Coronavirus outbreak has just stunned the financial as well as the travel world to a massive extent. It has just forced every country to take strict steps for the control of the disease. The travel industry was on complete shutdown in the lockdown period. There was a strict ban imposed on traveling of foreigners from coronavirus infected countries to travel the world like citizens from China, Italy, the USA, Spain etc.
One thought must come in your mind that whether your Travel Insurance Policy will provide cover for Coronavirus?
Well, the worry is obvious. Let’s get into the detail of the concept of Coronavirus Travel Insurance.
What is Travel Insurance?
Travel Insurance is insurance that provides coverage for all unexpected and unwanted events while travel journey be it domestic or international. Coverage for multiple kinds of expenses like medical expenses, lost luggage, flight cancellation, delays in flights, loss of passport, etc. Get different and special covers for domestic, international, and travel insurance policy for different age groups.
What Is The Impact Of Coronavirus On Global Economy And Travel Industry?
Coronavirus first case was reported in Wuhan city, China on 31 December 2019 in a New Year party. It took some time to identify the reason behind this virus. Coronavirus symptoms were very common flu-like dry cough, high fever and difficulty in breathing. In no time it got spread in the whole world 170+ countries and was declared as Pandemic by WHO on 11 March 2020.
The emergency state was declared in a number of countries after the increment in Death rates at massive rates due to coronavirus. The travel was kept on hold and all the visas got suspended for a certain period of time. All international flights were on a complete ban from March 22, Janta Curfew. The entry of foreigners and Indian citizens from highly affected countries like China, Italy, Spain etc.
The travel industry was worst affected by the coronavirus pandemic. The battle with coronavirus is still on and the condition has not gone to the recovering stage yet as it is a very complicated and time-consuming process. Travel and tourism industry not only hits the travel sector but also several related sector that were somehow dependent upon the traveling of people like hotel occupancy rate, earning source of travel destinations, employment rates etc.
Time To Look For Some Facts and Figures
- The travel and tourism industry contributes 10% of the Global GDP.
- Travel restrictions were imposed on 200+ countries according to the report of UNWTO- United Nations World Tourism Organization
- More than 70,000 commercial flights were shut down and canceled due to lockdown.
Before & After Situation Of Travel Insurance During Coronavirus-
If someone has booked travel tickets after the declaration of Coronavirus as a pandemic by WHO then it will not be covered under Travel Insurance Policy. The exact date was 12 March, 2020 when it is declared as Pandemic for the world. All the cancellations before 12 March covered under Travel Insurance policy.
Now one should check for the latest and updated Travel insurance Policy. Check whether it provides cover for Coronavirus and must read the updated details carefully. Even now it is suggested to ask for the updates in the existing travel insurance policy from your policyholder agency. It is advised to immediately ask for the claim compensation as some policies may have a stricter cut-off rate.
Some insurance policies may not provide Coronavirus coverage as it has become a much known event. At this point of time so government and travel advisories are against travel to some highly affected countries. From where the insurance agencies are taking leads and providing the best terms in their travel insurance policies.
The insured persons who were not able to travel during Coronavirus and have taken insurance policy before Coronavirus declaration as pandemic should be able to cancel the policy. One must check with their insurance policy agencies to know about cut-off dates for refunds.
Points To Remember-
- One can only ask to cancel the policy if he/she has not made any claim from the policy yet.
- If there are some pending claims left on the travel insurance policy then the cancel policy request will be nullified.
- You can cancel and insurance policy after a certain period of time after having taken the policy out, so it suggested to check for this point as well.
Coverage for Trip Delays and Cancellations
If the insured person is willing to get covered from cancellations and travel postpones delays then he/ she will surely get cover against their Travel Insurance Policy. The claim amount will be as per the terms and conditions of the travel insurance policy of the agency. The policy must have purchased before the declaration of the coronavirus disease as a pandemic by WHO.
What Is Included In New Coronavirus Travel Insurance Policy?
With the outbreak of coronavirus, a new situation has raised. Will My Travel Insurance provides cover for Coronavirus disease expenses?
Keeping in mind the situation of market new insurance policies have been launched. These focus on providing cover for Coronavirus expenses during the travel. One needs to check for all the legal papers and exclusions and inclusion of the policy. Only then one can expect maximum benefit while claiming the process. The most important thing that must be checked before taking Travel Insurance are-
- Cover for cancellation of travel bookings
- Medical treatment while traveling
- Value of your possessions and baggage
- Cover for additional activities
- And so on