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Post pandemic travel insurance
29/11/2022 By Natalie Smith
Post pandemic travel insurance changes: what you need to know
With international travel back on again, it seems lockdowns and flight bans are a distant memory for the growing number of Aussies choosing to hop abroad. In July alone, more than 900,000 of us flew overseas, a tenfold increase on the year before.
Overseas holidays are well and truly back on our radar, but it’s important to remember the unpredictable nature of global travel. As the pandemic forced travel to a virtual standstill the airline industry continues to face significant challenges as a result. A bumpy recovery along with the unparalleled resumption of travel has led to mass flight cancellations, delays, and lost baggage issues. Airport chaos aside, Covid cases, along with hazardous weather and unexpected events continue to thwart travel plans.
Natalie Ball, director of travel Insurance comparison site Comparetravelinsurance.com.au says that the necessity of travel insurance has been highlighted by the events of the past few years. It’s so essential in fact, that several destinations, including Vietnam, Thailand, Singapore, and Fiji have made it compulsory and may refuse you entry without it.
“A global pandemic has shown us that nothing is certain, particularly when it comes to travel. Things can go wrong in an instant and medical costs abroad associated with Covid and other health conditions are enormous. Once you leave Australian borders, you’re no longer covered by Medicare or private health insurance. That’s why travel insurance is so essential. Now, more than ever, you simply can’t travel without it.”
Am I covered If I catch Covid and can't travel?
Catching Covid before a long-awaited holiday is an obvious concern, and while a rising number of travel insurers now provide medical cover for Covid, a few will also cover your expenses should you catch it and need to cancel or amend your trip.
“Some insurers such as Allianz, Covermore, Fastcover and Nib Travel Insurance, provide cancellation cover should you contract Covid at home or abroad. However, conditions apply. For instance, a clause may apply to policies purchased within 21 days of your departure date. In this event you may only be covered for travel costs made after buying your policy (or 48 hours prior). And you may not be covered for cancellation due to a government issued lockdown.”
“To avoid a nasty surprise, we always advise customers to check their Product Disclosure Statement (PDS) to know what they are and importantly, what they aren’t covered for,” says Ball.
Travellers should also take note that they will most likely require a top tiered, comprehensive policy to be covered for cancellation and lost deposits due to a bout of Covid. Generally speaking, lower priced, basic policies may not provide cover for cancellation costs and will have lower cover limits.
Am I covered if I catch Covid and need to go to hospital?
While travel insurers did not, as a rule, cover Covid early on in the pandemic, the majority of insurers have evolved to reflect the ‘new normal.’ While policies may differ in terms of their coverage, the overwhelming number do now provide medical cover for those who catch Covid overseas and require medical treatment.
“We are seeing a marked increase in insurers that do provide medical cover should you fall ill with Covid,” says Ball. “However, travellers still need to take the time to understand their policies and be clear on their coverage.”
Am I covered if I catch Covid and need to go to hospital?
Travel insurance when cruising- whether in domestic or international waters- is a must. Ball clarifies.“Once you’re out on the water, you’re no longer covered by Medicare or your private health fund, even when sailing between Australian ports. That means that any medical expenses you incur are now at your own cost. That’s why it’s incredibly important to ensure you are covered by travel insurance.”
While most cruise ships have their own medical facilities, a basic consultation can cost far more than on land. And should you require more urgent medical care, the price to get you to the closest hospital is eye watering.
“When it comes to cruising, the pandemic proved to us just how vulnerable travellers can be when out at sea,” says Ball. “You really can’t underestimate how crucial it is to take out travel insurance, even if you’re only hours away from home.”
For domestic and international cruising, 1Cover Travel Insurance, Allianz, Cover-More, NIB and Zoom Travel Insurance all include medical cover in the event you fall ill with Covid. In most cases, you will be required to purchase a ‘cruise’ add-on in order to be covered.
Am I covered if my flights are cancelled due to staff shortages?
Travel insurance when cruising- whether in domestic or international waters- is a must. Ball clarifies.“Once you’re out on the water, you’re no longer covered by Medicare or your private health fund, even when sailing between Australian ports. That means that any medical expenses you incur are now at your own cost. That’s why it’s incredibly important to ensure you are covered by travel insurance.”
While most cruise ships have their own medical facilities, a basic consultation can cost far more than on land. And should you require more urgent medical care, the price to get you to the closest hospital is eye watering.
“When it comes to cruising, the pandemic proved to us just how vulnerable travellers can be when out at sea,” says Ball. “You really can’t underestimate how crucial it is to take out travel insurance, even if you’re only hours away from home.”
For domestic and international cruising, 1Cover Travel Insurance, Allianz, Cover-More, NIB and Zoom Travel Insurance all include medical cover in the event you fall ill with Covid. In most cases, you will be required to purchase a ‘cruise’ add-on in order to be covered.
Am I covered if my flights are cancelled due to staff shortages?
Post-pandemic travel has seen many transport service carriers ramping back up to normal levels of service, but this hasn’t come without its fair share of hiccups. Large scale staff shortages and reduced flight capacities have led to mass cancellations, leaving passengers stranded and confused over their entitlements.
Ball notes that passengers affected by reduced flight capacities should first contact the airline directly before making a claim through their travel insurer.
“In these instances, it should fall on the airline to compensate you as they haven’t provided you with the service you have paid for,” says Ball. “Make sure you’ve spoken to the airline about your refund or rebooking options before contacting your insurer. Generally, cancellations due to technical, mechanical and operational issues with the airline aren’t covered.”
When delays and cancellations fall outside the airline’s control, travel insurance benefits will usually kick in. For instance, you would be covered if your flight was cancelled due to bad weather, natural disaster, riot, strike or civil unrest.
Insurers and Covid cover
The below insurers now offer travellers cover for medical treatment of Covid and in some instances, cancellation cover too.
Insurer Underwriter Medical cover for Covid Cancellation cover for Covid Buy Now
1Cover Certain underwriters at LLoyd's Yes No Go To Insurer
Amex Chubb Insurance Australia Limited Yes Yes Go To Insurer
Fast Cover Lloyds Yes Yes Go To Insurer
InsureandGo Mitsui Sumitomo Insurance Company Limited Yes Yes Go To Insurer
Southern Cross Certain underwriters at LLoyd's Yes Yes
Webjet Covermore Yes Yes Go To Insurer
Worldcare Allianz Australia Insurance Limited Yes Yes Go To Insurer
Zoom Travel Insurance Certain underwriters at LLoyd's Yes No Go To Insurer
General Advice Warning: The contents of this article were accurate at the time of writing. Insurers change their policies from time to time, so some information may have changed. You should always read the Product Disclosure Statement of your chosen insurer to understand what is covered and what isn't. The information provided is of a general nature only and does not take into account any personal objectives, financial situation or needs. Before making a decision you should consider the appropriateness of the information having regard to your personal circumstances.
Take note of exclusions
Travellers should also be aware that certain exclusions will apply to all travel insurance policies. For instance, ignoring government ‘Do Not Travel’ warnings or border closures will almost certainly void your cover. In this instance travellers may be eligible for refunds or credit notes from their travel provider.
Ball also encourages people to declare any relevant pre-existing illnesses to their insurer.
“As it’s been a while since many of us have travelled, it's important to disclose any recently diagnosed conditions or illnesses to your insurer. Failure to declare a relevant medical condition could leave you underinsured and therefore liable for tens or hundreds of thousands in medical costs should you require treatment”
The cost of getting home
Apart from the significant overseas medical expenses that travellers may incur, travel insurance will also cover the cost to repatriate you back to Australia if needed, an exorbitant price that most people aren't aware of.
“Repatriation can soar into the hundreds of thousands, and that will usually follow some highly considerable medical costs. Travellers need to be made aware of these costs before foregoing a travelinsurance policy,” says Ball.
Ball also notes that pricey inconveniences like lost luggage and flight cancellations should also be accounted for when booking a trip.
“While medical injuries and major incidents often make the headlines, a misplaced suitcase or last-minute flight delay can add significant cost and hassle to your holiday. In many instances travelinsurance will cover expenses for permanently lost and stolen belongings.”
The sooner you buy, the better
Finally, Ball advises that sooner is always better when it comes to purchasing travel insurance.
“Buy travel insurance as soon as you’ve booked your airfares and accommodation. You’ll have added peace of mind, along with a long list of benefits that will kick in almost straight away. In a post pandemicworld, there’s really no excuse to go without it.”
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