December 2019 under the Global Select Travel Protection Plan, coverage for trip delays and cancellations due to airline insolvency will not apply to customers travelling with Hong Kong Airlines. Additionally, BOCG Insurance has an exclusion clause stipulating that if the cause of trip cancellation already existed prior to the policy application, no compensation will be provided. At this point, if individuals purchase travel insurance knowing that Hong Kong Airlines risks licence suspension, insurers may not compensate for related trip cancellations as the risk is already present.

In principle, insurance only covers “unforeseeable” risks. If the reason for trip cancellation existed before purchasing the policy, insurers have grounds to deny claims. If you are particularly concerned about whether Hong Kong Airlines is covered, you may enquire with the insurer’s customer service department before purchasing the policy.

If you have any questions about travel insurance, you can use the “Ask Anonymously” feature on the 10Life website or App to receive immediate responses from multiple licensed advisors.

Note 1:

《Hong Kong 01》 3-2-2019: 《【Hong Kong Airlines Crisis】Some Travel Insurance Covers Insolvency but Not Licence Suspension》

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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