The COVID-19 lockdowns now feel like a distant memory to many of us, but from Hantavirus outbreaks on cruises to Ebola disease in Africa, news of viruses still sets travellers’ nerves on edge.
COVID-19 is no longer considered a global health emergency by the World Health Organisation, but the chance of experiencing a pandemic similar to COVID-19 in a lifetime is estimated to be 38%. So will travel insurance protect your holiday plans if a future virus morphs into a pandemic?
Does travel insurance cover pandemics or epidemics?
More than half of the travel insurance policies that CHOICE compares exclude cover for claims that arise as a result of a pandemic or epidemic. That means medical costs, cancellation costs, or additional expenses to rearrange your trip simply won’t be covered by those insurers.
Almost 60% of single trip policies in the CHOICE travel insurance comparison exclude cover for pandemic.
The good news is that quite a few policies still cover medical expenses if you contract a pandemic on your travels. However just because they cover medical expenses, doesn’t mean they cover cancellation or additional expenses to rearrange your trip.
An epidemic is an unusually large or unexpected outbreak of disease in a geographic location.
A pandemic is an epidemic that has spread throughout a whole country or across continents.
Does travel insurance cover medical expenses for pandemics?
Policies that cover medical expenses for a pandemic will pay for emergency medical and hospital costs, and medically assisted repatriation to Australia, if deemed necessary. Most policies that cover pandemics provide unlimited cover for medical expenses.
Does travel insurance cover cancellation due to a pandemic?
Only seventeen policies cover additional expenses, and five policies cover cancellation claims that arise as a result of a pandemic. Even then, the insurer may only cover it if you actually catch it yourself, and they may still exclude specific viruses, such as avian influenza.
Which travel insurers will cover pandemics or epidemics?
Insurers such as Allianz, Travel Insurance Direct and Cover-More cover pandemics or epidemics for medical costs, but Travel Insurance Direct and Cover-More exclude cover for cancellation costs incurred due to a pandemic.
The table below shows which international single-trip travel insurance policies cover medical and cancellation costs if you’re diagnosed with an illness that’s classified as a pandemic or epidemic by the World Health Organisation while overseas. Bear in mind that if the pandemic or epidemic is classed as a “known event” before you buy the policy, then cover will probably be excluded.
When an event becomes “known” is a grey area, but generally it’s when it’s publicised in the media or on official government websites. So check the Smartraveller information for your destination before you go.
CHOICE tip: Regardless of which policy you have, you should still contact your travel insurer and lodge a claim. Mention the specific expense you’re claiming for such as medical expenses or a cancelled flight. But don’t speculate on the reason for the claim. For example let them know you’re claiming medical expenses because you caught a disease, and let the insurer figure out if your claim is covered.
Southern Cross Travel Insurance (SCTI) – Medical Only
Yes
No
No
Tick Travel Insurance – Basic
No
No
No
Tick Travel Insurance – Budget
No
No
No
Tick Travel Insurance – Standard
No
No
No
Tick Travel Insurance – Top
No
No
No
Travel Insurance Direct – Basics
Yes
No
No
Travel Insurance Direct – The Works
Yes
No
No
Virgin Australia – Travel Safe International
Yes
Yes
No
Virgin Australia – Travel Safe Plus International
Yes
Yes
No
Webjet – Travel Safe International
Yes
Yes
No
Webjet – Travel Safe Plus International
Yes
Yes
No
Wise and Silent – Covid Essentials
Yes
No
No
Wise and Silent – Discovery
Yes
No
No
World Nomads – Explorer
Yes
No
No
World Nomads – Standard
Yes
No
No
World2Cover – Basics
No
No
No
World2Cover – Essentials
No
No
No
World2Cover – Top
No
No
No
Worldcare – Comprehensive
Yes
Yes *
Yes *
Worldcare – Essential
Yes
Yes *
Yes *
Zoom – Comprehensive
No
No
No
Zoom – Medical Only
No
No
No
* If the policyholder is diagnosed with a pandemic or epidemic illness.
** Excluding avian influenza.
Can you get travel insurance to cover COVID-19?
Most travel insurance policies will provide limited cover if you or your travelling companion get COVID-19. Cover for medical expenses are usually unlimited. There are also often limited costs covered for cancellation and additional expenses if you contract COVID-19.
Does travel insurance cover COVID-19 on a cruise?
Travel insurance policies that offer cruise cover will often (but not always) cover medical costs if you contract COVID-19. Some of these policies will also cover you if you need to cancel your trip due to COVID-19, or if a non-travelling relative in Australia has contracted COVID-19.
If you’re going on a cruise, you’ll usually have to pay an extra fee to add cruise cover to your travel insurance, or buy a separate cruise-specific policy. Cover for COVID-19 is restricted, so check your PDS for details.
Your travel insurer declined your claim. Now what?
Read your travel insurance PDS. In the first instance, it’s up to you as the policyholder to establish that you have a valid claim under the policy terms and conditions. That generally means handing in lots of documentation.
Then it’s up to the insurer to decide if your claim is valid and that there are no policy exclusions that should be applied.
If you disagree with the insurer’s decision regarding your claim, raise a complaint via their internal dispute resolution service.
If you don’t get a satisfactory result from the insurer’s internal dispute resolution, escalate your complaint to AFCA, which is the external ombudsman for the insurance industry.
Jodi Bird is the Managing Financial Content Editor at CHOICE. Previously at CHOICE, he worked as Travel project lead and as a Finance specialist.
Jodi has extensive experience in financial services, having worked with major banks such as CBA, Westpac and Credit Suisse. He enjoys breaking down complex consumer decisions into easy to understand steps and holding companies to account for failing their customers. He is regularly called upon for expert commentary by major broadcasters such as the ABC, SBS, and Channels 7, 9, and 10.
Jodi has a Bachelor of Commerce majoring in Economics from the University of Wollongong. He is RG146 compliance certified to provide general advice for General Insurance and is a Responsible Manager on CHOICE's Australian Financial Services License. LinkedIn
Jodi Bird is the Managing Financial Content Editor at CHOICE. Previously at CHOICE, he worked as Travel project lead and as a Finance specialist.
Jodi has extensive experience in financial services, having worked with major banks such as CBA, Westpac and Credit Suisse. He enjoys breaking down complex consumer decisions into easy to understand steps and holding companies to account for failing their customers. He is regularly called upon for expert commentary by major broadcasters such as the ABC, SBS, and Channels 7, 9, and 10.
Jodi has a Bachelor of Commerce majoring in Economics from the University of Wollongong. He is RG146 compliance certified to provide general advice for General Insurance and is a Responsible Manager on CHOICE's Australian Financial Services License. LinkedIn
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