Does Travel Insurance Cover Coronavirus?

People travelling in India often question the need to avail travel insurance. Afterall, being in one’s country gives a sense of comfort because of which they tend to give it a miss. However, irrespective of whether you are travelling in India or abroad, travel insurance is a necessity. Read on to know why it’s essential to avail this type of insurance even while you are embarking on a trip in India.

Coronavirus or COVID-19 disease has had a global impact. This pandemic has created apprehensiveness among those who are travelling but do not know whether their cancellations or delays will be refunded.

Also, many do not have travel insurance and are in real darkness over the fate of their funds in case of cancellations/delays. Also, many are concerned over coverage in case they fall ill during the travel. These trepidations are widespread and have left so many in restless situations. The following points might help in resolving this anxiety.

Refund on Cancellation/Rescheduling Due to Coronavirus

People can be assured that if they have to cancel or postpone their trip due to COVID-19, then their travel insurance will get them the full refund because in India cancellations/delays due to infectious illnesses are covered under travel insurance.

Thus, the change in travel plans for safety against the pandemic will not cost the insured anything. However, it has to be noted that if the travel insurance has been bought after the travel advisory issued by the government due to this disease, the refund will not be offered. This is because most of the insurers are excluding Coronavirus from their list of inclusions. However, the existing travel policies will cover the losses. The coverage will be offered in line with the terms and conditions of the policy.

No Travel Insurance

In case the person does not have the travel insurance, the refund and extent of the refund will ultimately depend upon the policies of the individual airlines. While many airlines are offering a complete refund, many are offering only partial, and some are giving no refunds.

Some airlines are offering free rescheduling of the travel dates. Also, the refund will be limited only to the ticket. There will be no loss coverage on the hotel bookings or other arrangements.

Falling Sick During Travel

While the government has advised to reschedule or cancel the travel plans, some people might go ahead with their travel arrangements due to individual reasons. In such cases, if the insured person falls sick due to COVID-19 while travelling, then the travel insurance will cover the treatment expenditure and also the cost of being hospitalized.

This applies to both domestic and foreign travellers. Meanwhile, it should be noted that the insurance should have been purchased before the imposition of travel restrictions by the government. Thus, it can be concluded that those with travel insurance policy will get relief in terms of not only the coverage of losses but also hospitalization/medical expenses in case the insured falls prey to this disease during the travel.


DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.