Travel insurers may not pay out for passengers caught by coronavirus
Tuesday, 28 January 2020
Travel insurers may not pay out for coronavirus-related claims made after the disease became public knowledge.
House of Travel commercial director Brent Thomas said acceptance of claims from people who need medical treatment for the virus or are caught out by travel restrictions may hinge on when insurance cover was taken out.
Based on last year's figures, Thomas estimated about 20,000 New Zealand residents would return from China in the three weeks around Chinese New Year, with the most of them having gone there to visit friends and family.
He said Kiwis stranded in Chinese cities locked down to prevent spread of the disease should still approach their insurer about claiming for accommodation costs or flight changes.
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'There will definitely be some people who will be caught up in these restrictions in some shape or form.'
According to the Southern Cross Healthcare travel insurance website, customers who took out policies before 1pm on January 21 this year could submit claims for assessment if their travel was impacted by the virus.
After that time 'we would consider that you would have been aware of the outbreak, which has been widely reported in global media.
'If your travel arrangements aren't affected by the outbreak, but you have changed your mind or are nervous about travelling, there is no provision to claim under your policy.'
The New Zealand government Safetravel website advises against visiting China's Hubei province, and it warns travel restrictions could be extended to other areas of China with little notice, preventing those already there from leaving.
The total number of coronavirus deaths has climbed to 106, China's National Health Commission said on Tuesday as it confirmed the number of cases in mainland China had soared to 4515, from 2744 on Monday.
Cases of infection have been reported throughout Asia and Australia, as well as in the US, France and Canada. Germany has also confirmed its first case. WHO has so far backed off declaring a global health emergency.
If it did so, Thomas said he understood insurers would refuse to provide travel cover from that date for claims arising from the virus.
'If it's declared a pandemic today, you couldn't buy insurance to cover your trip later in February because it's a known and a notified event.'
Even if travellers affected by coronavirus were deemed eligible for insurance payments, Thomas said claims had to be reasonable.
'You can't stay a 3.5 star hotel and then move to a 5 star hotel. People have to realise it's not a limitless payment, it's about what's fair and reasonable.'