If Covid-19 interrupts my travel plans, what will international travel insurance cover?
It's the question many travellers around the world are already asking and, if New Zealand's planned border reopening goes ahead, many Kiwis will soon be asking it too.
The pandemic has dramatically changed the risk involved with travel, not just from a health perspective but also a cost, as cancelled flights and changed borders can scrap plans in an instant.
From an unknown, uninsurable risk, some insurers are now providing Covid-19 cover with policies, but not everything is covered if Covid-19 hits.
To start, it's important to note the Government currently advises against people travelling overseas.
Due to the risk of Covid-19, MFAT's safe travel advice for New Zealanders continues to be "do not travel overseas at this time," due to the risk of Covid-19, with the exception of the Cook Islands.
A key word here is 'advice'; meaning, you aren't legally prevented from travelling but it will be far harder to get cover for Covid-19 related events.
Namely because if the Government considers something risky, insurers will too. The result? Covid-19-related travel insurance tends to be limited and, more importantly for travellers, it will not apply while Safe Travel advises against travel.
"We're a long way out of the woods yet," says Tim Grafton, chief executive of Insurance Council New Zealand.
With the possible emergence of new 'variants of concern' such as Omicron and changing travel restrictions, Grafton says travellers should be aware that some risks will not be covered.
"It will evolve and insurers will try to be as supportive as they can be, but there won't be an open, coverall approach while Covid-19 remains a pandemic."
Despite Government's recent announcement to scrap MIQ for some travellers early next year, Grafton said this won't change much in terms of insurance cover.
"Whether or not people are required to be in MIQ or not has no impact on travel policies," he said, although international travel might become more common.
As a general rule, most Covid-19 policies will provide cover for personal disruption by an individual case or cluster.
This means, if your trip is cancelled or cut short as a result of you or a relevant person getting Covid-19, you will be covered.
One glaring exclusion from many Covid-19 policies is large-scale, government-mandated restrictions or snap lockdowns.
According to Southern Cross, including this in cover would be too expensive.
"Our customers also want affordable travel insurance, so our policies currently don't provide cover for lockdowns, which would expose us to much greater insured losses," the company told ABC news.
Yet, if Europe is anything to go by, the threat of a snap lockdown is still very real in many countries.
Additionally, most will not cover Covid-19 related costs if you enter quarantine or self-isolation you knew about in advance, visit a "Do Not Travel" country, travel against doctor advice, or are on an itinerary involving cruise travel.
Note: Much like an injury or accident, the Covid-19 related event must occur after purchasing your policy in order to be covered.
Some destinations like Singapore, Fiji and Thailand require visitors to have travel insurance that includes Covid-19 coverage and a minimum cover value.
Buy insurance before you buy anything related to your trip.
Limited cover for events relating to Covid-19 if fully vaccinated and purchase Domestic or TravelCare travel insurance policies.
Covered:
If you or a relevant person are diagnosed with Covid-19 and you must change or cancel travel plans.
Medical expenses if you are diagnosed with Covid-19 while travelling.
If you or a relevant person are diagnosed with Covid-19 after you leave and the journey is interrupted or cut short.
Not covered:
Destinations without a SafeTravel website of 'Exercise normal safety and security precautions' (level 1) or 'Exercise increased caution' (level 2).
Government-issued travel bans, lockdowns or border closures relating to Covid-19.
Do not cover any cancellation costs or additional costs incurred because of Coronavirus (Covid-19) at this time.
Covered:
If you or a relevant person are diagnosed with Covid-19 and you must change or cancel travel plans.
NZ Government-sanctioned quarantine or self-isolation that means you cannot go or continue on your trip.
If you are denied boarding on any scheduled public transport service based on the suspicion that you have Covid-19.
Not covered:
Other epidemics and pandemics.
Disinclination to travel due to fear or change of mind.
Travel taken against New Zealand Government advice.
Government-issued travel bans, lockdowns or border closures relating to Covid-19.
Quarantine or mandatory isolation applying to a population or part of a population.
Single trip policies cover:
If you or a relevant person are diagnosed with Covid-19 and you must change or cancel travel plans.
Your leave is revoked due to Covid-19 as an essential worker.
Denied boarding due to positive covid-19 test at NZ airport or port.
Cancellation or amendment when non-travelling relative falls ill with covid-19 or passes away.
Treatment for Covid-19 while travelling.
Accommodation and transport costs if you have to stay/quarantine in a destination after getting Covid-19.
Repatriation flight if you fall ill with Covid-19.
If you can't stay with someone because they have Covid-19 (only AU + NZ).
Travel delay or missed connection due to Covid-19 on premises (only AU + NZ).
Holiday activity, show or concert cancelled due to Covid-19 on-premises (only AU + NZ).
Early return if a non-travelling relative or business partner in NZ or Australia is diagnosed with a life-threatening case of Covid-19.
Not covered:
Government-issued travel bans, lockdowns or border closures relating to Covid-19.
Mandatory quarantine or isolation related to arriving to an area.
Cruise related travel.
The international insurance broker began providing 'Epidemic Coverage Endorsement' this year as an add on for Covid related travel claims.
Covered:
Emergency medical care should holders become ill with Covid-19 on their trip.
Trip cancellation and trip interruption policyholder, their family member or travel companion becomes ill with Covid-19 before or during or the trip.
Additional accommodation and transportation expenses should a member of the party catch Covid-19.
Expenses incurred during individually-ordered quarantine.
Should your travel be rescheduled you can change the dates of cover by up to 770 days.
Not covered:
Voluntary cancellations, should you decide not to travel for whatever reason.
Government-issued travel bans, lockdowns or border closures relating to Covid-19.
Insurers AMI have begun offering some Covid-related cover since the beginning of the year.
This is largely dependent on where, and how you are travelling. Cruises, for example, continue to be excluded from many of the Covid-related inclusions.
What's covered:
If you are diagnosed with Covid-19 and must change or cancel travel plans.
Your leave is revoked due to Covid-19 as an essential worker.
Flight costs should you be denied board due to a positive Covid-19 test.
Cancellation should you be required to isolate pre-trip (requiring your travel does not involve cruise and are travelling to Australia or New Zealand).
Missed travel, cancelled activities or accommodation in Australia or New Zealand due to Covid-19.
Cancellation should a non-travelling relative fall ill with Covid-19.
Not Covered:
Government interventions or travel restrictions such as national or regional lockdowns
Voluntary change or cancellation of travel plans.
All international single trip travel insurance policies receive below benefits relating to specified Covid-19 events.
Covered:
Cancelling your trip if you have Covid-19.
Emergency medical expenses related to Covid-19.
Repatriation to help you get back home.
If you're denied boarding with a positive test for Covid-19.
A travelling companion(s) or people you live with are diagnosed with Covid-19.
Daily benefit if you are ordered to self-isolate in your holiday accommodation if you have Covid-19 (travel to Australia).
Disruption if the person you are due to stay with is diagnosed with Covid-19 (travel to Australia).
Not Covered:
Covid-19 cover in the policy does not apply in the event that any government calls for border closures.
Single trip cover for Covid-19 'Cover-More' is add on cover from travel agents including Flight Centre and travellers with a set itinerary.
What's covered:
Cancellation or amendments travel because you are diagnosed with Covid-19 before departure.
Cancellation or changes due to a non-travelling relative or business partner contracts Covid-19 in New Zealand or Australia.
Disruption if the person you are due to stay with is diagnosed with Covid-19 or told to isolate.
Disruption of travel within New Zealand and Australia, should there be an outbreak of Covid-19 the location where you are due to stay or visit.
What's not covered
Travel disruption or cancellations due to a government mandated lockdown.
Most travel outside of Australia and New Zealand, or anywhere with a 'do not travel' advisory on the MFAT or DFAT safe travel advice.
BNZ Platinum credit card International Leisure Travel Insurance, provides Covid-19 cover if you purchase a single-trip travel insurance policy from BNZ and travel overseas within a NZ Government sanctioned bubble.
Covered:
If you/travel companion or relative contract Covid-19 after purchasing policy but before travelling and have to alter or cancel plans
If you/travel companion or relative contract Covid-19 after purchasing policy but before travelling and accrue related medical costs outside of New Zealand
Early return to New Zealand in order to care for someone diagnosed with Covid-19 while you are travelling.
If you must enter managed isolation or quarantine while on your trip due to Covid-19.
Cancellation or reasonable additional travel costs if a travel provider, relative you planned to stay with or event organiser cancels or alters services due to a Covid-19 outbreak and is ordered to undertake a deep clean.
Not Covered:
Travel outside a bubble sanctioned by NZ government from the date the bubble opens.
Government directives including the pause, closure or suspension of a bubble.
Government mandate for all travellers to isolate, quarantine or lockdown upon return.
Any cruise travel.
Policies purchased after 23 March 2020 will not provide any cover for claims directly or indirectly arising from, relating to or in any way connected with Covid-19 (or any mutation or variation thereof or any related strain).
Therefore, no travel, health or expense claims related to Covid-19 will be covered.
If you have paid at least half of all prepaid travel expenses on a qualifying ANZ credit card, for a trip that is 90 days or less to and from New Zealand, you qualify for ANZ Premium Card Overseas Travel Insurance.
Whilst there is no General Exclusion for pandemic or epidemic mentioned in the Premium Cards, ANZ Eligible Cardholders should be aware that other exclusions have the potential to apply.
Contact individual providers for additional information on policies ad travel insurance cover.
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