AS LEVEL "temporarily" stops selling travel insurance, will others follow suit? - News-Credit-Mortgage-Coin


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Thursday, March 12, 2020

AS LEVEL "temporarily" stops selling travel insurance, will others follow suit?

Insurance giant pulls the plug on new vacation insurance due to coronavirus: If LV "temporarily" stops selling travel insurance, will others follow suit?

The insurer said it has doubled the number of policies in the past few weeks
Existing policyholders are not affected, but no longer sell new travel insurance
What do you need to know if you take cover? You can find our guide here
This is money has asked other insurers to change their policies

Insurance giant LV has discontinued the sale of travel insurance due to coronavirus, which experts have described as "alarming".

In a message on its website, the company said it "cannot currently" take out new customer travel insurance "and" has made the difficult decision to stop selling travel insurance to new customers. "

It added that it was considering "removing coverage or increasing prices for new customers," but prioritizing customers who had already bought insurance as "the right decision."

This is Money has contacted some insurers to find out if they plan to change their travel insurance offers and we will continue to update this page as soon as we find out.

A follow-up statement says: “The number of policies sold has doubled in the past few weeks.

"While LV is a major car and home insurer, we are a small travel insurer and it is important for the long-term benefits of all of our customers that our engagement in this market remains sustainable for all business."

Existing policyholders will see no change, but there was no indication of when they would start selling travel insurance again, although the move was described as "temporary".

Do other insurers follow this example?

Aviva: The insurer has also discontinued the sale of travel interruption insurance, an add-on that covers some delayed flights, and the "airspace closure" that covers people when the airspace from which they were flying is closed for 24 hours or longer is.

Post-travel insurance: Swiss Post continues to sell travel insurance to new customers.

With regard to the ERGO guidelines (Extended Travel Disruption) or the natural disaster and terrorism, the Enhanced Trip Disruption (Collinson Policies), however, customers are now being informed that there is no cover for claims acquired under COVID-19 11 March 2020.

This was the date on which the World Health Organization confirmed that Covid-19 is a pandemic.

Customers can continue to purchase the additional cover. However, if you purchase them after March 11, you cannot claim Covid-19. Swiss Post has confirmed that it is monitoring the situation closely and will update its Travel Warnings page with the latest information for policyholders.

Gareth Shaw, head of money at consumer group Which?, said: 'It's very alarming that LV have withdrawn the sale of travel insurance and that other providers have also started restricting the policies they offer customers.'

'Anyone planning a holiday should get insurance as soon as they book. If you haven't already booked insurance and are travelling soon we urge you to get cover immediately from a reputable insurer.

'The Government, insurers and the travel industry must immediately tackle the huge challenge provided by coronavirus, as the industry depends on people having the confidence that they can travel with the knowledge that they will be covered'.

Earlier in the week, comparison website Go Compare said policy sales had risen 170 per cent since the coronavirus outbreak.

Brian Brown, Consumer Finance Expert at Defaqto, said: 'This week alone we have seen Aviva remove their optional cover for cancellation due to Coronavirus, LV= have pulled out of the market, and today Insurance & Go has updated it’s policy to not pay ANY claims related to Coronavirus.

'This is a fast moving issue, and it’s very likely that over the next few days or weeks we will see other insurers follow suit.

'Our advice for people travelling this spring/summer is to check their policy NOW to make it covers them for cancellation due to FCO advice, and if they are not covered they should buy insurance from another insurer while they still can.'

What do people who book travel insurance need?
Earlier this week, This is Money examined what travelers should look for when buying insurance that covers them if their vacation is affected by coronavirus.

The insurance will probably only cover you if the Federal Foreign Office has described the country you are going to as a place to which you should only travel in an emergency.

If you have booked a vacation elsewhere and the Foreign and Commonwealth Office has not advised against all trips to that country at the time of booking, you should be covered by the insurance you have taken out.

Customers are advised to read the policy section labeled "Cancellation / Reduction Protection" or similar.

Brown added, “You should consider whether one of the insured hazards is that the FCO advises against all or all but essential travel to a region.

'If not mentioned, you should check the cancellation cover exclusions to see if the policy does not pay off if the FCO advises against travel.

'If the policy section does not mention the FCO Council, it is likely that it will not cover the customer if the FCO Council changes.

Sometimes insurers, especially those with a trademark to be protected, pay claims under these circumstances, even if the policy does not strictly take this eventuality into account. This is often the case with Icelandic volcanic ash, for example.

"If you decide to buy a new policy now, you have to make sure it covers it when the FCO changes its advice and tells people not to travel."

GoCompare Travel Insurance Sally Jaques said: “The situation is constantly evolving and travelers are advised to compare coverage closely to meet the specific challenges of the coronavirus outbreak.

“Buying a travel cover shouldn't just be a box where the cheapest policy works.

“The potential risks are very specific and you should check that you have the appropriate coverage and how your policy works.

'We advise people to review their flight cancellation insurance coverage in the face of Flybe's collapse as more airlines may struggle with the effects of the corona virus.

"SAFI provides cover for your flights if your airline goes into administration and ceases trading. If your travel insurance includes SAFI, you will get your money back for the cost of your flights."

However, it is unlikely that anyone who has travel insurance to travel to a location where coronavirus has been a known problem will be covered by this insurance.

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