Insurance provider Post Office is among the latest to issue an advisory regarding coverage exclusions when it comes to coronavirus claims.
On its travel insurance webpage, Post Office said: “Any policy add-on such as extended travel disruption (ERGO policies) or natural catastrophe and terrorism, enhanced trip disruption (Collinson policies) will not include cover for claims relating to coronavirus/COVID-19 if purchased from or after March 11, 2020.”
It was on Wednesday that the coronavirus outbreak became officially classified as a pandemic.
“Please be advised that there is no cover provided if the Foreign and Commonwealth Office advised against all but essential travel to your destination prior to you purchasing your policy,” added Post Office.
Meanwhile InsureandGo UK provided this update: “From 23:59 on March 11, 2020, InsureandGo policies will no longer provide cover for claims relating to coronavirus disease (COVID-19), severe acute respiratory syndrome coronavirus (SARS-COV-2), or any mutation of these.”
InsureandGo also has a dedicated FAQs page for policyholders.
Previously, Insurance Business reported that LV= has stopped selling travel insurance for now, while Aviva has changed its proposition for new customers.
Commenting on the developments, GlobalData senior insurance analyst Daniel Pearce noted: “GlobalData’s 2019 Insurance Consumer Survey indicates that single-trip policies were by far the most popular choice in 2019, with 61% of individuals who purchased cover before their trip opting for this type of policy.
“With such a high proportion of consumers purchasing single-trip policies, the implications of changes to policy exclusions could have a long-standing impact on those who may need to purchase cover for future travel.”
Pearce added: “Consumer sentiment will also be negatively impacted in the long term, as insurers have also stated that other insurance products – such as business interruption – will not cover against losses attributed to coronavirus. The industry will undoubtedly have to work hard to rebuild consumer confidence or face the prospect of longer lasting impacts.”
