Border restrictions have finally begun to ease across the globe and Kiwis are excited to get back to international traveling. In fact, the majority of New Zealanders plan to travel over the next 2 years according to recent travel insurance statistics.
As the interest in international travel grows, insurance providers have reported increasing demand for international travel policies in the past few months. However the impacts of the pandemic are far from over, and travellers now must consider a number of other factors before departing, such as COVID-19 regulations and requirements by airlines, in transit and at destination countries. As such, having appropriate travel insurance in place is essential.
What is covered by travel insurance?
There are a wide range of Travel Insurance companies providing a variety of different policy options. Travellers should consider the inclusions of the policy and look for comprehensive cover that will protect them from the range of accidents that can happen while travelling. If something goes wrong, you want to ensure you are covered for medical or legal bills, as well as other expenses incurred.
Comprehensive Travel insurance covers medical costs and personal liability and may also provide compensation if luggage is lost, property is stolen, or in the event that the booking has to be cancelled of changed.
Whatever type of policy you purchase, it’s important to be aware that travel insurance will not cover every eventuality.
What may be excluded in a travel insurance policy?
While the specifics will vary from policy to policy, there are certain exclusions that typically apply to travel insurance policies. For example, your travel insurance may not provide cover for the following:
Medical Expenses
- The policyholder goes to a private hospital as opposed to a public hospital
- The injury or illness was the result of a pre-existing medical condition
- Injuries were sustained when the policyholder was under the influence of alcohol or drugs
- The policyholder does not treat their injury or illness while travelling, but instead waits until they have returned to New Zealand
- The purpose of the trip is to obtain medical or dental treatment
Personal Belongings
- Personal items were lost or stolen as a result of being left unattended in a public place, such as a train station or airport or hotel lobby
- Valuable items such as jewellery were lost or damaged when stowed in the cargo hold of a plane, ship, train or bus
- Personal belongings were lost or stolen after being kept overnight in a hire car
Bookings
- The policyholder misses their flight as a result of late check in or not obtaining the necessary visas or documents for the trip
- The policyholder knows of a potential risk that would impact the journey before taking out cover
- A tour is cancelled due to not having enough people
- The airline or tour provider goes bankrupt
Personal Liability
- The policyholder recklessly or purposefully causes damage to someone else’s property
- The policyholder has to pay an enforced fine
Travel insurance and the COVID-19 Pandemic
In order to address the additional issues caused by the pandemic, several insurance providers have included COVID-19-related cover in their policies to cover additional costs in relation to COVID-19. However, as with all types of insurance, the specifics of the cover varies between insurance providers, therefore, it’s important to consider the policy before purchase.
Be aware COVID-19 cover is limited and not all costs will be covered. For example, cancellation of travel as a result of a government directive, such as lockdowns and border closures is typically not covered. In addition, cancellations as a result of fear of contracting the virus are unlikely to be covered.
For more information and assistance on securing the most appropriate policy to meet your travel requirements, get in touch with High Street Insurance Brokers.
