Etiqa Insurance extends coverage to customers affected by Jetstar Asia closure

Etiqa Insurance Singapore announced on 16 June 2025 that it will extend travel insurance coverage for customers affected by the impending closure of Jetstar Asia. The low-cost airline is scheduled to cease operations after 31 July 2025, raising concerns among travellers with future bookings.

The insurance company’s move comes one week after Income Insurance introduced a similar measure. Both initiatives aim to mitigate the financial strain faced by travellers suddenly confronted with cancelled flights and disrupted itineraries.

According to Etiqa, customers who purchased single-trip or annual travel insurance before 8.00 a.m. on 11 June 2025 will be eligible to claim under the extended coverage. These claims include a fare difference of up to S$200 when rebooking flights within the same travel period.

In addition, affected travellers may seek reimbursement for non-refundable expenses such as accommodation, local transportation, and prepaid travel activities. These claims will remain subject to the terms and limits of the respective policies.

Recognising the challenges caused by the sudden announcement, Etiqa said it had also lengthened its claim submission period. Customers now have 90 days, rather than the usual 30, to file claims. The insurer explained that this extension allows more time for travellers to review their revised plans before lodging claims.

Raymond Ong, Chief Executive Officer of Etiqa Insurance Singapore, said the measure was introduced with customers’ stress and uncertainty in mind.

“We hope this goodwill gesture helps ease challenges faced by those with disrupted travel plans,” Ong said. “We remain committed to being ‘With You’ throughout your journeys, especially in unexpected situations.”

Travellers seeking assistance can contact Etiqa through WhatsApp, by calling +65 6887 8777, or by emailing [email protected] for further clarification.

Jetstar Asia has confirmed that customers with bookings beyond 31 July will be contacted directly and offered a full cash refund. The airline has pledged to handle refund requests efficiently, though passengers are advised to await official communication before taking further steps.

The Consumers Association of Singapore (CASE) is also involved in the process. The organisation is working with Jetstar Asia to clarify refund procedures and assist consumers in the event of disputes regarding reimbursements.

Income Insurance, which announced its initiative earlier, is offering eligible policyholders coverage for unused and prepaid travel expenses under its pre-trip cancellation clause. The coverage applies to single-trip and annual travel insurance plans purchased before 8.00 a.m. on 11 June 2025.

Expenses covered include accommodation, tours, amusement park tickets, and local transport. However, Jetstar Asia tickets themselves are excluded from reimbursement under the scheme. Refunds from Income Insurance will be subject to policy limits and processed when customers are unable to recover costs from service providers.

The closure of Jetstar Asia marks the end of operations for one of Singapore’s longest-running budget carriers. Industry observers note that the exit could disrupt regional travel connectivity, particularly for short-haul routes linking Singapore with neighbouring countries.

In the immediate term, affected passengers are being urged to act quickly to secure alternative flight options. Airlines operating in the same network, including Singapore Airlines and Scoot, may see increased demand as travellers seek to rebook their itineraries.

Insurers such as Etiqa and Income are seeking to fill gaps left by the airline’s closure, aiming to reduce the financial impact on policyholders. Both companies have stressed that their measures are goodwill extensions beyond standard policy coverage.

For now, passengers holding Jetstar Asia tickets are advised to monitor communications from both the airline and their insurers. Customers can also reach out to CASE for advice if difficulties arise during the refund or claims process.

As the 31 July deadline approaches, further developments are expected as airlines, insurers, and consumer bodies work to manage the fallout from Jetstar Asia’s closure.