Am I covered by my Australian travel insurance?

The coronavirus has had an unprecedented impact on global travel over the last few years, and the answer to this still isn’t as straightforward as one might think. When it comes to covering Coronavirus related expenses, not all insurers are made equal. We explore Coronavirus, what travel insurance covers covid-19 related expenses, and how you may be able to recover your costs should coronavirus disrupt your trip.

What is the coronavirus?

Coronaviruses (CoV) are a large family of viruses causing illnesses ranging from a common cold to more severe illness such as pneumonia and Severe Acute Respiratory Syndrome (SARS-CoV). The novel coronavirus (initially known as 2019-nCoV, now known as SARS-CoV-2) is a strain that had not been previously identified in humans, prior to 2020. The disease caused by the virus has been named COVID-19 by the World Health Organization. According to the Australian Government Department of Health, some people recover easily, while others may get very sick very quickly. The best way to prevent illness is to keep on top of your vaccinations and maintain good hygiene.

There is a lot of information and resources in relation to the coronavirus, which includes a lot of false information which can spread faster than the virus. We recommend authoritative resources such as the World Health Organization (WHO), which provides advice to countries and individuals on measures to protect health and prevent the spread of this outbreak. They answer frequently asked questions about the coronavirus and bust many of the myths that can take hold. More resources for the Australian public, health professionals, and industry are available from the Department of Health.

My travel has been disrupted - am I covered?

Unsurprisingly, confusion on travel cover spread along with the coronavirus, and the answer to this question will vary by provider and policy. Insurers are catching up and more are covering at least the basic costs which may arise due to coronavirus.
Travel insurance may cover you for:

• Medical expenses related to the treatment of covid-19
• The cost of rearranging your trip if you, your travel companion or host contracts covid-19.
• The cost of extending your trip if you are diagnosed while away and can’t travel home.
• Evacuation or repatriation if you contract Covid-19.

While a lot of policies will cover these basics (be sure to check your specific policy wording), some insurers will offer even more protection on their policies. These extras can include cover if:

• Your accommodation is suddenly closed down
• You are hospitalised with covid-19 and have to cancel your trip as a result
• You are denied boarding onto your transport due to covid-19 symptoms
• A prepaid activity in Australia or New Zealand is canceled or shut down
• You incur extra child care costs due to being ill with covid-19
• Pet care costs rise due to extending your trip because of infection.
• Your close relative is hospitalised from or dies of covid during your trip and you have to return home. Doing a quick online comparison with our easy tool will help you discover the best insurers, at the best price points for your needs.

What’s not covered?

The key point is to never travel when you know you have coronavirus, if you do this any claims you make will be rejected. Insurers all handle coronavirus slightly differently, and some will only provide very basic cover, however there are some things most insurers will not cover you for:

• Covid related claims too close to your travel date will not be accepted, for some insurers this is from 21 days before travel, for others 72 hours so be sure to buy your travel insurance as soon as you book your trip.
• Costs related to cancellation due to diagnosis with covid-19 prior to travel.
• Travelling against advice, be that of a doctor who deems you unfit to travel, or that of the Australian government. If your destination is deemed unsafe, levels 3 or 4, by Smartraveller, your cover will not be effective.
• The cost of PCR or antigen tests, where they are mandated in order to be eligible to travel.
• Costs related to a self isolation or quarantine period which you were aware of prior to travel.
• Cancellation costs due to a government enforced border closure or lockdown.

Who covers what?

Concerned about catching the coronavirus and want to cancel?

Whilst keeping yourself out of harm’s way sounds sensible, it’s important to note that ‘fear of getting sick’ or ‘change of mind’ are not covered reasons to cancel under a standard travel insurance policy. You would be in a better position to recover any costs with providers if the cancellations are outside of your control. For example, if your airline is no longer flying to a particular destination and cancels your flight you’re likely to be entitled to a full refund. If you cancel your flight because you n longer want to go, you’ll probably be left out-of-pocket. It’s worth contacting individual airlines, hotels and service providers, as some may offer options to change or cancel bookings directly.

What if I catch the coronavirus overseas?

At last some good news, on the back of your really bad news. If you were to contract the coronavirus overseas, most policies will provide access to a 24-hour emergency assistance team and will cover you medically, provided you purchased your policy before any published cut-off dates and you were not travelling against government advice.

If you need urgent consular assistance, contact the Consular Emergency Centre on +61 2 6261 3305, text or WhatsApp +61 420 269 080, or use Smartraveller’s crisis contact form.

Other ways to recover costs

If your travel plans have been affected by the coronavirus, there are steps that you can take to recover your pre-paid expenses. In the event that your travel insurance policy does provide cover, you must do all that you can to reduce the cost of your claim, so here’s some tips.

• Contact your booking agent: If you booked through a travel agent or a third-party website, you should contact your booking agent directly regarding the best option for cancelling or altering your trip. Some booking agents may waive cancellation or amendment fees, or even offer travel credits to be used within 12 months, if your cancellation is covid related.
• Contact your airline directly: Some airlines may waive the usual penalties for rescheduling or cancelling flights for customers who have had to change plans due to Coronavirus, especially if do not travel notices have been issued for the destination. When you purchase a flight, the airline is responsible for getting you to your destination. All your usual consumer rights apply when you purchase domestic flights and international flights departing Australia.
• Contact your accommodation provider directly: Many hotels are flexible with their booking amendments and cancellations. If you are concerned about the coronavirus it is advisable to book hotels offering free cancellation. Whether you have booked this option or not though, it is always worth giving your accommodation provider a call to see if they will work with you to recoup some of your costs when cancelling due to covid.
• Speak with your cruise company: With many infamous outbreaks of Coronavirus onboard cruise ships, cruise lines have taken the coronavirus very seriously. They implemented their own precautionary measures and their policies on the situation are ever evolving, with requirements for boarding just now beginning to ease. Carnival Cruises for example have removed their requirement for pre-cruise testing and vaccination certificates as of Feb 2024. It is still not permitted to travel if you have tested positive for covid however, so best to contact your cruise company and see what costs can be refunded in this case.
• Know your rights: Consumer rights apply to travel as much as they do to every other purchase, so it’s important to know what your rights are, as an Australian consumer. Consult the ACCC for information on when you may be due compensation for delays or cancellations caused by covid.
• Credit card purchase protection: If you booked your travel with your credit card, you might be able to lodge a dispute for cancelled or unfulfilled services. Many credit card brands include purchase protection benefits, which protect your purchased items for anywhere from 30 days to a year after purchase, provided that you paid for them on your credit card.

Coronavirus travel restrictions & disruptions

As one would expect with the rapid spread of a virus that is invisible and unpredictable, the coronavirus has caused public panic and widespread travel concerns. Just weeks after airlines cut flights to China over the coronavirus outbreak, airlines cut flights elsewhere and many tours and travel events were suddenly cancelled. In particular, for anyone was planning to travel across Asia, travel disruptions were unavoidable. Airlines, booking agents, tour operators and travel insurers all reported that even for countries without restrictions in place, large numbers of anxious customers simply wanted to avoid the region.

While travel disruption has now, thankfully, greatly reduced, there are still pockets of the world with high case numbers, and travel restrictions. As travel restrictions can change rapidly, travellers should be prepared for new restrictions to be put in effect with little advance notice. We advise Australians that are travelling to sign up to the Australian Department of Foreign Affairs and Trade’s (DFAT) Smartraveller website to keep up-to-date with overseas travel information.

Timeline of Coronavirus (COVID-19) outbreak

The summary below demonstrates just how quickly stringent travel restrictions began to play-out.

• On 23 January, Wuhan went into lockdown with flights and trains blocked and public transport halted. DFAT upgraded its warning to ‘Do Not Travel’ to Wuhan. The city of Wuhan in central Hubei province has since been quarantined, and nearly half of China is currently living ‘under travel restrictions’ with travel limitations of varying degrees enforced in provinces and cities across the country.
• On 29 January, the Smartraveller website raised the travel warning level to ‘Reconsider your need to travel’ to mainland China, which was later upgraded to ‘Do Not Travel’ on 2 February. Many airlines have temporarily reduced or stopped flights to China. You should contact your airline to confirm your travel arrangements.
• On 31 January, the WHO declares the new coronavirus outbreak a global health emergency of international concern.
• A case of the novel coronavirus was confirmed in Cambodia and body temperature screenings were put in place at international airports.
• On 2 February, the US began implementing stringent travel restrictions that include temporarily denying entry to foreign nationals who visited China in the 14 days prior to their arrival in the US.
• On 5 February, after a two-week trip to Southeast Asia, more than 3,600 passengers aboard the Diamond Princess cruise began their 14-day quarantine aboard the cruise ship docked in Yokohama, Japan.
• On 5 February, Vietnam introduced stricter measures to prevent the spread of novel coronavirus. If you’ve travelled to China, including transit, in the last 14 days, you won’t be allowed to enter. Expect health screening at entry points.
• On February 7, Hong Kong introduced additional measures to prevent the spread of the novel coronavirus. From 8 February, a 14-day mandatory quarantine will be imposed on anyone entering Hong Kong from mainland China.
• On February 9, Qantas suspended its two direct services between mainland China and Australia (Sydney-Beijing and Sydney-Shanghai) from 9 February until 29 March 2020, due to the entry restrictions imposed by countries including Singapore and the United States.