Travel Insurers Will Not Pay Out For Treatment (SARS)

The Telegraph (UK) ^ | 4-26-2003 | Tessa Thorniley/Backy Barrow

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Travel insurers will not pay out for treatment

By Tessa Thorniley and Becky Barrow
(Filed: 26/04/2003)

Travel insurers gave warning yesterday that they would not meet the cost of treatment for policyholders who contracted Sars if travelling to China - including Hong Kong - or Toronto, Canada.

Insurers, including Churchill, Direct Line, Thomas Cook and the Post Office subsidiary, said policy-holders who visited these areas would do so against the advice of the Foreign Office and claims would not be paid.

Columbus Direct was no longer selling travel policies or offering any form of cover for people visiting China.

The Association of British Insurers said: "If you have to travel to any of these areas talk to your insurer first. Anyone who must travel will find other insurance claims, such as having a bag stolen, would probably still be covered."

But most insurers say they will not refund cancellations because of "disinclination to travel", although travel agents and airlines are working to reschedule or reroute trips where possible.

Frances Tuke, a spokesman for the Association of British Travel Agents (ABTA), said: "In keeping with ABTA guidelines for its members, passengers travelling on package holidays with ABTA tour operators to these areas are entitled to an alternative holiday or a refund from their travel agent.

"Those travelling next month will have to wait and see if they qualify for a refund as the situation is under review daily." The full extent of the travel restrictions being imposed by British companies on employees due to the threat of Sars emerged yesterday.

Anxiety levels in this country were not helped by the news that Eva Hui, an employee of HSBC, died from Sars in Hong Kong this week. Five other employees of HSBC, Britain's biggest banking group, have caught the disease, with a further 10 to 12 unconfirmed cases.

Staff who have not been infected are being asked to work at special contingency offices near the bank's headquarters in Hong Kong to help contain the spread of the disease.

At ING Group, another bank with Far East links, any employee in this country who urgently needs to travel to Hong Kong, China or any other high risk area has to get permission from the board.

A special memo issued to staff states that they must travel to these areas only "in very urgent situations subject to approval of a member of the Executive Committee or the Executive Board".

Most companies have banned all travel plans to the high risk areas or leave it to the discretion of the employee and their family to make their own decision.

Video-links are encouraged for all meetings with colleagues or clients in Asia.

Lloyds TSB said the three staff from its London headquarters who are currently in Asia will be asked not to come into the office for 10 days when they return.

Grant Thornton, the accountants, has asked staff who are scheduled to fly to Canada shortly to change their flight to avoid Toronto, the first Western city to join the official blacklist of places deemed unsafe to visit. It has asked them to ensure they will not meet anybody who has been in Toronto in the last 10 days.

The outbreak will knock at least £10 billion off the gross domestic product of the nine worst affected Asian countries, according to Standard Chartered.