Insurers stop issuing policies for travel to coronavirus-affected countries

General insurance companies are no longer issuing travel insurance for countries against which India has issued a travel advisory with regard to coronavirus.

While there has been no formal instruction from the Insurance Regulatory and Development Authority of India (IRDAI) on the issue, a number of insurers that BusinessLine spoke to said it is common practice not to issue travel insurance for countries against which there is a travel advisory.

“We are following the advisory as listed by the Government of India on their website,” said Gurdeep Singh Batra, Head - Retail Underwriting, Bajaj Allianz General Insurance. “Yesterday, too, an advisory has been issued. Travel insurance policies have a clause for exclusion for countries against which the government has issued a travel advisory. Those who had travelled before the advisory will stand covered.” Batra added that it is advisable not to travel to such countries, and to follow the dos and don’ts as a precaution, without panic, as of now.

The Centre had on March 3 issued a fresh travel advisory directing Indians to refrain from travelling to Japan, Iran, Korea and Italy, apart from China. It also cautioned against non-essential travel to other Covid-19 affected countries.

‘Sound underwriting practice’

“People who travelled to these countries before the advisory stand covered under the travel insurance policies,” said Shreeraj Deshpande, Chief Operating Officer, Future Generali India Insurance Company. “It is only sound underwriting practice that we do not issue policies for travel to countries against which there is a travel advisory, be it because of coronavirus or a war time situation.”

As such, existing travel insurance covers taken before the advisory, as well as regular health insurance policies, cover coronavirus. In case a policyholder gets infected, he/she can file for a claim, insurers said.

However, the treatment expenses for coronavirus are not likely to be much as all of it, including screenings and quarantine, are being undertaken by government health authorities, insurers pointed out.

Subramanyam Brahmajoysula, Head - Underwriting and Reinsurance, SBI General Insurance said, "Claims due to coronavirus are payable provided the concerned person is hospitalised for at least 24 hours. Most of the health insurance policies in India do not cover outpatient treatment. However, if coronavirus is declared as a pandemic by WHO or Indian government, then claims might not be payable as such claims are excluded under many health insurance policies."

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