Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions he has had with the insurance industry on the validity of travel insurance for holidays cancelled as a result of the new quarantine regulations due to the covid-19 outbreak.

The Government is in continual dialogue with the insurance sector to understand and influence its contribution to handling this unprecedented situation.

Travel insurance typically applies only for losses that cannot be recovered from elsewhere, that is, after any refunds from airlines, travel, or accommodation providers. Although insurance against travel disruption due to pandemics is typically included in travel insurance policies, customers should first contact travel providers or accommodation providers for reimbursement. In the next instance, credit card providers would provide a refund under Section 75 of the Consumer Credit Act 1974 if the payment was made by credit card and cost was over £100 per unit.

If there is no still recoverable cost from these sources, a travel insurance claim may be applicable where the policy covers UK travel. Some policies will only cover foreign travel, but more comprehensive policies will also cover UK travel.

Travel insurance policies differ so, if in doubt, customers should speak to their insurer or check the terms and conditions of their policy.

We have discussed with insurers the importance of insurance cover for Covid-19 in restoring consumers with the confidence to travel again. Firms assure us that they will look to extend cover again where and when they can. They are monitoring announcements by Government and reviewing their position as the situation evolves. We will continue to monitor this situation closely.