Travel Insurance Consultants (TIC), the largest travel insurance company in South Africa, is the latest travel company to respond to the Russia-Ukraine crisis, and has suspended all travel insurance policies for Russia, Ukraine and Belarus until further notice.
The change came into effect last week and TIC said its systems had been updated to prevent any future policies from being issued. “Military action in these territories or the proximity and involvement of these territories in military action places policyholders at risk. Our organisational values necessitate that we cannot knowingly insure persons looking to enter and operate in territories where conflict is either known or deemed to be imminent.”
TIC said it would engage policyholders in those territories, as well as travel agents, to update them on the situation. It plans to continue to evaluate the risk associated with those destinations and update the market accordingly.
Knock-on effects
Russia’s military strike has affected many travel-related services in the region. “Many travel services to these areas have already been suspended, or are being drastically curtailed. With the suspension of international payment systems, the provision of services to these territories will become increasingly difficult. The longer this conflict continues, the harder it will become to provide service to clients,” said the company. (See also Shockwaves ripple out from Ukraine war - Travel News, March 14, 2022)
There is often confusion over the definitions of war, terrorism, fighting, unrest and other conflict terms. Travel News asked TIC for some details on how this affects cover.
TIC Manager - Sales & Marketing, Simmy Micheli, clarified. “TIC provides medical cover, and accidental death or permanent disability cover if a traveller is caught in the middle of unexpected fighting relating to war.”
However, there are different conditions when destinations experience an act of terrorism. In such cases, an insurer may, under specific circumstances, provide cover when there is an act of terrorism up to 14 days prior to departure and, as a result, the client cancels their trip.
Travellers can also find more information about cancellation cover on any travel insurance policy wording. Micheli stressed: “The cancellation cover on any travel insurance policy lists the events you are insured for. Any event not listed is not insured.” For example: An act of terrorism in the city one is travelling to is an example of an insured event – war breaking out is not.”
Similarly, a pandemic is also not a listed event and, therefore, is also an exclusion on TIC policies. Micheli clarified: “Any trip disruption costs related to a pandemic including a travel ban are excluded from cover.”
