People planning to travel abroad to a destination on their country’s “green list” still face the risk of not being covered by their insurance. “The pandemic exposed the loopholes and shortcomings in travel insurance policies, when too many travel insurance companies refused to reimburse consumers for COVID-related cancellations,” Consumer Watchdog executive director Carmen Balber told Euronews. Insurers have warned that the so-called green lists could clash with some governments’ advice that states all non-essential travel should be avoided, rendering policies invalidated.
During the coronavirus pandemic, travel insurers have had to bring tailored solutions in reaction to same-day announcements from countries.All travel insurance policies have exclusions, and many exclude more than they cover. Many insurers in the UK even had to stop selling policies while they assessed new risks and offered new plans accordingly. Although some eventually resumed, others, like HSBC, chose not to so they could “focus attention on existing customers whose travel plans have been disrupted”.
The classification of COVID-19 as a pandemic by the World Health Organisation on March 11 “provided clarity because it set up a common general outline,” AXA Travel Insurance CEO, Xavier Blanchard, told Euronews. From then on, a majority of insurance policies would not cover coronavirus-claims because they became “foreseeable” events – especially when most governments advised against travelling.
Will pandemic risks ever be covered by travel insurance? This is unlikely. “Insurers cannot meet all the expenses of such an event,” Dumont said, and if they did, this would lead to a significant rise in prices that would deter consumers from purchasing cover.While the pandemic is still part of our lives, experts advise than reading the fine print when signing up for an insurance policy and going over your government’s instructions for travelling.
Source: Euronews
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