How travel insurance applies amid the coronavirus health crisis
Travel insurers might not help Aussies whose travel plans are disrupted by the deadly and rapidly spreading coronavirus. Here’s what you will and won’t be covered for amid the health crisis.
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Terrified Aussies who want to cancel their flight to China amid the coronavirus outbreak that’s infected 14,380 and killed 304 people are unlikely to be covered by their travel insurer.
The warning comes as travellers willing to defy government advice and travel to the Asian nation are told they may receive restricted coverage, or none at all, if they fall ill to the virus.
Smartraveller’s advice is “do not travel” to China, including the City of Wuhan where the virus emerged.
Finder.com.au urged travellers to check with their insurer as to how they would be covered in the event of a coronavirus disruption.
The comparison site analysed several brands to establish what travellers would be able to claim if their plans were affected by the mystery bug.
But Finder’s money expert Bessie Hassan said if those with an impending China trip wanted to cancel their journey because of the outbreak, it’s unlikely their insurer would help.
“For those who don’t want to go out of fear of contracting coronavirus, insurers may recommend you contact your airline or accommodation directly to request refunds,” Ms Hassan said.
“However if you can’t travel because your hotel has closed down, or your flight is cancelled, you should be able to make a claim.
“Those at higher risk of contracting a virus may also have more grounds to claim, but this will be on a case-by-case basis.”
Finder’s analysis found that Qantas and Travel Insurance Direct would not provide coverage for coronavirus-caused disruptions for polices taken out after January 23. Fast Cover said it wouldn’t help if a policy was purchased after January 24.
Alerts issued by insurers including Australia Post and Covermore on January 23 said travellers should be covered for medical expenses, according to Finder, but some exclusion may apply.
Budget Direct also issued a statement advising said it did not cover claims caused by an event travellers were already aware of.
“If you bought a policy after 20 January 2020, we expect you would have been aware of the 2019-nCoV coronavirus and the possibility of issues arising which could affect travel,” the statement said.
“For these policies, claims that arise due to the 2019-nCoV coronavirus … will be assessed in accordance with your policy wording, including exclusions or limits on cover which may apply, depending upon the circumstances.”
Medibank chief customer officer David Koczkar told News Corp: “Medibank Travel Insurance provides cover for medical expenses as well as cancellation and amendment to travel arrangements, and additional expenses in the case of an epidemic or pandemic.
“For the coronavirus, this applies to policies purchased before 23 January 2020. We encourage our customers to contact us directly for any further information.”
A separate analysis by another comparison site, Canstar, found CGU and HBF’s travel insurance policies said if an alert had already been issued, they would not offer cover for epidemics, pandemics or other infectious disease outbreaks.
It was the same case with AAMI and Southern Cross Travel Insurance, Canstar found.
“Generally, when official travel warnings are announced, a lot of insurance policies are void, so it’s important to monitor destination warnings prior to travel,” Canstar finance expert Effie Zahos said.
Singapore Airlines and Qantas recently confirmed passengers had the option of cancelling, rebooking or changing flights to mainland China free of charge.
This was for customers with tickets issued on or before January 28, up to and including February 29, for Singapore Airlines and SilkAir.
Virgin Australia, which operates one flight daily between Sydney and Hong Kong, confirmed no flights had been cancelled as a result of the coronavirus outbreak.
The airline has offered passengers the option of changing their travel date or destination – no later than 30 days from original travel date – free of change.
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More than 7800 confirmed cases of the novel coronavirus have been confirmed worldwide since it emerged in Wuhan late last year. It has spread to Australia, Germany, Thailand, France and the US, and has killed at least 170 people in mainland China.
Despite Chinese authorities placing Wuhan in lockdown, researchers fear the virus could be difficult to contain, with two studies from UK universities finding that each infected person is passing the disease on to at least two others.
But there are hopes a vaccine could soon be available after a group of Australian scientists became the first lab outside of China to copy the coronavirus.
They have shared it with the World Health Organisation which will distribute it to labs across the world who are working on a vaccine.
Originally published as How travel insurance applies amid the coronavirus health crisis