Bryte Insurance has enacted the ‘known event’ clause in its terms and conditions, following President Ramaphosa’s declaration of a State of Disaster in South Africa.
Agents took to social media last week querying the change.
The insurer no longer offers cover for clients wishing to cancel their bookings due to the COVID-19 pandemic on standard policies. This is effective for all policies purchased after March 16.
Head of travel for Bryte Insurance, Anrieth Symon, says while Bryte has not changed the terms and conditions of cover under its travel insurance policies, a specific exclusion in its policy wording applies in all situations and to all policies purchased (unless Voluntary Cancellation cover was purchased). This states:
“Specific exclusions for Section 4
We do not pay for any expenses for cancelling, changing or cutting short or postponing an insured journey because of any of the following:
Any circumstances you are aware of at the time of buying your travel insurance policy that can result in you cancelling your insured journey. This exclusion will not apply if you bought the optional additional voluntary cancellation cover within 48 hours after making payment for your travel booking.”
Also, Bryte’s cancellation benefit policy wording advises that the insurer does not pay out in the following circumstances:
- A traveller receives compensation in terms of any loyalty schemes
- A traveller is compensated by any existing insurance scheme, government programme, public transport carrier, travel agent or any other provider of transport or accommodation.
Agents have alleged that Bryte is not paying out cancellation cover on policies purchased prior to March 16 where the airline or hotel has offered a voucher – even when the client has declined the offer.
“Where a customer is offered voucher/credit against their booking, this means that they have the option to change their dates of travel. Each claim continues to be assessed on its own merits and in line with the policy wording. On this basis we are not in a position to speculate on the details of the event and the claims response,” Anrieth says.
TIC’s head of travel insurance, Jason Veitch, says TIC has not changed its policy cover as there are very few new policies being issued, and removal of cover would not reduce TIC’s exposure. “We are living in extraordinary times right now. No insurance product was designed to cover a pandemic of this magnitude. Once the dust settles, it is very likely that the construction of travel insurance packages will undergo drastic changes globally,” he says.
Hollard Travel Insurance told eTNW that the COVID-19 cover it introduced on March 4 remained in place in its entirety.
