Starting to travel again?

Starting to travel again?

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2022 January 12

If you are thinking about travelling this year make sure that you know what you are covered for - with Covid-19 still having an impact on our movements domestically and internationally.

Covid – 19 has impacted business and personal travel since early 2020.

With recent Government announcements outlining the probable pathway to opening up New Zealand’s borders, we expect to see an increase in business and personal travel through 2022.

As overseas trips are planned questions will arise about how travel insurance will respond. So, it is worth keeping the following in mind:

  • Travel insurance is not a standard policy and there are differences in coverage and approach.
  • In general, travel policies will not cover loss of deposits, cancellation, or travel disruption from a “Foreseen” circumstance. So, cancellation due to a travel ban or existing Government advisory in place when booking may not be covered.
  • Some insurers may provide for cancellation if it is due to the traveller cancelling because they or a family member etc caught Covid -19 before travel. 
  • No policy will cover cancellation costs due to the traveller deciding not to travel, referred to as “disinclination to travel”.
  • Most policies will provide for medical costs and expenses incurred overseas as a result of catching Covid -19. Some may provide for emergency medical repatriation as a result of catching Covid -19.
  • No policy provides cover where travel has been taken against medical advice.
  • Cover for quarantine costs may be included if the quarantine was imposed suddenly. They will not be covered where quarantine is a known requirement, for example, returning to New Zealand
  • If you do not have a group scheme make sure travel insurance is arranged when you pay for your trip. That way you will have coverage in place for loss of deposits etc for things that might go wrong before you head overseas.

As travel overseas opens up once more, clients need to understand the extent and response of travel insurance to Covid – 19 and pandemics/epidemics in general. 

Many clients have allowed their travel insurance to lapse because there was no travel to insure. Now is the time to consider if your business is likely to start international travel once more and whether to arrange a new group policy.

Please contact your ICIB broker to discuss your needs.