Everything you need to know about insurance, travel, and COVID-19
As winter sets in, sunny locales are naturally becoming more and more enticing—and understandably so! This brings up questions about insurance. “Will I be covered by my travel insurance if I catch COVID-19 when travelling abroad? And if I have to cancel, is that covered?” Read on for answers.
COVID-19 coverage for medical care abroad
Travel insurance is made up of several components. The emergency medical care component covers you if you are injured or get sick while abroad. It means the insurer takes care , directing you to the care you need, getting you everything you need, repatriating you if necessary, covering your medical expenses, and so on.
Although COVID-19 coverage varies greatly from one insurer to another, there are three main categories:
Insurers who cover COVID-19 regardless of government advisories
Some insurers now cover COVID-19 on their basic policy or in an endorsement (for a fee), regardless of government warnings and the reason for travel. These insurers have given impatient travellers hope, but be aware that this coverage has important limitations:
- In light of the current global situation, regardless of the destination you’re visiting, the coverage you have, or the reason for emergency care, insurers cannot guarantee access to medical care or assistance services, given the high number of patients in hospitals. The same is true for assistance services.
- To be confirmed: The maximum compensation for medical care tied to COVID-19 and the benefits may not be sufficient in the event of prolonged hospitalization or complications.
- You must not show any symptoms of the virus before departure.
- You may be required to interrupt your trip and return home if the insurer deems the situation too risky.
- Once at your destination, any request to extend your trip may be denied, and you may be required to return to Canada (at your expense) at any time.
- Some insurers do not make direct payments to hospitals for COVID-19–related care. That means travellers must find the money to pay these—often very expensive—medical bills themselves and then ask the insurer for reimbursement.
Insurers who cover COVID-19 for essential travel
These insurers cover COVID-19-related medical care only for trips deemed essential, for example, for essential service workers, or to visit a loved one at the end of life or attend a funeral.
At the same time, the definition of “essential travel” is a moving target, leaving travellers to decide whether or not their trip is essential—and insurers may determine otherwise! Before assuming that a trip is covered, it’s best to discuss it with your insurer, come to an agreement, and maybe even get it in writing.
Insurers who cover COVID-19 or not, based on government advisories
These advisories are issued by Global Affairs Canada and generally concern a region or country, but on March 13 a travel advisory was issued for all countries. That advisory is still in effect.
What about other risks, like motor vehicle accidents, food poisoning, falls, fractures, etc.? Anything that is not covered by the government advisory and is not a should be covered by your insurer, but it’s best to check with them before you leave.
COVID-19 tests: What to ask your insurer
As of January 7, 2021, all travellers ages five and up must show proof of a negative COVID-19 test before boarding their flight back to Canada. Does your travel insurance cover the cost of the test? Because each policy has its own conditions and limitations, we strongly suggest you contact your insurer for clarification.
Even if your insurance covers emergency medical care tied to COVID-19, it might not cover the test. There could also be significant differences between polices purchased before and after January 7.
Here are some questions you might want to put to your insurer:
- Will my travel insurance reimburse the cost of a COVID-19 test abroad?
- Will my emergency medical care coverage be automatically extended if I test positive for COVID-19 and have to stay longer in the country I’m visiting?
- Is a positive COVID-19 result automatically considered an emergency medical situation? Or does that only happen if I need hospital care or medications?
- Am I responsible for my living expenses (accommodation, meals, transportation) and the cost of my return flight if I have to extend my stay because I tested positive?
- Will I be covered for emergency medical care if I develop COVID-19 symptoms while in quarantine at my destination?
It’s important to understand that assistance services offered by insurance companies can point you in the right direction, but there’s no guarantee. They might not be able to suggest a testing location, or you might not be able to get tested. They may also recommend you contact the local health authorities. Before you leave, it’s a good idea to check in with your travel counsellor. They will be up to date with health measures and can help you find a testing location.
COVID-19 coverage for trip cancellation or interruption
All insurers agree that you cannot claim compensation for a trip cancelled due to COVID-19 if you purchased cancellation insurance after March 13, 2020. That’s because insurers cover the unexpected, but COVID-19 became a known risk on March 13, when the Canadian government issued its global warning.
The same is true if you go on vacation and have to interrupt your trip due to a COVID-19 outbreak. The return trip will be at your expense, as COVID-19 is a known risk.
Cancellation and interruption insurance is still valid for all other risks covered by insurers’ respective policies.
Coverage for COVID-19-related risks should resume when the official travel advisories are lifted. For example, if you book your dream trip to Provence when no advisory is in effect and the borders unfortunately close before your departure or a new advisory is issued, your trip cancellation insurance should cover you.
Other solutions to protect you
There are other ways to get COVID-19 coverage while travelling, such as through an air carrier, cruise line, resort, or even a country or region. But these options are for COVID-19-related risks only and are not the same as travel insurance. You still need travel insurance for all other risks. Also, just like private insurance, these options are no guarantee that you’ll be able to get medical care at your destination. For more details, .
COVID-19 coverage from airlines or tour operators
Some airlines (Virgin, Emirates, etc.) and tour operators now offer insurance that covers certain COVID-19-related risks for certain destinations. For example, Air Canada Vacations, Transat, and Sunwing offer this kind of insurance with their South packages. This insurance covers medical expenses, accommodation costs in case of quarantine, and transportation and repatriation costs. However, the common maximum coverage amount of Can$100,000 per person may not be enough to cover intensive care hospitalization expenses, especially in the United States. The same is true of the $100 per day living allowance.
COVID-19 coverage from countries and regions
Portugal, the Dominican Republic, and the Canary Islands offer visitors free or low-cost COVID-19 insurance. For example, Portugal’s insurance covers medical and hospital costs, as well as trip cancellation, interruption, and extension. Just remember that access to care for COVID-19 patients is currently a huge problem. Although some countries and regions cover visitors, it is best to make sure that care is available.
Look for flexible products to limit COVID-19-related risks
The pandemic has brought its share of uncertainties that could jeopardize a trip. What if a friend or family member gets sick right before you leave? What if you develop a fever, a new warning is issued, or an outbreak occurs at your hotel before you get there? There are many reasons why you’ll want flexible or even refundable travel products.
Leading travel service providers understand this, and most are offering much more flexibility. For example, they allow you to cancel, postpone, or transfer a trip or make last-minute changes at no charge or for very reasonable fees. Some insurers even offer a full reimbursement.
You can also consider purchasing refundable insurance. Travel insurance coverage for emergency medical expenses is generally refundable up until it takes effect (usually your departure date). But don’t expect to be reimbursed for annual travel insurance, as that type of product is generally non-refundable (even on a pro-rated basis!) after it takes effect.
The CFCTA. The what?
The CFCTA, or Compensation Fund for Customers of Travel Agents, is managed by Office de protection du consommateur (OPC). The purpose of the fund is to reimburse consumers for tourism services they paid for but did not receive. But beware! Don’t count on claiming compensation for a trip due to COVID-19 if you booked it while a government advisory was in effect for your destination. The CFCTA is crystal clear about that.
COVID-19 coverage for travel in Canada
Most insurers cover COVID-19 for travel in Canada. Do you need travel insurance to travel in Canada? Yes! Even Régie de l’assurance-maladie du Québec (RAMQ) recommends it. That’s because your health insurance card is not accepted everywhere in Canada. Also, RAMQ does not fully reimburse the cost of emergency hospitalization in another province; it only reimburses what the same treatment would cost in Quebec. The difference is the traveller’s responsibility. Hospital costs can quickly add up, so travel insurance is virtually indispensable.
Compensation for trips cancelled due to the COVID-19 pandemic
First of all, compensation terms are not determined by CAA-Quebec or travel agencies, but rather by insurers or service providers such as travel wholesalers, air carriers, and cruise lines. Here’s what you need to know:
Policies in flux
Compensation policies are constantly changing. The Canadian government has recently expressed openness to helping Canadian airlines if they issue a full refund to passengers whose flights have been cancelled. This is a starting point, and we are monitoring these negotiations very closely. The government’s concrete and formal commitment is a first step that we cautiously welcome. We’ll keep you posted.
Travel credits
Some travellers were reimbursed by their service providers, but most received a travel credit even though many would have preferred a refund. Provider policies vary widely, so it’s important to be aware of them and weigh your options. You should also know that many providers have relaxed the terms for using their travel credits, for example, by eliminating the expiry date or allowing credits to be transferred to someone else. Here’s what Office de la protection du consommateur says on its website about travel credits:
It may be to your advantage to accept travel credits if you can, since doing so means you’ll get compensation quickly and relatively easily. But you may want to refuse when credits have restrictive conditions, such as an expiration date or a penalty.
For insurers, credit = refund
As regards trip cancellation insurance, most Canadian insurers have adopted the same rules and consider credit for future travel as a refund. That means you can’t refuse credit from a provider because you want to secure a refund through your cancellation insurance. So it’s best to ask your insurer about its policies on claims related to COVID-19 before refusing credit from a provider.
Your travel credit is protected by your travel insurance
If you had cancellation insurance for your scheduled trip and were offered a travel credit, your insurance will likely cover the credit until it is used or expires. This is true for cancellation insurance purchased from CAA-Quebec. It means, for example, that if the travel servicer provider can no longer honour its credit or you, in the meantime, become unfit to travel for major health reasons, you can submit a claim to the insurer. If your travel credit expires before you can use it, you will be able to submit a claim to your insurer to obtain a refund.
As for your insurance premium, it may not be automatically refunded for a trip that is cancelled (e.g., a cruise cancelled before departure) or shortened (e.g., snowbirds returning home early) due to an advisory from Global Affairs Canada. Check with your insurer.
The CFCTA again!
You may also qualify for compensation through the CFCTA (Compensation Fund for Customers of Travel Agents) if you purchased your trip from a licensed agency before the government advisory against all travel was issued on March 13, 2020. The CFCTA can be used to refund tourism services that were paid for but not received due to a government-issued advisory. OPC (Office de protection du consommateur), which manages the CFCTA, encourages travellers to get in touch via email and be patient. More information on .
OPC says on its website that it is discussing the issue of travel credits with various stakeholders. We’ll keep you posted.
Lastly, if you didn’t have insurance, you must agree to the Check to see if you have trip cancellation and interruption insurance with your group insurance or with the credit card used to pay for the trip.
Some credit cards offer coverage for goods and services you have paid for and not received. That coverage may be included or available as an option. Not sure if your card includes it? Check with your credit card company.
Things are looking up!
To wrap up, remember that the official advisory against all non-essential travel outside Canada remains in effect and should be taken seriously. Basically, travel is still not recommended. If you must travel for your own reasons, CAA-Quebec encourages you to follow the applicable health recommendations to a T and be extra careful. Remember that complete isolation for 14 days is still required for anyone returning from abroad.
Can’t wait to travel again? Neither can we! For now, there’s nothing to stop you from dreaming and even planning your next trip. CAA-Quebec travel counsellors and provide information on insurance, health measures, and . Let’s look on the bright side. Airplanes have resumed flying, now with reassuring health protocols. Vaccines are on the way. Returning to pre-pandemic life will take time, but we will get there.