Coronavirus – your travel insurance questions answered

(Data from WHO. Updated 25 February, 2020.)

The World Health Organisation (WHO) officially declared a global emergency on 30 January, pointing to the international spread of the Coronavirus (Covid-19) as a major concern.

Since then, the New Zealand government has ramped up its containment efforts by blocking foreign nationals travelling from or via mainland China while asking Kiwis to quarantine themselves for 14 days.

Many New Zealanders are asking questions about how their travel insurance will support them if they’re suddenly out of pocket or in harm’s way due to the epidemic.

Unfortunately, the answer isn’t exactly straightforward.

The situation is evolving rapidly, so how your insurance company responds this week might not be the same way it responds next month. The best way to find out how your policy can help is to call your insurance company directly and keep an eye on SafeTravel.

Can I get my money back with travel insurance if I cancel my trip?

It depends on a few things, including where you’re travelling, when you bought your travel insurance and what kind of policy you opted for.

If you’re travelling to China

The New Zealand government has issued the highest level of travel alert for China, urging citizens not to visit the country. As a result, you might be able to get a refund from your insurance company if you cancel your trip. However, this will depend on when you bought your policy as well as your insurer’s cut-off date.

Contact your travel insurer directly to find out when the coronavirus was recognised as a known event and whether you’ll be able to claim on your policy.

If you’re not travelling to China

Unless you have travel insurance which gives you the ability to cancel for any reason, it’s unlikely your insurance company will offer a refund if you cancel your plans solely out of fear.

Usually, a level-four travel alert, the one currently in place for China, must have been issued by the government before your insurance company will consider paying out for change of mind.

However, if you’ve decided you’d prefer to stay close to home during the outbreak, it’s worth contacting individual airlines, hotels and service providers, as they may offer refunds.

What do I do if my flights have been cancelled or delayed?

Air New Zealand has suspended its daily flight to mainland China (Shanghai) through to the end of March. However, the airline is also offering options to amend/delay travel to affected customers, so you shouldn’t be out of pocket for the cost of your ticket. Keep up to date with Air New Zealand’s travel alerts here.

New Zealand has also banned non-citizens and non-residents from entering New Zealand on flights that have either come directly from China or have passed through the country on a connecting flight – your travel insurance might cover these costs depending on when you bought your policy.

Again, it’s worth communicating directly with your airline to see what help is on offer. Alternatively, if you bought your ticket with a credit card, you might be able to lodge a dispute for cancelled or unfulfilled services.

Will travel insurance cover me for Coronavirus outside of China?

If you bought travel insurance before your insurer recognised the Coronavirus as a known event, you’ll probably be covered for any medical expenses incurred while you’re on holiday. However, if you buy travel insurance after your insurer’s cut-off date, you might not be covered.

Again, insurance companies have different cut-off dates in relation to the Coronavirus, so it’s worth contacting your insurer directly to find out exactly how your policy would help you.

Can I still travel to China?

Technically, yes. If you desperately need to travel to China, you can go if you can find a way to get there. However, it’s highly unlikely you’ll be able to secure travel insurance from any general providers to cover you while you’re away. If you already have travel insurance from a general provider, it will be void because of the level-four travel alert. If you decide to go, just keep in mind that it’s at your own risk.

What are epidemic and pandemic exclusions in travel insurance?

Often, general travel insurance policies have an exclusion which restricts what you can claim in relation to epidemics or pandemics. This means that, even if you bought your policy before your insurance company’s cut-off date, you might not be covered in the way you think you are.

If your insurance company has an exclusion, you’ll be able to find it in the product disclosure statement (PDS). Alternatively, you can call your insurer directly to find out exactly how you’re covered. In situations like this, insurers usually assess on a case-by-case basis, so it’s always worth communicating with them directly.