Over-60s face battle for travel insurance
CORONAVIRUS could curtail the holiday plans of the over-60s for a year, experts have warned, after travel insurers changed the wording of policies to exclude it.
Many firms stopped selling travel insurance in March as the pandemic took hold. The policies are now being reintroduced, but with changed wording that specifically excludes claims relating to Covid-19 as it is now a “known event”.
This means that, despite travel agents reporting demand for holidays in 2021, any trips booked now are unlikely to be covered by insurance if the holidaymaker changes their mind.
Experts said this would be a particular problem for those over the age of 60 who are most at risk from the virus and most likely to decide to cancel if there was any kind of second wave.
Insurers said the current exclusions are temporary, but travel experts fear the situation could last until a virus vaccine is widely distributed, which could be a year away.
Paul Charles, of travel consultancy The PC Agency, said: “Anyone over the age of 60 will be reluctant to travel until there is a vaccine in mass production, at least one year away. They will be nervous about being in a country where the virus could re-emerge, overwhelming healthcare systems and, possibly, leading to borders being closed at short notice.”
He said any insurance which does cover the virus is likely to be very expensive.
Brian Brown, of Defaqto, the analysts, said that even after the pandemic is over it is “very unlikely that many, if any, travel insurers will offer cover for coronavirus or similar events in the future”.
He added: “Until the World Health Organisation ( WHO) declares the pan
‘Anyone over the age of 60 will be reluctant to travel until there is a vaccine in mass production’
demic over you won’t be covered for cancellation in the event Covid-19 causes your holiday plans to change.”
Insurance will still pay out for medical claims arising from coronavirus, insurers have said. If a trip is cancelled by the provider, travellers are entitled to a refund, but if the individual chooses to cancel because they do not feel comfortable travelling they will be unlikely to get their money back.
A spokesman for the Association of British Insurers (ABI), the trade body, said: “The Covid-19 exclusions in place will vary from insurer to insurer, but you will still be covered for other medical emergencies.”