TRAVEL INSURANCE UPDATE – WHAT’S NEW?

Have you ever had to cancel a holiday because something like the below has happened?

• You’ve cut ties with your travel buddy and don’t want to travel with them anymore
• You’ve changed your mind about travelling
• Your visa application wasn’t approved
• You were too eager to book your trip before getting your leave approved. Oops!
• Cost of living has stung you and you can’t afford to travel now.

Usually, these scenarios aren’t covered by travel insurance companies. Well, not until now. 

Cover-More Travel Insurance is now offering a new add-on called Cancellation Plus Cover. 

It’s for those “didn’t see that coming” moments not covered by the standard Cancellation Cover. 

Cancellation Plus Cover offers you the flexibility to cancel your trip before you leave and claim some money back.

How does Cancellation Plus Cover work?

Under the International Plan, Cover-More Travel Insurance’s standard Cancellation Cover offers you comprehensive protection when you need to cancel your holiday due to unforeseen circumstances outside your control. Think of unexpected natural disasters, personal illness or the death of a close family member.

However, Cover-More Travel Insurance’s Cancellation Plus Cover add-on is designed for those on the highest International and Domestic Plans who want extra flexibility to cancel for a reason that would not be covered otherwise. 

When to add Cancellation Plus Cover to your travel insurance policy

Selecting the right level of cancellation cover upfront is pretty important. Consider all your prepaid expenses when choosing your cancellation cover amount. This includes flights, accommodation, tours, and any other non-refundable costs.

Then, the optional Cancellation Plus Cover can only be issued at the same time you buy your policy with Cancellation Cover. (Cancellation Plus can’t be added to the policy later on).

If buying an Annual Multi-Trip Plan, you’ll only need to add Cancellation Plus Cover once, even if multiple trips are planned.

Important to note: Cancellation Plus Cover will only be available on policies where the departure date is more than 7 days in the future (from the policy issue date).

Time sensitivities on Cancellation Plus Cover

Pre-purchased Costs: Cancellation Plus Cover doesn’t include travel costs paid more than 48 hours before you purchase the policy with Cancellation and Cancellation Plus Cover.

What does this mean?

• If you paid for your holiday more than 48 hours before buying the policy – you should not buy Cancellation Plus as it won’t cover those costs.
  • If you paid for your trip in the last 48 hours – those prepaid costs are included.
  • If you paid for part of your trip in the last 48 hours and will make further payments –  those prepaid costs are included.
  • If you paid a small deposit 6 months ago and are now making a substantial payment towards your trip – Cancellation Plus Cover will not cover the small deposit but the money you are outlaying now (and any subsequent payments) – are included in Cancellation Plus Cover.

Cancellation Timing: For Cancellation Plus to work its charm, you must cancel at least 48 hours before your adventure begins.

Important to know

Cancellation Plus Cover can cover up to 75% of either the non-refundable unused portion of prepaid travel costs or 75% of the Cancellation Cover sum insured, whichever is less. The maximum cover available is $10,000 per policy (even if the Cancellation Cover sum insured is more than that).

When travel is prevented – what happens?

Cancellation Plus Cover won’t apply if your trip can’t happen because travel is prevented due to:

• Widespread physical destruction at the destination(s) you were going to due to an act of war, civil war, Act of Terrorism or nuclear meltdown
• Government imposed restrictions on traveller movements due to border closures to non-essential travel or airspace closures
• Disruption of the transportation method you were going to use due to volcanic ash cloud preventing safe air movement or the closure of sea lanes preventing safe and free movement of sea vessels.

Cancellation Plus Cover ceases from the time when the event preventing travel occurs due to  the reasons above, regardless of alternate reasons for the claim.

Cancellation Plus Cover won’t apply however, you may be able to claim under the Amendment or Cancellation Costs benefit included in the policy.

While Cancellation Plus Cover offers fantastic flexibility and protection, it’s important to be aware of the details of the new option as terms, limits and conditions apply. 

You should read the full policy document to clearly understand what is and isn’t included.

Speak to your ATIA Accredited Travel Agent about Cover-More Travel Insurance and Cancellation Plus Cover. 

Disclaimer:
Limits, sub-limits, conditions and exclusions apply. Insurance administered by Cover-More Insurance Services Pty Ltd (ABN 95 003 114 145, AFSL 241713) on behalf of the product issuer, Zurich Australian Insurance Limited (ABN 13 000 296 640, AFSL 232507). Any advice is general advice only. Please consider your financial situation, needs and objectives and read the Combined FSG/PDS before deciding to buy this insurance. For information on the Target Market and Target Market Determinations for this product, contact Cover-More on 1300 72 88 22. *Cancellation Plus Cover is an optional add-on: an additional premium must be paid. Eligibility criteria and limitations apply.