Trip Cancellation Due to COVID-19: Is It Covered by Travel Insurance?

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The outbreak of the novel coronavirus pneumonia has led many Hong Kong consumers who had planned overseas trips to consider cancelling their travel arrangements. If travel insurance has been purchased, will the insurance company compensate for losses due to trip cancellation? When evaluating compensation under travel insurance, one must consider the reason for cancellation, the time of policy purchase, the travel destination, exclusions in the policy, and any special announcements from the insurance company regarding the event (if applicable). In this analysis, 10Life delves into the terms and conditions of various travel insurance policies to address common queries about trip cancellations.

General Conditions for "Trip Cancellation" Claims

The purpose of "Trip Cancellation" coverage is to compensate for financial losses resulting from a cancelled trip, primarily non-refundable expenses such as transportation and accommodation costs. Therefore, if the airline or hotel offers a refund, even if the cancellation causes inconvenience or disappointment, it does not qualify as a compensable condition.

For trip cancellations, travel insurance policies will specify which reasons for cancellation are covered, such as:

1) Suffering from a serious illness or injury before departure;

2) Severe damage to your Hong Kong residence due to fire, flooding, or burglary before departure;

3) Being required to serve as a juror or undergo mandatory quarantine as per regulations before departure;

4) Unforeseen incidents at the travel destination before departure, such as riots, natural disasters, terrorist activities, or infectious diseases.

Depending on the specific terms of each travel insurance policy, the details of the above reasons may vary. For instance, only certain policies cover trip cancellations due to unforeseen "infectious diseases":

Travel Insurance Coverage for "Trip Cancellation" Due to "Infectious Diseases" (As Per Policy Terms)
Policies Listing "Infectious Diseases" as a Covered Reason		Policies Not Listing "Infectious Diseases" as a Covered Reason
AIA	智遊保	Allianz Travel	安聯旅遊保險
AIG	旅遊智易保	AXA Hong Kong and Macau	「卓越」優遊樂
Blue Cross	Travel Smart 智在遊	HSBC - AXA Hong Kong and Macau	旅遊萬全保
BOCG Insurance	環宇智選旅遊保障計劃 (With Additional Enhanced Coverage)	Hang Seng - QBE	旅遊綜合保障計劃
FWD	旅遊保險A計劃	MSIG	iTravel Plus (Single Trip)
Starr	卓悅遊
Zurich	「易起行」旅遊保險計劃

Once you understand the specified reasons for "Trip Cancellation" coverage, it is important to pay attention to the policy exclusions. Additionally, due to the ongoing COVID-19 pandemic, several insurance companies have issued special announcements regarding the novel coronavirus, such as Zurich, BOCG Insurance, AIG, MSIG, Starr, and Allied World (as of 5 February 2020). It is expected that other insurance companies may also issue similar notices in due course. These announcements specifically address COVID-19, amending terms or adding further exclusions to limit coverage, with such restrictions taking effect from the date of the announcement.

Now, let us attempt to analyse the likelihood of compensation for "Trip Cancellation" in the following scenarios based on policy terms.

Case 1: "Trip Cancellation" Due to "Mandatory Quarantine"

If you are suspected of contracting the novel coronavirus and are forced to remain in Hong Kong for quarantine, most travel insurance policies accept mandatory quarantine as a valid reason for trip cancellation (with a few exceptions). However, you should also check if the insurance company has issued any announcements specifying restrictions on mandatory quarantine due to the novel coronavirus. If such restrictions exist, determine whether the time of your policy purchase qualifies for compensation.

Case 2: "Trip Cancellation" Due to Fear of Contracting an Infectious Disease

If you have already booked flights and accommodation but decide not to travel due to fear of infection, cancelling a trip for personal reasons is not a covered reason under the policy terms. In such cases, the insurance company will not provide compensation.

Case 3: "Trip Cancellation" Due to an Infectious Disease Outbreak at the Destination

Some travel insurance policies cover trip cancellations caused by an unforeseen infectious disease outbreak at the destination. When interpreting the terms, first, pay attention to the definition of "infectious disease," such as "any disease declared by the World Health Organization as transmissible from person to person and widely spread among the local population" (see Note 1), and take note of the policy exclusions.

If the conditions are met, consider the timing of policy purchase to assess whether the event was "unforeseen." Regarding the novel coronavirus outbreak, the World Health Organization (WHO) declared it an "infectious disease" in January 2020, after which insurance companies began issuing special announcements. If you purchased a policy afterwards and planned to travel to mainland China, the insurance company may classify it as a "known event," and compensation may not be provided.

If you are now considering cancelling a trip to a foreign destination, such as Japan, Thailand, or Taiwan (assuming the novel coronavirus had not widely spread there at the time of policy purchase), check the insurance company's special announcements to see if restrictions related to COVID-19 extend to other countries before making a decision.

Buying Travel Insurance Early is Beneficial

At present, obtaining coverage for the novel coronavirus through travel insurance is becoming increasingly difficult, as more insurance companies are issuing special announcements regarding the Wuhan outbreak, limiting coverage for those who purchase policies afterwards. Hence, the saying that "the earlier you buy travel insurance, the better" holds true. However, when purchasing a policy in the future, it is essential to understand the specific circumstances under which coverage applies and avoid making hasty purchases.

If you are still planning to travel abroad and have not yet purchased travel insurance, be sure to check the latest updates from the insurance company (if any) or even contact them directly before purchasing. Given the complexity of travel insurance, if you have any questions, you can also "ask anonymously" on the 10Life website or app to receive immediate responses from multiple licensed advisors.

Note

1: For definitions of "infectious disease" in travel insurance policies, refer to Zurich's 「易起行」, AIA's 「智遊保」, and BOCG Insurance's 「環宇智選旅遊保障計劃」.

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.

Last updated: 14 Apr 2026

10Life Editorial Team

Our team of professional content researchers focussing on insurance

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10Life Editorial Team

Our team of professional content researchers focussing on insurance

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Will travel insurance cover trip cancellations due to COVID-19?

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