In January 2020, Mr B arranged cover for a trip to Bali, between 5 April 2020 and 17 April 2020.
In February 2020, Mr B cancelled the trip, due to the outbreak of Covid-19.
Mr B made a claim to the insurer for reimbursement of his airfares and accommodation costs.
The insurer relied on the pandemic exclusion in the policy to decline the claim. Mr B made a complaint on the basis that he arranged the policy before he was aware of the Covid-19 pandemic.
The case manager’s assessment:
The case manager reviewed the wording of the pandemic exclusion and noted that it was broad.
The pandemic exclusion included claims related to both a “likely pandemic” and “the threat” of a pandemic.
The case manager explained to Mr B that the pandemic exclusion applied to the circumstances of his claim.
The cancellation of the trip was due to Covid-19, which was a “likely” pandemic in February 2020 and officially declared a global pandemic on 12 March 2020.
Following discussions between the Case Manager and the insurer, the insurer offered to cancel the policy and reimburse Mr B’s premiums. Mr B accepted the offer in full and final settlement of the complaint.
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