Changing In Travel Insurance Policies Due to Covid-19

The COVID-19 hit the travel industry hard and results in the global clampdown on the travelling. The virus started spreading from China in the last of 2019 and rapidly spread into the other parts of the world. Due to severe consequences, countries imposed restrictions on the travel activities to curb the spread of the coronavirus.

While travelling, one of the most important factors to consider is Travel Insurance and its significance can never be denied. In most cases, it is recommended to take travel insurance to ensure a safe and better traveling experience.

It acts as a protective shield that saves the people from certain mishaps they may likely encounter during travel. The pandemic has disrupted all the life activities and also changed the travel insurance policies in several ways.

1. Stopping Sales:

Soon after the travelling ban was announced the insurers stopped the sales of the new policies. This step is mostly followed by the international travelling market where the countries forced limitation on selling new travel insurance plans.

Must Read: When It Makes Sense To Purchase Travel Insurance

Moreover, they also tightened the existing contracts. So by considering this scenario it is very difficult to travel amid the pandemic when no novel strategies of travel insurance coronavirus are being introduced to facilitate the travelers. The sales might be resumed after the virus outbreak but still it is not confirmed yet.

2. More Restrictions:

Many companies have announced that they will not provide Travel Insurance Coverage during COVID-19. According to them, at the time of the travel plan there was no travel ban so the company is not responsible to compensate the direct and indirect losses associated with the coronavirus.

However, only some companies are adopting refunding policies. Furthermore, after all these happenings travel insurance products are stiffening their coverage by creating more restrictions. They may consider excluding the coverage in case of any pandemic such as travel insurance coronavirus cancellation.

3. Record high Payouts:

Due to the suspension of the new travel policies, there is an unprecedented increase in the claims by the customers. The people are now claiming the refund policy as in the ongoing situation it has become very difficult for some companies to survive.

Read: How to Choose Best Travel Insurance Plan

There is a tremendous increase in the workload as the people wanted to compensate for their losses through travel insurance. It is quite evident that claims will take a long time to settle down and to be covered from the loss. The future of travel insurance coverage is quite unclear as nobody is aware of it. We all have to wait and see whether there will be light at the end of the tunnel or not.

4. New limitations:

There is a limitation to the travel policy such as “cancel for any reason”. Previously the people can use this policy to get a partial refund for traveling because of any reason. But now this insurance plan is limited or it might be disappeared after the coronavirus. By analyzing the issues related to the COVID-19 this policy has been unsustainable, changed, and could not last longer.

Importance of Travel insurance for Future Trips:

Many people are anxious to know that whether it is worthy to purchase travel insurance for future trips. Yes, it is worth considering as many things are associated with the travel insurance that will not change even after the coronavirus.

Travel insurance covers stolen baggage, employment layoff, missed flight, financial default, trip cancellation, travel delay, and trip interruption. But make sure to read the coverage carefully to avoid any inconvenience during travelling. If you are planning to travel, visit trips.pk and get to know about the variety of travel packages to make your journey memorable.

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