Taiwanese insurers suspend travel cover sudden illness clause

Several insurance companies in Taiwan are suspending the sudden illness clause in their travel insurance policies, meaning policyholders will not be compensated if they are infected with COVID-19 while travelling overseas.

Cathay Century Insurance said it will stop selling travel medical insurance for sudden illnesses, followed by Chung Kuo Insurance, Union Insurance and Tokio Marine Newa Insurance issuing their own suspensions, Taiwan’s Public Television Service reported.

“They’re probably sick of explaining the difference between sudden illnesses and a COVID-19 diagnosis to customers, so they’ve decided to stop selling this type of insurance altogether,” insurance agent Lu Yi-Ching told PTS. “People can buy (travel insurance) for a few hundred New Taiwan dollars for a NT$20 million policy. If they really get hit with a sudden illness, the payout may be NT$1-2 million.”

Another insurance agent said there is some difficulty in determining whether a COVID-19 diagnosis counts as a sudden illness. As such, insurers would rather suspend such policies to avoid disputes with customers. However, accident and other forms of insurance are still being sold.

The Travel Quality Assurance Association said this will make people more hesitant about travelling overseas.

“Travelers will incur a great deal more risk when they travel overseas in the future,” said Lee Chi-yu, a spokesperson for the Travel Quality Assurance Association. “This may require some coordination down the line.”

Last month, the Tourism Bureau requested insurers to sell “epidemic prevention travel insurance” for people that get diagnosed with COVID-19 while travelling overseas. The Non-life Insurance Association said this is not feasible as insurers cannot properly assess the risks involved.