As the new coronavirus takes hold in regions around the world, Canadian insurers say they have been fielding an increasing number of calls from wary travellers who want to know whether they will be covered if they are forced to cancel a trip or are stricken with the virus while abroad.
“It is important to note that the insurance must be booked prior to travelling and prior to any such travel advisory being issued by the Canadian government,” McAleer said in an email. If a person were to become ill before leaving home, the trip cancellation benefits could be tapped, while trip cancellation or interruption coverage would kick in if the illness arose while on vacation, he said.
“While most CFAR policies would cover such a scenario , it’s important to keep in mind that they typically do not reimburse the full amount,” he said. Gillian McArdle, a spokesperson for Royal Bank of Canada, said COVID-19 will be treated like any other illness under travel insurance policies sold by the firm, even as the trajectory of the new virus is difficult to predict.
That would benefit, for example, someone who had booked a trip to northern Italy and bought cancellation insurance before the government imposed a Level 3 advisory on the region this week directing Canadians to avoid non-essential travel. Travellers who return from a trip and face quarantine due to concerns about COVID-19 may also be eligible for short-term disability payments, according to Kevin Dorse, assistant vice-president of communications at the Canadian Life and Health Insurance Association.