Manulife has updated its travel insurance policies to classify worldwide jet fuel shortages as a "known event", a change that will significantly affect coverage for Canadian travellers. Starting Tuesday, the insurer categorized fuel shortages under its Trip Cancellation and Interruption Insurance coverage.
The policy change means that airlines and travel suppliers—not Manulife—bear responsibility for addressing cancellations or flight changes caused by fuel shortages. "Any coverage available under Manulife travel policies is subject to coordination of benefits and is secondary to other sources of compensation, including remedies offered by the travel supplier or applicable credit card refunds," the company stated.
The timing of policy purchase determines eligibility for coverage. Canadians who bought Manulife travel insurance before May 5, 2026 may still qualify for misconnection or disruption benefits if their trips were affected by fuel shortages. However, policies purchased on or after May 5 will not provide coverage for fuel shortage-related disruptions, as Manulife now considers it a pre-existing "known event".
For travellers who have already departed and purchased policies before the May 5 deadline, coverage may still apply if their trips were disrupted by fuel shortages. Certain benefits such as missed connections or travel disruptions may continue to apply depending on individual policy terms and circumstances.
The fuel shortage has triggered widespread travel disruptions across Canada. Air Canada, WestJet, and Air Transat have announced suspensions of some routes or reductions in capacity to manage fuel costs, prompting Manulife's policy adjustment in response to rising flight prices and cancellations affecting Canadian travellers.
