***Updated 17th March 2020
Over the last couple of weeks, consumers have understandably become more concerned about their travel arrangements due to the outbreak of the coronavirus (Covid-19).
So far, 162 countries have been affected and The Foreign and Commonwealth Office (FCO) has now advised against travel to a number of European destinations, as well as mainland-China.
The travel insurance industry has noticed a significant effect on travel plans, and an increasing number of concerns raised by those with upcoming trips.
To help address the public’s concerns, consumer awareness initiative Travel Insurance Explained has taken a look at the industry, to help customers understand the cover they could be entitled to in these circumstances.
I want to cancel my holiday – what should I do?
Firstly, it is important to note that travel insurance companies will not cover claims relating to fear of the coronavirus – this is known as ‘disinclination to travel’.
Those who have booked a package holiday and need to cancel their trip in light of new FCO advice will need to speak directly to their tour operator, to see if they are able to rearrange their trip dates, change their destination, or receive a refund before contacting their insurer.
If customers are able to amend their trip, they need to contact their travel insurer to change their policy dates/destination. Some insurers will be able to make these amendments without applying an admin fee. However, there may be an additional premium to pay for destination or trip duration changes. For example, if you were due to travel to France and are now travelling to America, your policy price may increase.
If people have booked their holiday independently and the FCO advice changes for the destination they are travelling to, they will need to speak to their airline and accommodation provider about getting a refund. At the time of writing, we are aware that airlines such as British Airways, Virgin and Easyjet are allowing amendments and in some cases, refunds. If they are unable to get a refund, they should contact their travel insurer.
Different travel insurers provide different insurance products. So, Travel Insurance Explained recommend all customers check their particular policy wording to confirm exactly what they are covered for.
Which insurers will cover me if the Foreign and Commonwealth Office (FCO) advice changes?
To help consumers understand whether they will be covered for coronavirus-related claims, we have compiled a list of the existing guidance from some of the most prominent travel insurance providers in the market (information correct at the time of publication but may be subject to change):
- Aviva has paused the sale of travel insurance policies. Customers who purchased a policy before 9th March are able to submit a claim for cancellation if the FCO advice changes for the destination they are travelling to, provided their policy specifically covers for a change in FCO advice and that their policy was purchased before this advice was given. We advise policyholders to check their policy wording or contact their insurance provider directly.
- AXA customers who bought a policy before 15:00 on 13th March 2020 are able to submit a claim for cancellation if the FCO advice changes for the destination they are travelling to, provided they are due to travel before the 30th April 2020. Any policies bought after 15:00 on 13th March 2020 will not cover any cancellation claim in relation to coronavirus. AXA will also no longer be selling policies to Spain, France, Italy or Mainland China from this date. We advise policyholders to check their policy wording or contact their insurance provider directly.
- Chaucer brands have been updated to reflect that customers who purchased a policy 00:01 on 17th March 2020 are able to submit a claim if the FCO advice changes for the destination they are travelling to, provided their policy specifically covers for a change in FCO advice and that their policy was purchased before this advice was given. Customers who purchased a policy after 00:01 on 17th March 2020 are not able to submit a claim for any circumstances relating to coronavirus or other pandemics. We advise policyholders to check their policy wording or contact their insurance provider directly.
- Columbus customers who purchased their policy before 23:59 on 13th March 2020, are able to submit a claim for cancellation if the FCO advice changes for the destination they are travelling to, provided their policy specifically covers for a change in FCO advice and that their policy was purchased before this advice was given. Any policies purchased after 23:59 on 13th March 2020will not cover COVID-19 related claims. We advise policyholders to check their policy wording or contact their insurance provider directly.
- Direct Line and Churchill have paused the sale of travel insurance policies as of 13th March 2020. Customers who bought a policy before this time are able to submit a claim for cancellation if the FCO advice changes for the destination they are travelling to, provided their policy specifically covers for a change in FCO advice and that their policy was purchased before this advice was given. We advise policyholders to check their policy wording or contact their insurance provider directly.
- Union Reiseversicherung AG (URV – UK Branch) customers who purchased a policy before 13th March may be able to submit a claim for cancellation if the FCO advice changes for the destination they are travelling to, provided their policy specifically covers for a change in FCO advice and that their policy was purchased before this advice was given. We advise policyholders to check their policy wording or contact their insurance provider directly.
- Mapfre has paused the sale of travel insurance through some of its brands. Customers who purchased a policy with a Mapfre brand before 5pm on 13th March 2020 are able to submit a claim if the FCO advice changes for the destination they are travelling to, provided their policy specifically covers for a change in FCO advice and that their policy was purchased before this advice was given. We advise policyholders to check their policy wording or contact their insurance provider directly.
- Allianz customers with an existing policy who submit a claim in relation to coronavirus will have their claims assessed on a case-to-case basis. We advise policyholders to check their policy wording or contact their insurance provider directly.
- LV= have paused the sale of travel insurance as of March 11th. It is not known how this will affect current policyholders and we advise policyholders to check their policy wording or contact their insurer directly.
- Avanti customers with an existing policy may be able to submit a claim if the FCO advice changes for the destination they are travelling to, provided their policy specifically covers for catastrophes such as health outbreaks and that their policy was purchased before this advice was given. We advise policyholders to check their policy wording or contact their insurance provider directly.
- Admiral has paused the sale of travel insurance policies as of 13th March 2020. Customers with an existing policy are able to submit a claim for cancellation if the FCO advice changes for the destination they are travelling to, provided their policy specifically covers for a change in FCO advice and that their policy was purchased before this advice was given. We advise policyholders to check their policy wording or contact their insurance provider directly.
How can I check if I am covered for cancellation or curtailment for a change in advice from the Foreign and Commonwealth Office (FCO)?
If you are unsure whether your insurance policy covers you for cancellation or curtailment in relation to FCO advice, we advise that you check your policy wording (which would have been sent or emailed to you at the time of purchase).
It is also worth checking to see whether any policy extensions or add-ons which you may have purchased will cover you for these circumstances. These will differ from insurer to insurer so please check your documentation.
To find cover information relating to cancellation, look for a section titled, ‘if you are unable to go on your trip’, ‘cancellation’ or ‘trip disruption’. For more information on what cancellation is, please find the Travel Insurance Explained article here.
To find cover information relating to curtailment, look for a section titled, ‘if you have to cut your trip short’, ‘curtailment’ or ‘trip disruption’. For more information on what curtailment is, please find the Travel Insurance Explained article here.
Under these sections, you will find a list of events/circumstances which are covered by your policy, labelled as ‘if you are unable to travel because…’, ‘if you have to cut your trip short because…’, ‘you will be covered if…’ or similar. You will also find a list of things you are not covered for, labelled as ‘what is not covered’, ‘exclusions’, ‘no cover is provided under this section for…’ or similar. Check these lists carefully to see if the reason for your trip cancellation or curtailment is covered by your policy.
If you are still unsure whether you are covered, look for the section titled, ‘General Exclusions’, sometimes called ‘how my policy works’. ‘General Exclusions’ are things that your insurance will not cover. Typically, exclusions include; disinclination to travel, terrorism, natural disasters and travelling against government advice, as well as other factors. For more information on ‘General Exclusions’ please find the Travel Insurance Explained article here.
