What Does Insurance Cover For Trip Cancellation? Due to Corona
Trip Cancellation Insurance
Does my trip cancellation insurance cover corona virus? No. Epidemics are expressly excluded and “are in the ‘general
exclusions’ section of a large majority of insurers,” explains Victor Lopez, head of insurers at Restorative.
Travel cancellation insurance covers all cancellation expenses before the date of departure arrives, but “as long as it is due to a greater cause “.
What Circumstances are the Major Cause?
Among the most common are: serious illness of the insured or a first-degree relative, accident, death, work
reasons such as layoffs, an extension of the contract, incorporation to a new job, or call of an official body.
In this case, as it is a cancellation of the trip “for external reasons “, it is not subject to insurance coverage.
For the travel insurance to cover the cancellation for a reason such as a corona virus, “you would have to have
previously contracted the clause of ‘declaration of catastrophic zone or epidemic at the place of residence of
the insured or the destination of the trip’, and that this is not among the exclusions”, clarifies Lopez.
But to qualify for this coverage, the destination would have to have been officially declared an “epidemic or catastrophic zone”.
What If I have Free Withdrawal Insurance?
There is a case in which you would have covered the cancellation of the trip: to have contracted the insurance of
free withdrawal, with which the trip can be canceled ” without just cause, just because,” says the expert.
But it is a rare type of insurance, not offered by all insurers and whose cost is high.
Does the Airline Cover the Cancellation of the Trip?
If you have contracted a trip and you cannot do it because a third party cancels it for certain circumstances,
these are the consequences it has on your rights:
The spread of the virus can cause the destination airport to close, as has happened in several Chinese cities.
This circumstance is not accepted as a reason for cancellation,
as it is not contemplated in the general conditions as a reason for the insured to cancel their trip.
If it is the airlines that have decided to stop operating on a route (for example, to China),
they must offer alternatives such as reimbursing the ticket, changing the date of the flight to the same destination or
modifying the destination without having contracted previous cancellation insurance with the airline.
If it is the country that restricts air traffic, the passenger would not have the right to claim expenses or compensation,
but “he would receive a refund of the ticket from the airline as it is a cause of force majeure.”
Remember! Even if you have purchased the plane ticket through an intermediary website,
the conditions and assumptions are the same as if you had purchased it directly from the company or company providing the service.
Corona Virus and Travel: Do I Buy a Ticket or Wait?
Due to the increase in new cases of corona virus,
the wisest course would be to follow the official recommendations of the Ministry of Foreign Affairs through its website.
There is no prohibition for you to buy tickets, but the most
advisable thing would be to “have and read in detail the cancellation insurance,
as well as what clauses they include to ensure 100% that, in
the event of not going finally, you will not lose the money”, indicates Victor Lopez.
Corona Virus and Health Insurance
A probable contagion also raises doubts regarding the coverage that, in this case, would have health or travel insurance.
In case of illness in the US, Social Security takes over,
but you can also use your insurance because, as explained by UNESPA (Business Association of Insurance),
the insured who currently go to a private health center for
medical staff of the insurers “are being attended with total normality”.
They also emphasize that private insurance collaborates to control the spread of the corona virus in Spain.
What if you get sick abroad while on vacation or a work trip?
As for health care, in addition to taking into account what your insurance covers or not,
you have to “analyze the type of health coverage you hire.”
And it is that, in case of falling ill in the destination country, you must make sure that care and hospitalization would be covered,
From UNESPA they point out that the insurance pays for the medical care received by the insured who are infected by the corona virus during a trip.
Another possibility is to quarantine your hotel.
The stay in that country and the expenses would be covered and “The customer would not have to bear those expenses
because he will not be in a hotel the head of law and services of the CECU, Cesar Diaz, states of his own free will.
And if the managers of the hotel consider it appropriate,
“they will be the ones who have to take the pertinent legal actions before whoever they consider responsible.
Also, it must be taken into account, as Victor Lopez comments, that in cases with an epidemic declaration,
the health management of this disease is always.
“under the direction of the government of the country where it has been declared.”
Therefore, it will be who will determine how to manage it,
what are the possible quarantine periods, in which medical center will the person be admitted,