The travel advisory issued by the Canadian government on Wednesday is already sparking changes by some travel insurance companies. Travel agents and expert say it’s definitely a case of buyer beware.
Allianz Global Assistance Canada sent me an email to say that the situation changed once the government of Canada issued its advisory for Canadians to avoid non-essential international travel.
“While coverage varies by channel and product, generally speaking, policyholders with Emergency Medical benefits who contract COVID-19 at their destination would not be eligible for emergency medical treatment if a Government of Canada travel advisory (against non-essential travel, level 3 or 4) related to COVID-19 is in place for their destination on their departure date,” the company said. “For customers needing to travel during an active travel advisory, Allianz Global Assistance continues to offer a COVID-19 Insurance and Assistance Plan, which provides coverage for emergency medical and quarantine expenses related to COVID-19 if there is an advisory in place on the date of departure. This plan complements an Emergency, Hospital & Medical plan or All Inclusive plan for travel to international destinations and must be purchased before departure.”
Martin Firestone, president at Travel Secure Inc., said he was told by ManuLife that they updated their policies on Wednesday. Here’s the information they sent to him:
“Travel Update: On December 15th, 2021, the Government of Canada issued an advisory to “Avoid Non-Essential Travel” outside of Canada. Manulife Travel Insurance plans that include emergency medical benefits will not cover COVID related medical claims under this advisory. For clients who will be traveling outside of Canada, our Covid19 Pandemic Travel Plan is recommended, as it does provide coverage for COVID related medical emergencies.
“For clients who have purchased a Travel policy for an upcoming trip without COVID-19 coverage, a refund can be requested prior to the effective date by emailing am_brokersupport@manulife.ca. Please note that we are experiencing high volumes of inquiries due to the changing travel advisories, so you may experience a delay in response. We appreciate your patience.
“We are quickly working through the impacts to you and your clients and will share more detailed information on Friday, December 17, as part of the launch of our enhanced COVID-19 Insurance and Assistance Plan,” ManuLife said.
Firestone said Canadians have pretty much gone back to the days of 2020 and early 2021 in terms of travel insurance, where travellers who want COVID-19 coverage will have to pay more and buy higher-end packages to make sure they’re protected.
He said he’s been told that COVID coverage is often around 20% higher in price than “regular” medical coverage. Which isn’t a huge premium.
But not insurance groups have made the same decision. TuGo, for example, isn’t changing their policies.
I went onto the TuGo insurance website today and found this statement, dated Dec. 15, 2021.
“With the Canadian government’s reinstatement of the level 3 “avoid non-essential travel” advisory, we’d like to reassure you that this announcement won’t impact TuGo’s COVID-19 coverage. As of November 30, 2021:
Emergency Medical Insurance for Canadians: TuGo provides COVID-19 coverage under our Emergency Medical Insurance plans for vaccinated Canadians, up to the policy limit. We now provide coverage to travellers regardless of travel advisory levels issued by the Canadian government. Our COVID-19 – Unvaccinated plan for unvaccinated Canadians (and those wanting extra quarantine benefits) also remains unchanged.
Trip Cancellation & Trip Interruption Insurance: We provide coverage if you must cancel or interrupt your trip due to a medical condition related to COVID-19. Cancel for Any Reason Coverage can be added to Trip Cancellation & Trip Interruption policies, to cancel for any reason more than 5 days before the departure date, for a 50% reimbursement.
Government required testing: Remember, COVID-19 testing isn’t covered. For details, please refer below to “COVID-19: Tests”.”
It’s a decidedly messy situation, so the best advice is to always read the fine print and ask lots of questions about your coverage. You don’t want to end up in a foreign country with sub-par insurance if a crisis hits.
“Not all travel policies are created equal,” Wendy Paradis, president of the Association of Canadian Travel Agencies, told Global News last month. “If there’s any time that you’re going to read the fine print in your insurance policy, now’s the time.”
