The influence of Covid19 on insurance

It is mainly the health and travel insurances on which Covid19 has an influence and which, depending on where Covid19 poses the greatest risk, apply different conditions than where it is not. In Europe, it has been agreed that Member States give colours to countries with a Covid19 infection rate. This goes from green to red and it is the travel advice of the government that the insurance companies take into account.

However, you will undoubtedly have noticed that this is not synchronous within Europe and that each country applies its own rules. Belgium turned out to be the maverick in this area with its travel ban to red zones. The general and private conditions of your insurance are in most cases subject to the conditions of the country where you have signed the insurance.

Travel insurances

Travel insurance will cover you under its terms and conditions if you are in a country that is considered safe even if it suddenly changes colour and you have to cancel your trip or if you fall ill during your trip. Also, if the country to which you were going is suddenly no longer considered safe and your trip is interrupted as a result, this is covered. If you travel to a risk area against your will, you deliberately take risks and there is a chance that you are no longer covered.

Everything depends on what you have signed when you take out travel insurance. Many insurers have already included or excluded extra cover for Covid19 in their terms and conditions.

Health insurances

Health insurance covers the costs if you fall ill abroad. In fact, the cause of the illness does not come up for discussion. A basic health insurance such as the well-known mutual health organisations will cover your costs in the local and regional medical centres or hospitals and cover your health costs whatever the reason and whether the risk is in that country.

A supplementary health insurance or a private health insurance also helps if you go to a private hospital abroad, for example. These insurances often work under stricter conditions.

In the latter category, there is an important distinction to be made: the insurer will check whether or not travel advice was valid before you started your trip. Were you in a country that was designated safe before you started your trip or not? What steps have you taken when, for example, a certain country switches from safe to risky?

If you travel against the advice of your government (where you are a resident) then this is recklessness. There are exceptions, but you must be able to substantiate these with evidence. Recklessness is a valid reason for the insurer not to reimburse your expenses or to claim them back afterwards.

Here, too, there are private travel insurances that offer or refuse Covid19 related cover.