As Coronavirus (2019-nCoV) continues to escalate worldwide, travellers are asking will Travel Insurance cover me?
The World Health Organisation (WHO) has declared Coronavirus a public health emergency of international concern. In addition, the Australian government has introduced strict travel restrictions relating to travel to and from mainland China. DFAT has also issued a “DO NOT TRAVEL” for all of China.
Will my travel insurance cover me for Coronavirus?
Firstly, it depends on the type of travel insurance policy you have purchased.
Business Travel Insurance
Also known as Corporate Travel Insurance, this form of travel insurance is broader that standard leisure travel insurance policies. These policies are more likely to provide cover.
Standard Leisure Travel Insurance
Leisure travel insurance designed for individuals are generally more restrictive than Business Travel Insurance policies. Theses policies may contain specific exclusions for viruses which have been declared a pandemic, epidemic or public health emergency.
For an insurer to apply this exclusion, they will need a government agency such as Department of Foreign Affairs and Trade (DFAT) or the World Health Organisation to declare a virus that fits within their excluded virus definition.
How do I know if I’m covered?
If you have a travel insurance policy that doesn’t specifically exclude Coronavirus, then it depends on the following factors:
- When you purchased your policy
- Where you are travelling too
- When you are travelling
On or around the 20th January 2020, most insurers determined that Coronavirus was a known event. Insurance is designed to cover “unknown events” so once something becomes known, it’s too late to buy insurance cover.
China, Iran and Italy – DO NOT TRAVEL
If you booked your travel after 20th January 2020, then it’s likely you will NOT be covered. This is due to insurers considering Coronavirus a known event and no longer unforeseen. This would apply to cancellation costs and any medical expenses.
Travellers who were already in China prior to 20th January 2020 and had previously purchased travel insurance are likely to be covered for medical expenses and any associated cancellation costs.
If you booked your travel to China and purchased travel insurance prior to 20th January 2020 then you may be covered for cancellation costs.
Contact your insurance broker or insurance provider if you are in any doubt.
Japan, South Korea and Mongolia – EXERCISE A HIGH DEGREE OF CAUTION
- As at the 9th March, DFAT has raised the travel advice for Japan and Mongolia to “Exercise a High Degree of Caution”.
- South Korea has been elevated to “Reconsider you need to travel”.
- You should continue to monitor DFAT’s Smart Traveller website for updated advice in respect of these countries.
- Based on the current advice levels, you may have cover depending on whether you purchased your policy prior to the 20th January 2020 or your insurers specific cut-off date.
Contact your insurance broker or provider if you are in any doubt.
Other Countries
- You should continue to check DFAT’s Smart Traveller website for updated advice in respect of these countries.
- Any countries listed as “Do Not Travel” or “Reconsider Your Need to Travel” should be checked with your insurance broker or provider.
- Based on the current advice levels, you may have cover depending on whether you purchased your policy prior to the 20th January 2020 or your insurers specific cut-off date.
Contact your insurance broker or provider if you are in any doubt.
What if I’m not covered under my policy?
Some travellers may not need to rely on insurance as some airlines are offering full refunds for customers who bought tickets to, from, or via mainland China issued before the deemed date of knowledge of the Coronavirus whilst other airlines whose passengers had China as part of their itinerary may be offered a refund.
How do I access a Business Travel Insurance policy?
Crucial Insurance and Risk Advisors are experts in designing comprehensive travel insurance for businesses and their employees. This form of travel insurance is generally broader than standard leisure travel policies.
Business Travel Insurance provides your employees with a range of benefits whilst travelling on business. Cover can also extend to purely overseas leisure travel for directors and senior management, including their accompanying spouse and dependent children.
If you would like to find out more about the benefits of Business Travel Insurance contact the Crucial Insurance team on 1300 400 707 or email info@crucialinsurance.com.au.
This article was written by Tony Venning,
Managing Director at Crucial Insurance and Risk Advisors.
For further information or comment please email info@crucialinsurance.com.au.
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