Travel is opening up, but the COVID-19 pandemic continues to loom over us. Apart from the obvious health-related risks, the uncertainty also extends to travel disruptions caused by sudden restrictions in destinations and or airports. Protocols differ depending on your mode of transportation, how long you plan to be away, and what destinations are on your itinerary. There’s one full-proof way to reduce some of the anxiety—be well-prepared before you go.
Even fully vaccinated travellers may want to safeguard against Covid-related problems when they travel, and travel insurance is the way to go. Not all travel insurance plans cover Covid-related problems. So if you’re planning overseas travel you’ll want to look for a plan that covers Covid-related trip cancellation and medical expenses.
While travellers gear up to expect the unforeseen in a post-Covid world, insurance companies too, have taken to the new reality. Most existing covers, medical or non-medical, encapsulate risks arising from Covid-related conditions. A majority of insurance policies have explicitly included Covid situations in their policy wordings in a bid to eliminate confusion to the retail buyer. The basic travel insurance covers can be divided into medical and non-medical covers. The medical cover includes medical expenses on sickness or accident in destinations, accidental death, cash on hospitalisation, personal liability and even dental treatment, excluding pre-existing conditions. The non-medical covers typically cover baggage related delays or loss, lost passports, hotel/airline cancellations or delays and repatriation of mortal remains.
What you need to look for
Announced in early April 2020 - insurance plans now comprehensively cover risks specific to Covid including:
• Upon being diagnosed with Covid-19 during a trip, under accident and sickness clause, medical expenses should be covered up to the sum insured. Note that this can be claimed only under hospitalisation for most policies. Out-patient treatment coverage is offered only in select plans. Care Health Insurance, for instance, offers it.
• The other two Covid related risks arise from either trip cancellation or curtailment. Look for travel insurance policies with Covid cover reimburse ‘non-refundable unused service costs’, including hotel or airline bookings when trips are cancelled due to Covid.
• Check to see if the financial loss is covered in case the insured travel companion or immediate family member is diagnosed with Covid-19 before the trip. If bookings done before being diagnosed with Covid are reimbursed up to a certain limit of the sum insured.
• Some insurance companies like Tata AIG also cover additional accommodation and travel expenses incurred due to trip interruption, subject to the sum insured limit.
• HDFC Ergo travel insurance also covers the cost for hotel accommodation to isolate or quarantine, if one is tested positive during travels.
• While most policies allow for the automatic extension of the policy period if a lockdown is imposed in destination regions, ICICI Lombard covers additional lodging and boarding expenses on account of a companion being hospitalized as well.
• Some plans allow for continued treatment even after the policy expires. Tata AIG plans, for instance, offers coverage to the date of discharge or 60 days post expiry of the policy.
How much will it cost?
Like traditional travel insurance, pricing predominantly depends on trip duration, destination, frequency of travel with the destination (multi-trip or single trip) and age of the insured. Say, for a 25- year old travelling to Europe or the USA for 30 days today, the premiums range from ₹2,500 to ₹4,000 (sourced from Policybazaar.com) for a sum insured of US$ 100,000.
Individual needs have to be kept in mind in choosing the right travel policy. For instance, a few policies come with a higher premium and do not provide hospital cash benefits but do provide liquid cash for financial emergency assistance. Reliance General Insurance (Reliance Silver) offers a ‘compassionate visit’ feature where a family member can come to the aid of the insured when he/she falls sick when travelling.
Remember your COVID-19 travel checklist
Check your home state’s (and your destination’s) travel restrictions
Check your accommodation’s covid-19 sanitizing protocols
Get vaccinated, check which vaccine is valid for international travel
Make a list of all nearby covid-19 testing sites and facilities in your destination
Plan your itinerary and make prior reservations and bookings where possible
Download local helpful coronavirus-related apps
Don’t Leave Without Pandemic Essentials – Hand sanitiser, extra masks, wipes, toilet seat covers, disinfectant sprays, and beyond.