Coronavirus: what you need to know about insurance cover
With the Novel Coronavirus (COVID-19) spreading to countries all over the world, the World Health Organization has finally declared the virus as a pandemic on 11th March and even forecasted that the situation would worsen. At the time of writing, 118,000 cases have been confirmed in 114 countries, among which nearly 4,300 people have died.
Sports competitions, major conferences, music festivals, and events with large crowds have been called off or delayed. Employees have been asked to work from home. Consumers have been panic-buying surgical masks, medicines, and hygienic products. With fear continuing to spread, more people are getting concerned over whether their health, life, and travel insurance will cover the novel coronavirus. In this Pacific Prime UK article, we will find out the answer to this question.
Does my health insurance cover COVID-19?
While there is no simple answer to this question as every insurance policy has its own terms and conditions, most health insurance plans do cover at least part of the treatment.
Normally, epidemics coverage is not included in many policies. However, since coronavirus is a new virus, most insurers will treat it as a special condition that is not subjected to general exclusions.
It is likely that the insurer will reimburse for the following medical costs, up to the prescribed limits of each policy:
- Costs for diagnostic tests when requested by a medical professional
- Costs for eligible inpatient treatment, including admission into an isolation ward after contracting the COVID-19 virus
- Cost of eligible outpatient treatment for the virus and its symptoms, as requested by a medical professional
You will still have to pay your copay or deductible (if any) before getting any claims. And you will still be covered overseas if you have purchased an international health insurance plan. In other words, the way your plan’s benefits are structured will be reflected in its COVID-19 coverage. However, self-quarantine at home will not be covered as the expenses will be out-of-pocket.
Additional coverage
In light of the current situation, some insurers are offering extended insurance coverage, such as covering all medical complications resulting from COVID-19 and medical evacuation if the necessary help isn’t available locally. Other additional supportive measures on offer include:
- Waived cost for a ward upgrade during COVID-19 hospitalisation
- Simplified and express claims procedures
- Virtual consultations
Having said that, each insurer and insurance policy has its own terms and conditions attached to outpatient treatments and COVID-19. Hence, it’s advisable to check with your insurance agent or an established insurance broker like Pacific Prime UK.
Does my life insurance cover COVID-19?
As a rule of thumb, if you die from COVID-19 in your home country, your life insurance policy should payout. However, your location and occupation nature may render you excluded by your life insurance policy. For instance, if you are working abroad and your occupation could put you at high risk for the coronavirus.
While the coverages for existing clients will not be affected by the coronavirus outbreak, insurers are working with reinsurers to assess the progression of the pandemic and progressive clients will need to disclose if they might have the virus.
Does my travel insurance cover COVID-19?
Travel insurance covers all types of travel-related accidents and mishaps such as flight delays and cancellations. Whether your travel insurance compensates for your trip cancellations depends on the actual situation.
For example, if you cannot continue your trip because the government has issued travel bans to your destination, or because the airline cancels your flight, then you will most likely be entitled to a full refund.
However, if you cancel your trip simply out of coronavirus fear, the only travel insurance plans that will cover you are those that allow “cancellations for any reason”, which can often cost up to 75% of the plane ticket price.
Furthermore, if you book your trip after COVID-19 has become a known issue in your destination, you won’t be covered. In contrast, if you booked your trip beforehand and are unable to travel due to the outbreak, or if you have to cancel your trip when there is a sudden outbreak of the virus during the journey, your travel insurance may cover you. But the safest practice, of course, is to talk to your insurer before you cancel your trip.
Talk to Pacific Prime UK for more information
As an international insurance brokerage with 20 years of experience, Pacific Prime UK is adept at matching clients with the plan that best matches their budget and needs. Talk to our experts today for free quotes and a plan comparison!
When she's not typing away on her keyboard, she's reading poetry, fueling her insatiable wanderlust, getting her coffee fix, and perpetually browsing animal Instagram accounts.
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