One of many things that Covid-19 has thrown a spanner in the works of is Travel Insurance. Travel Insurance like many other policies require the completion of a renewal declaration when your policy falls due. You then estimate the anticipated amount of travel you will undertake for the next 12 months.
As we know, in a landscape that seems to be changing every day, it is extremely difficult to know what will be happening next week, let alone the next 12 months. Especially when it comes to travelling.
Most Travel Insurers anticipate that overseas travel warnings will not be downgraded this year and possibly not for most of 2021. More importantly, Travel Insurance purchased after March 2020 will have no cover for Covid-19 related losses.
If you have booked flights to a Country where there are currently no restrictions in place, but when it comes time to fly, the Government places a travel warning and you decide to cancel, there will be no cover for any loss related to the cancellation.
If your flights were booked prior to the Covid-19 pandemic and your flights must be cancelled due to travel restrictions, you may still have cover. However, Insurers recommend contacting your travel provider in the first instance as many travel providers are being flexible in relation to amending travel dates and some will provide travel credits.
It’s also important to note, even if the Government provides you an exemption for essential travel but DFAT have issued a “Do not Travel” warning, you will not be covered for any associated losses.
How do I estimate what travel I will undertake when renewing my Corporate Travel Policy?
We would suggest having a chat to your Planned Cover Account Manager in the first instance to ascertain what travel is still highly likely, somewhat still likely and highly unlikely. As Insurers all have different guidelines, your Account Manager can assist by checking with your Insurer and advising the best way to estimate travel accordingly.
Some Insurers are offering to renew on a deposit premium basis which will afford you a minimum of trips. For example, they might charge a minimum of $500 plus charges and cover a certain number of Intrastate, Interstate and International Travel within that cost. If your travel looks like exceeding the nominated trips allowed, you would then advise your Insurer accordingly.
It is interesting to note that Insurers that previously afforded direct online quotations are no longer providing online travel quotes. Messages such as “Travel quotes temporarily unavailable” or “temporarily ceasing sales of Travel Insurance” now seem to be commonplace.
The safest options in these everchanging times is to delay all future non-essential travel until the situation is clearer, and safer, especially if travelling overseas.
Kylie McGrath State Manager WA