(CU)_COVID-19 travel insurance appears to be joining passports and sunscreen as vacation staples, as many countries require mandatory coverage in case a tourist falls ill from the virus.
Although there is cautious hope for a revival in tourism, particularly with airline booking rising in some regions, however, concerns have been raised regarding the possibility of vacationers being stranded by the virus, and thereafter being hit with large bills.
Accordingly, from Thailand to Aruba, more than a dozen countries require COVID-19 coverage for visitors.
According to experts, the market for all types of Coronavirus travel coverage lies is between $30 billion to $40 billion a year. These policies would typically cover treatment up to $100,000, and may also cover several other virus-related expenses, ranging from Coronavirus testing costs to local burial or cremation.
Although the tourism industry has been severely impacted by the pandemic, on the other hand, the demand for coverage has created opportunities for the hard-hit insurance sector and an opening to develop new products.
Countries which have mandated travel insurance for incoming visitors, either require proof of coverage or include it in their entry or visa fees.
Meanwhile, Jordan – the latest country to consider such protections – is reported to be evaluating whether to impose a mandatory flat fee for visitors. This, if imposed, will be a part of a programme initiated by the Global Rescue and the Global Travel and Tourism Resilience Council, which will cost up to $100 per person, and covers certain illnesses like COVID-19.
Nevertheless, budget travellers are now complaining about the mandatory coverage, which is increasing cost of travel. This could lead some countries to discontinue or relax the requirement as communities move away from the pandemic.
However, Taleb Rifai, former secretary general of the UN’s World Tourism Organization, and also the co-chair of Global Rescue and the Global Travel and Tourism Resilience Council, has urged countries to continue to mandate travel insurance for incoming visitors, as the vaccines “will take years” to roll out globally.
