Uudised

How does insurance compensate for costs related to coronavirus?

[Jonatan Jõks | 30.04]

Seesam has re-opened the sales of all travel insurance packages following the temporary pause after the establishment of the state of emergency. Travel insurance contracts entered into before 30 April 2020 are valid according to the terms and limitations that applied at the time the contract was entered into. Additional limitations are applied to contracts entered into as of 30 April. The indemnifications and limitations that apply for earlier and newer contracts have been specified below.

CONTRACTS ENTERED INTO BEFORE 30 APRIL 2020

Is my insurance valid if my flight is cancelled due to corona virus?

In the case of basic cover of travel disruption insurance, the insurance protection is only valid if the cancellation of the flight became known less than 24 hours before the beginning of the flight. If a person wishes to be protected against earlier changes or cancellations, the contract must include a package with extended cover. With basic and extended cover, the damages arising from cancellation of a trip caused by the limitations established for destination country travellers are not indemnified (Clause 7.3 of the terms and conditions). Upon cancellation of a flight, indemnification can be applied for on the basis of insurance that covers cancellation of a trip for any reason.

What (if anything) is compensated if my hotel is placed under quarantine?

If the insured party is quarantined and additional transport and accommodation costs arise due to the quarantine, these will only be compensated for with extended travel interruption cover.

Can I cancel my upcoming trip if the Ministry of Foreign Affairs has given a warning about travelling to the country?

If the traveller has entered into a travel interruption contract with basic or extended cover, cancellation of the trip due to the fear of falling ill is not treated as an insured event. Only the insurance cover of cancelling a trip for any reason enables you to cancel the trip due to fear or a recommendation given by the ministry. This can also be used for reasons other than fear of contagion, such as unexpected job duties, and it covers 70% of the client’s costs which are not repaid to the insured party by the hotel, airline or other service provider.

Does travel insurance cover treatment costs if I get infected?

Coronavirus is treated as any other illness. The medical care cover of travel insurance compensates treatment costs arising from being infected with the virus up to the sum insured chosen by the client.

What happens if the destination country has closed its borders?

A situation where authorities do not permit crossing the state border is basic cover of travel disruption insurance and an exclusion of extended cover (Clause 7.3 of the terms and conditions). If the country of destination does not permit entering the state, the cancellation of the trip is not indemnified even if the flight or the event that is the purpose of the trip is cancelled or there is another insurance event. The same exclusion is valid if Estonia does not permit leaving the country.

Clients who are already abroad and fall under quarantine can apply for indemnity on the basis of additional cover of travel disruption insurance for the additional costs of transport and accommodation arising from quarantine.

Which indemnification can I get with insurance that covers cancellation of a trip for any reason? Are there limitations for cancellation of a trip for any reason?

On the basis of the cover of cancellation of a trip for any reason, the insured party may cancel the trip for any reason and receive indemnification. In the event of insurance that covers cancellation of a trip for any reason, 70% of the costs, which the insured party could not use and the service provider could not repay, will be compensated for. Cancellation may take place before or during the trip. Upon cancelling during the trip, 70% of the services not used by the traveller and not repaid by the service provider will be indemnified.

The cover of cancellation of a trip for any reason are subject to general limitations specified in Clause 17 of the terms and conditions, but the main thing about the cancellation of a trip for any reason is that the contract has to be entered into on time. The cover of cancellation of a trip for any reason is not valid if the respective contract was entered into more than 14 days after buying the trip. The moment of buying a trip is deemed the date on which the first travel cost or booking was made or an obligation to pay for the trip was assumed in another way. Closing the borders does not inhibit indemnification on the basis of the cover of cancellation of a trip for any reason.

CONTRACTS ENTERED INTO AS OF 30 APRIL 2020

Is it possible to enter into travel interruption insurance with extended cover and cover of cancellation of a trip for any reason?

It is possible to buy travel interruption insurance with extended cover. The extended cover and cover of cancellation of a trip for any reason must be bought within two weeks from purchasing the trip. The extended cover and cover of cancellation of a trip for any reason are not valid if the trip has been bought more than two weeks before purchasing the travel insurance.

Does the declaration of a pandemic or establishment of the state of emergency change the validity of travel insurance?

Establishment of the state of emergency does not change the validity of travel insurance. An epidemic is subject to basic cover of travel interruption insurance and an exception in the event of extended cover. The limitations made for inhibiting the spread of an epidemic are also deemed an exception in the event of basic and extended cover of travel interruption insurance. An epidemic or pandemic does not exclude events of cancellation of a trip for any reason.

Does cancellation of a flight or an event constitute an insured event?

Upon cancellation of a trip (incl. cancellation of a flight or trip), it is presumed that the trip was cancelled due to an epidemic or the measures taken to limit its spread. If the insured person has proved that an insured event has occurred and the event is not directly or indirectly related to an epidemic or the measures taken to limit its spread, the damages are indemnified according to the respective terms and conditions.

Which limitations are valid for cancellation of a trip for any reason?

On the basis of the cover of cancellation of a trip for any reason, the insured party may cancel the trip for any reason and receive indemnification. In the event of insurance that covers cancellation of a trip for any reason, 70% of the costs, which the insured party could not use and the service provider could not repay, will be compensated for.

The cover of cancellation of a trip for any reason is not valid if the respective contract was entered into more than 14 days after buying the trip. General exclusions given in Clause 17 apply to cancellation of a trip for any reason, incl. the foreseeable damage described in clause 17.1. Foreseeable conditions are deemed to include, among other things, a situation where the country of destination of the trip has restricted access to its territory for any reason and this restriction has been in effect without interruption from booking of the trip or conclusion of the travel contract until the start date of the planned trip. A situation where the limitations of entering a state have been lifted after buying the trip/travel insurance and similar limitations are established again before the beginning of the trip is not deemed foreseeable damage.




























Insurance is provided by Compensa Vienna Insurance Group, ADB Estonian Branch, which operates under the Seesam trademark in Estonia. Before concluding policies, please read the terms and conditions at www.seesam.ee and consult an expert if needed.
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