by Lucy Hook
As the Zika virus continues to spread, so does fear among travellers – and this fear is causing problems when it comes to travel insurance policies.
Last week, an Ontario family said that they regretted not doing enough homework on the virus before booking a $3,500 trip to Jamaica, knowing that they were expecting a baby.
Syed Assad told
CBC News that his family was unable to claim a refund for the trip, despite being advised by a doctor not to travel due to the risk of the Zika virus to the unborn baby.
Sunwing Airlines said that while they were “sympathetic” to the Assads’ plight, they were unable to offer a free cancellation as the family already knew that they were expecting a baby, and a travel advisory was already in place for Jamaica.
So what advice should clients be given when it comes to their travel insurance policy and how the Zika virus might affect it?
“Zika is a challenging issue for insurers as there is no provision in policies which covers ‘fear of travel’,” David Rivelis, Executive Vice President, CanAm Insurance, told
Insurance Business.
Most issues from the Zika virus relate to trip cancellation prior to departure, particularly among clients of childbearing age, who are more likely to have a fear of travel, Rivelis said.
However, the situation can become complicated in cases where the traveller becomes pregnant after booking the trip, or intends to become pregnant in the future and is concerned that a trip may affect their ability to do so safely.
“While most insurers are making case-by-case exceptions in the event of a cancellation claim due to Zika, travellers should ensure that they purchase a policy that includes a ‘cancel for any reason’ clause,” Rivelis explained.
This is a benefit of many Canadian all-inclusive travel insurance policies, he said, and this type of clause would allow for reimbursement of prepaid trip costs for any reason.
“Brokers should ensure that they advise their clients of the potential impact of Zika on their ability to cancel their trip,” he said. “For those clients who are of child bearing age, brokers should pay special attention and ensure they provide a detailed overview of policy limitations and exclusions so that there are no surprises in the event of a claim.”
Rivelis suggested that brokers also advise their clients that they can contact their travel insurer’s 24hr help-line prior to departure to find out what is covered in the event they need to make a claim.
Related stories:
Zika concerns rise as virus appears in ‘unusual neighbourhood’
Growing travel insurance fears to be addressed by regulator
