Travellers might not realise that yes, you can get a refund on your travel insurance policy premium due to COVID-19.
The American Express Travel annual policy I purchased to cover my two New York trips (October and December) and a trip to Europe this year actually had a cancellation clause in the fine print. Other insurance companies are working with the Australian Competition & Consumer Commission to provide refunds.
Given that a single trip policy is often over A$100 and an annual policy is over A$500, it is a refund worth pursuing.
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American Express Travel Insurance Premium Refund
I was able to get a pro rata refund for 6 months of my annual policy from American Express Travel. I had purchased the Annual Multi-Trip Policy in October 2019.
The Product Disclosure Statement specifically calls out a refund is available outside the cooling off period and ‘any premium in respect of the unexpired Period of Insurance will be refunded, provided no claim has been made or other right exercised under Your Policy.’
One quick phone call to 1800 139 149 later and the refund for 6 months premium was processed. A cancellation confirmation email was received almost immediately, and it took four business days to appear back on my credit card.
Allianz Travel Insurance Premium Refund
While getting a refund after the 14 day cooling off period is normally not permitted for Allianz travel insurance, there is a special policy in place due to COVID-19.
Policyholders who can no longer travel as planned due to the impact of the COVID-19 event can get a credit or refund for any unused travel insurance premium (for the policy period outstanding) with no administration or cancellation fees applying.
Travel Insurance Direct Insurance Premium Refund
Travel Insurance Direct is providing the option for a credit via an online form. While not an outright refund, it at least allows you to keep the value of the premium until we are able to travel again.
How To Check If I Can Get A Policy Premium Refund?
- The first step is to find your relevant Product Disclosure Statement (PDS), which is usually available as a download from the insurance provider’s website
- Use the search function (Control + F on your keyboard) to look for the term ‘refund’ in the document (usually a PDF)
- If there is no specific clause covering a pro rata refund (unlike the Amex Travel example above), it is worth calling the provider to see what options they can offer
Summary
With flights, hotels, cruises and other travel bookings top of mind, it is easy to forget that you can get a refund on your travel insurance policy also.
Please let us know in the comments below how you went with your travel insurance provider.
