Travel insurers change policies during global pandemic

Travel Guru: Is travel insurance too good to be true?

Most travel insurance excludes pandemics.

So when travellers were told about Cover-More's Cancel For Any Reason add-on policy they thought they had found a solution to the problem of booking in an era of COVID-19 - when so many plans are, so to speak, up in the air.

Sadly, Cover-More has now withdrawn the option as of Friday, March 13 in response to the escalating COVID-19 outbreak.

"Cover-More has made the decision to suspend sales of the CFAR product for an interim period while the company assesses the risk profile and immediate sustainability," said Cover-More CEO, Asia Pacific, Judith Crompton.

Cover-More confirms that policies purchased by end-of-day on March 13, 2020 remain valid.

Cancel for any Reason was hailed as a go-to product.

"This is exactly the type of insurance to buy when travelling in this COVID-19 situation.

It gives people ... some peace of mind should this coronavirus epidemic expand," said Lisa Kable from the Insurance Council of Australia.

Consumer watchdog the ACCC has warned the industry about the rising number of complaints over refunds - 650 in one week this month.

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