Many Vietnamese air passengers have been surprised to receive compensation for their delayed flights thanks to flight delay insurance coverage.

Flight delay or cancelation insurance is becoming more and more popular in Vietnam.

Reimbursement for flight delay insurance purchased through e-wallets is processed more quickly than for that bought directly from airlines’ websites.

T., a Ho Chi Minh City resident, shared her experience of a two-hour flight delay for which she received VND888,000 (US$35.6) in compensation.

She had purchased her VND800,000 ($32) air ticket along with flight delay insurance for VND38,500 ($1.5) through a local e-wallet.

"The compensation amount was very satisfying," she said.

Another traveler was similarly impressed when she received VND1 million ($40) in compensation after a delay of over four hours.

"The compensation was paid so swiftly," she remarked, noting that she, too, had purchased her insurance via an e-wallet platform.

Many insurance providers have begun automating the compensation process, allowing passengers who experience delays to receive payouts from their flight delay insurance more conveniently and faster than before.

In contrast, Hoang who bought an air ticket for a flight from Hanoi to Ho Chi Minh City on a website found it hard to access compensation for a delay, though the insurance was purchased unintentionally.

This means that the ticketing system defaults to flight delay insurance when passengers buy an air ticket.

After checking his previous transactions, he found that other tickets included the insurance, priced from VND37,000 ($1.48) to VND70,000 ($2.8) each.

These insurance packages cost him millions of Vietnamese dong.

"I experienced flight delays but didn't know how to receive compensation," he said.

Meanwhile, many others have expressed frustration, saying that when they contacted insurers to claim compensation for delayed flights, they were met with evasive responses from insurance employees.

Local airlines and e-wallet suppliers have cooperated with insurance companies to offer flight delay and cancelation insurance to air travelers. 

For instance, national flag air carrier Vietnam Airlines is offering flight delay or cancelation insurance, known as Fly Pro, provided by Post And Telecommunication Joint Stock Insurance Corporation.

The insurance is charged at VND60,000 ($2.4) per ticket and gives maximum compensation of VND1.5 million ($60.2).

Airlines Vietjet and Bamboo Airways are not exceptions, offering passengers insurance packages with different fees and benefits. 

Passengers can receive reimbursement within 15 days after a flight delay.

Meanwhile, if passengers buy flight delay insurance provided by Bao Viet Holdings via e-wallet MoMo at the price of VND35,000 ($1.4), they will receive up to VND888,000 in compensation in their e-wallet accounts for a delay of two hours or longer.

Minh Son, director of an online platform that provides tourism and air ticket services, told Tuoi Tre (Youth) newspaper that compensation for flight delays should be made automatically.

AirAsia teamed up with Tune Protect Group, headquartered in Malaysia, to offer flight delay insurance and automate compensation processes.

If an AirAsia flight is delayed for over two hours, the affected passengers will be automatically granted 200 Malaysian Ringgit ($46).

The automated compensation process is aimed at raising trust among passengers and calming down frustrated air travelers.

A representative of a local airline said that the air carrier has worked with an insurer to offer insurance packages to passengers.

The insurer will pay compensation if customers who buy insurance coverage experience a flight delay.

The representative said that insurance companies should adopt digital technology for compensation to improve consumer services, moving toward building a sustainable insurance climate and boosting Vietnam’s aviation and insurance industries.

Statistics from the Civil Aviation Authority of Vietnam showed a rise in flight delays in July.

Vietnam Airlines operated 11,066 flights last month, while Vietjet and Bamboo Airways conducted 10,551 and 1,423 flights, respectively. Of these, 9,114 flights were delayed, representing 36.8 percent of the total and marking an increase of over six percent from the previous month.

According to Circular 19/2023 issued by the Ministry of Transport, a flight is considered delayed if it departs more than 15 minutes later than its scheduled time.

When delays are not caused by passengers, airlines are required to apologize to those affected and cover the costs of meals, lodging, and transportation.

For postponements lasting five hours or more, airlines must refund the cost of tickets upon passenger request.

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