British Insurers Extend Cover For Travelers Stuck Abroad

By Lucia Osborne-Crowley
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Law360, London (April 3, 2020, 1:13 PM BST) -- Insurers will give travelers stranded abroad an extension to their emergency medical cover during the COVID-19 pandemic, a body representing the sector has said.

The Association of British Insurers said Thursday that its leading members will extend the 30-day period that usually applies to travelers stuck overseas to at least 60 days during the coronavirus outbreak, which has now infected more than a million people worldwide.

"ABI members are committed to supporting their customers who are stuck abroad at this difficult time," the body said.

Most insurance gives travelers access to emergency medical care for 30 days if they are trapped by travel restrictions, the ABI said. But it said its members will "look to" extend this to a minimum of 60 days while the public health crisis develops.

Consumers will have to make every effort to return if they are to qualify for the additional cover.

The ABI also said it approves of the government's plan to work with airlines to help repatriate British citizens who are stranded overseas as the coronavirus lockdown continues.

The government announced in February that it would provide up to £75 million ($92 million) to allow special charter flights to bring back U.K. residents.

The decision to extend some travel policies comes as the travel insurance industry struggles with far-reaching disruption caused by the outbreak. Almost half of major insurers in the U.K. have pulled travel insurance products amid the chaos, a consumer rights group said Wednesday.

Lobby group Which? found that 31 in 75 of Britain's major insurers have suspended the sale of travel cover to new customers. Leading insurers such as Aviva, LV= and Direct Line are among those that have pulled products, Which? said.

Regulators, lawmakers and lobby groups have expressed concerns about how insurers are handling the crisis.

The Central Bank of Ireland has instructed insurers to prioritize the interests of consumers after being called on to intervene by a consumer rights group.

Lawmakers have urged insurers to clarify their positions on coverage during the outbreak, and the Financial Conduct Authority wrote to insurers this month urging them to show fairness and flexibility when assessing claims connected to coronavirus.

--Additional reporting by Najiyya Budaly. Editing by Ed Harris.

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