OVER-60s WARNED THEY MAY NOT BE ABLE TO HOLIDAY OVERSEAS FOR A YEAR

The Telegraph 9 May 2020 - by Sam Meadows

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Coronavirus could curtail the holiday plans of the over-60s for a year, experts 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.

Government advice currently restricts travel abroad but there are fears that even after this changes travellers will be put off booking holidays because of a lack of cover.

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.

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“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 and that travel was likely to be concentrated domestically for the next 18 months.

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 WHO declares the pandemic over you won’t be covered for cancellation in the event Covid-19 causes your holiday plans to change.”

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Insurance will still pay out for medical claims arising from coronavirus, insurers have said.

If a trip is cancelled by the provider, as has been the case during the current restrictions, 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.

Bookings made before the pandemic took hold should still be covered by travel insurance.

Martyn James, of consumer complaints service Resolver, said insurers will need to be reasonable about covering disruption caused by pandemics in the future.

He added: “When the Icelandic volcano grounded planes across half the world, most insurers paid out. But almost immediately volcanoes became exclusions in contracts. I don't think this is fair.

“While I wouldn't expect insurers to pay every pandemic case in the future, they need to be reasonable and work with airlines and holiday companies on a standard solution for future issues.”

The travel industry is in discussions with insurers to try and make sure there is adequate cover available for holidaymakers when restrictions are lifted.

A spokesman for the Association of British Insurers (ABI), the trade body, said: “Insurers know that insurance cover for Covid-19 will be important for restoring consumers with the confidence to travel again and so will look to extend cover again where they can, when they can.”

She said many insurers have changed their policy wording but that this is a “temporary position that insurers will continue to review”.

She added: “The Covid-19 exclusions in place will vary from insurer to insurer but you will still be covered for other medical emergencies.”