Open border sparks warnings over Covid travel insurance

Australians leaping at the chance to fly overseas are being urged to take out travel insurance that protects them from Covid-related medical costs and delays.

‘It’s a good idea to cover ourselves for the possibility of Covid-19-related disruptions every time we book travel.’ Picture: iStock

Australians leaping at the chance to fly overseas are being urged to take out travel insurance that protects them from Covid-related medical costs and delays.

Kelly Spencer, Flight Centre’s general manager Australia, said since the onset of the pandemic a number of insurers and suppliers had adjusted their policies to take Covid-19 risks into account.

“As Australia and the world re-opens, we’re urging all our customers to consider insurance with Covid-19 benefits when booking either domestic or international travel,” Ms Spencer said.

“We’re living in a world where Covid-19 will continue to have an impact on our lives wherever we go for a while to come. So, it’s a good idea to cover ourselves for the possibility of Covid-19-related disruptions every time we book travel. Having that reassurance in uncertain times really does pay for itself.”

Flight Centre is affiliated with Cover-More, which offers cancellation and amendment cover related to Covid-19, and cover for overseas medical treatment costs if a traveller is diagnosed with the virus while away.

Cover-More chief executive Asia Pacific Judith Crompton said the insurer had introduced Covid-related benefits in December last year for travel to New Zealand. Those benefits would be extended to other countries as the Federal Government opened more travel corridors, with premiums kept within 10 per cent of pre-Covid prices.

“The types of additional Covid-19 benefits we introduced in the last 12 months in Australia include cover for cancellation if you contract Covid-19 and are placed into quarantine and you cannot start your trip, or if you contract Covid-19 while travelling and are hospitalised or placed into quarantine,” she said.

An Insurance Council of Australia spokesperson warned that the majority of insurance plans would not cover government-initiated border closures and travel bans.

“Most travel insurance policies exclude cancellation costs arising from government travel bans, as it is impossible for insurers to price the risk associated with (them),” the spokesperson said.

Tom Manwaring, chairman of AFTA.

Tom Manwaring, chairman of the Australian Federation of Travel Agents, advised consumers to avoid “inferior” credit card insurance policies tagged on to airfare and hotel transactions.

“Insurance is a fine-print part of the journey and I think that fine print has to be checked and discussed fully with your travel agent,” he said.

Mr Manwaring was concerned the complexity surrounding insurance in the Covid age would discourage travellers from covering themselves.

“It should not deter people from taking out travel insurance, which I think should actually be mandatory for people leaving the country.”