Changes in Travel Insurance During COVID-19

  • Author :
  • TATA AIG Team
  • Published on :
  • 12/09/2023

Following the unforeseeable halt with the outbreak of the COVID-19 pandemic, the world gradually adapted to the new normal. Several industries underwent changes to accommodate revised requirements such as contactless payments, increased healthcare measures, heightened focus on hygiene, etc. However, the travel industry had to take a few steps further to recover from the jolt. Right from flight cancellations and stringent vaccination checks to countries closing their borders and continued revisions in travel restrictions, the travel industry had to deal with a long rough patch. Travel insurance providers also updated their policies to ensure safe journeys and the threat of potential financial losses. The first major step was the provision of travel insurance with COVID coverage.

Changes in the Travel Insurance Plan Due to COVID-19

There is no denying that travelling changed in the post-pandemic era. During the initial breakout of the infamous novel coronavirus, it was hardly believed that the consequences would be so dire and far-reaching. To mitigate the crisis and curb the spread of the virus, the first quarter of 2020 witnessed some form of lockdown or travel restrictions. Amidst the crisis, several individuals were impacted because they couldn’t travel. Aside from the restrictions, people were also scared of contracting the virus and had to deal with a lot of anxiety for an unavoidable journey.

covers COVID-19. Some of these included risks such as closing borders, threats of emerging Understanding the plight of travellers, travel insurance providers started to offer travel insurance for COVID. Travellers could be protected from unpredictable risks with international travel insurance that virus hotspots, cancelled flights, and more that could disrupt travel plans. With a travel insurance policy covering COVID-19, individuals started to feel safer about travelling. In addition to securing the journeys of travellers, international travel insurance with COVID coverage also encouraged the travel and hospitality industry to recover from their losses.

Let’s now have a look at the changes in travel insurance in the new normal:

Increased demand for travel insurance plans

With changing times comes a change in requirements. Knowing this, several travellers understood the importance of a comprehensive travel insurance policy, thereby greatly increasing its adoption. Travellers started to understand the importance of having a financial safety net if things didn’t go by plan.

With the looming threat of the virus, travellers realised that all their travelling plans could change if they or someone in their immediate family contracted the virus. Aside from this, there are several other unforeseeable hindrances, such as flight cancellations, border closures, getting stuck in layovers due to unexpected travel restrictions, etc. All of this not only hinders your trip but can also lead to a lot of financial distress without international travel insurance with COVID coverage. As travellers considered all these factors, the demand for a travel insurance plan with COVID-19 coverage surged to soon become a travel essential.

Revised cancellation policies

One of the most important things to do before buying international travel insurance that covers COVID-19 is to read all the policy documents carefully. Every insurance buyer must be aware of the inclusions and exclusions in the policy cover before they make the purchase. Not only does this ensure an informed buying decision, but it also helps you understand the circumstances under which your travel insurance policy will not cover you. This is important to know so that you are not unpleasantly surprised at the time of raising a claim against your travel insurance plan.

To illustrate with an example, most insurance providers will compensate you if you have contracted the illness. However, your travel insurance for COVID does not cover you if you are worried about getting the virus but have not tested positive for it.

Benefits Included in Travel Insurance with COVID Coverage

With continuous changes in travel and regulations and changing restrictions, it has become challenging to keep pace with them. To accommodate these fluctuations, insurance providers have had to make changes to the policy inclusions. For instance, formerly, your travel insurance plan would only cover you for contingencies such as loss of baggage, misplaced passports, flight cancellations, etc. In travel insurance with COVID coverage, travellers are covered against COVID-19-related hospitalisations in a foreign land during the trip. These include medical costs, trip cancellation due to testing positive, costs of hospitalisation and quarantine, etc.

The Importance of Travel Insurance with COVID Coverage

Here are some reasons why travel insurance for COVID is an indispensable travel essential:

Ever-Changing Travel Rules: The continually changing travel rules and restrictions make travel plans increasingly uncertain. This is particularly the case with Indian citizens who don’t always have a financial backup if their travel plan backfires or abruptly changes. This problem further intensifies when certain international borders are closed for individuals travelling from high-risk areas – something that has been the case with India for a while. Considering these complications, it is highly recommended that people travelling internationally invest in international travel insurance with COVID coverage. It offers a reliable financial safety net.

Flight Cancellations: Although the situation with COVID-19 is gradually coming under control, it cannot be predicted when the flight situation might change. In addition to COVID-19, there may be complications due to the weather, which can lead to flight delays and cancellations, thereby leaving the traveller in a fix. Invest in a comprehensive travel insurance plan to prepare for these unforeseeable scenarios.

Challenges in Airline Operations: The pandemic has been hard for every industry, including travel and hospitality, which suffered a mighty blow owing to travel restrictions. The airline companies worked with skeletal staff to mitigate losses, which often created internal complications. Owing to these changes, the likelihood of misplaced luggage, missed connections, etc., increased. However, with travel insurance, travellers are duly protected from bearing these losses.

The Bottom Line

Your travel insurance is your best companion in contingency situations when you are travelling. And so, it is essential to undertake adequate research before selecting a policy coverage. Every insurance seeker is advised to compare travel insurance plans before they make a purchase. The travel insurance policy by Tata AIG secures the traveller against a host of unpleasant scenarios such as delayed flights, misplaced luggage, loss of passport, and medical emergencies, including COVID-19 coverage.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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