If you have a trip planned, or are thinking of planning a holiday, either within Australia or overseas, here’s what you need to know about how to best guard yourself against any issues arising from the spread of Covid-19.
I booked a trip last year, am I still going to be covered for travel insurance?
It will depend on a number of factors, most notably when you booked the travel.
Lisa Kable, communications manager for the Insurance Council of Australia, told Guardian Australia in February that after Dfat made its announcement on 23 January about the risk of travel in relation to coronavirus it became a “known event” for insurers.
“If people are travelling and bought their travel insurance before it became a known event … the majority of travel insurance policies should cover people if they contract coronavirus overseas, or if their trips have to be moved around countries or places.”
If you bought it after the cut-off date, most travel insurers exclude pandemic, epidemic disease or infectious disease or a known event.
The same rules apply if people are already travelling, or have yet to start travelling – it only matters when the insurance was purchased.
Choice’s travel insurance review found less than half of insurers cover cancellation as a result of a pandemic or epidemic, but that’s only the case once it becomes a known event.
The same rules apply to both domestic and international travel insurance. While companies like NRMA note that sickness is one of the biggest reasons people make a claim on their insurance, the product disclosure statement says pandemics and epidemics are not covered if you cancel.
You can, however, get “cancel for any reason” cover as an add-on to your travel insurance. This allows you to claim up to 75% of your cancellation costs to $10,000 but it must be bought within 48 hours of paying for expensive items such as flights or accommodation.
Insurer Cover-More explicitly names Covid-19 as a reason you may wish to purchase this add-on.
The cost can vary depending on the insurer, but a quick quote online with one insurer suggests an increase in the price of the insurance by around 50%.
If you are worried you’ll die from coronavirus, life insurers in Australia have argued there is nothing in the exclusions to prevent them paying out life insurance in the case of a death from coronavirus.
What should I do if I have a trip coming up within Australia?
There aren’t yet warnings in Australia about avoiding travel or being out and about in public, save for those who suspect they might have coronavirus, and you can find out what you should do in that situation here.
Australia’s chief medical officer Brendan Murphy has not recommended any changes to how people go about their life in Australia at the moment.
The biggest factor to consider in domestic travel is the possibility your flight may be cancelled due to a downturn in the number of flight bookings. If it is a heavily travelled route, then it will likely not be a major inconvenience to book a different flight on the same day, but for routes with fewer flights you could end up with significant delays getting to or from your destination.
In that case, the airline may have to refund your flight. It is something the Australian consumer watchdog has been keeping a close eye on.
What should I do if I have a trip coming up overseas?
The best course of action is to first check the travel advice for where you are planning to travel with the federal government.
As of 9 March, Dfat says people should not travel to China, Iran or South Korea, and travel bans remain in place for foreign nationals who have travelled through these countries in the last 14 days.
Australians can still return, but will be required to self-isolate.
Dfat has also warned Cambodia, Hong Kong, Indonesia, Japan, Singapore and Thailand are at moderate risk for Covid-19.
This could change, and more countries could be added to the lists, so it is best to keep an eye on the government advice as you get closer to the travel date.
As with domestic flights, it is worth checking in with the airline to ensure you’re not bumped to other flights due to lower bookings and cancellations.
What about big conferences?
A number of big international conferences like SXSW, Mobile World Congress and various tech conferences have been cancelled over the past two months, and more cancellations are likely. Check your emails and the conference website for updates. A new website, isitcanceledyet.com, is also keeping track.
Is there anything I should look for when booking my trip?
If you’re not sure whether your trip is going to go ahead, you may be better off booking a fully flexible flight that will allow you to change or cancel the flight and get your money back, and the same for accommodation.
When it comes time to travel, check in with the airline to ensure your flight is still going ahead, and the travel advice remains the same for where you’re travelling.
Hotels and airlines and other providers are currently offering better cancellation policies than many of the major booking companies due to the downturn in bookings since the crisis started, so best to check the cancellation policy before booking and see if you can get a better offer directly.
Several cruise companies such as Regent and Norwegian are now allowing people to cancel bookings as late as 48 hours in advance with 100% refund.
Airbnb has also changed its policy on cancellations, now allowing for guests travelling to or from severely impacted areas to cancel without charge, and the same for hosts in, or welcoming guests from, severely impacted areas.
People who can’t travel due to travel restrictions or suspected cases of Covid-19 can get a full refunds, hosts won’t incur cancellation fees and it won’t affect their status as a host.
