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Published Tuesday, August 4, 2020
High cost of covid-19 travel insurance
discourages tourism, say Chambers
The National Chamber of Tourism (Canatur) and the Costa Rican Chamber of Hotels (CCH) agree that the high cost of travel insurance, offered by the National Insurance Institute (INS) , which must be purchased by all those tourists who wish to enter the national territory discourages tourism.
As part of the sanitary requirements contemplated for the reopening of international flights, the foreign tourist must get a policy that covers the costs of accommodation in case they receive a sanitary order that puts them in isolation, as well as medical expenses in case of hospitalization for contracting covid-19.
INS is the only insurer offering the policy. Premium prices range from $275 to almost $1,000, depending on various factors of the person purchasing the insurance, for example, the age, said the Chambers.
For this reason, the Chambers call for alternatives to reduce current prices.
"In the first instance, we hope that the options that tourists have to acquire a policy that addresses these situations will soon be expanded with the participation of other insurance companies," said Ruben Acon, president of Canatur. "Likewise, we request that the amounts of some of the coverage that seems to be extremely high and disproportionate, such as repatriation upon death, be readjusted."
Acon was echoed by Javier Pacheco, president of the Chamber of Hotels:
"The high cost makes it a factor that negatively affects competitiveness and sends the wrong message to the world now that flights are resuming.”
According to Pachecho, high insurance prices could affect tourism immediately and even in the next high season because foreign tourists who arrive from December to March tend to book their trip beforehand. Issue must be resolved as soon as possible, he said. "Without a doubt, this influences the assessment that the tourist will make before deciding to come to the country."
Pacheco considers that a corporate policy should be designed that allows travelers, who come to the country for a short stay, not to purchase individual insurance, which would allow them to offer more competitive rates.
According to Róger Arias, president of INS, the price of traveler's insurance will be analyzed to determine if it is possible to offer a more accessible cost of insurance.
Last week, the insurance companies that are members of the Costa Rican Association of Private Insurers, AAP, announced that they will continue their coverage to policyholders affected by the covid-19 disease.
According to the association, the insurance companies have temporarily nullified the pandemic and epidemic exclusion that most of the world's health policies include within their contractual clauses. This while facing the crisis situation in the country and the national emergency decreed by the government.
The members of AAP are Adisa, Assa, BMI, Mapfre, SM Seguros, Sagicor and Palig. These companies have specific guidelines and contractual conditions. They recommend for policyholders affected with covid-19 to immediately contact the corresponding customer service department.
The association calls on policyholders to go to health centers only in emergency cases. This will help avoid health networks to get overwhelmed. The protocol will also help avoid the spread of coronavirus and other respiratory conditions in clinics and hospitals.
Concerning other types of insurance, such as home or death, these continue to operate normally.
As for the government insurance firm, the National Insurance Institute, INS, coverage for its clients by pandemic has not been suspended. The coverage is part of the Work Risks policy.
On travel insurance, international companies are also expanding their coverage to include covid-19 as countrywide lock downs ease, reported the International Travel and Health Insurance Journal.
According to the report, with borders opening up, airlines and cruise operators planning new routes and itineraries, and hotel groups putting social distancing and hygiene measures in place ready to receive guests once more, travel insurers are starting to offer covid-19 coverage. This will give travelers the reassurance they’re looking for when it comes to protecting their health and their trip.
"Although ‘staycations’ may be the preferred holiday of choice for many this year, there is still a vast amount of people who want, or need, to venture abroad, whether for business or pleasure, and travel insurers are stepping up to meet their needs in terms of pandemic coverage, whether their trip is domestic or international," the journal said in its report.
In Costa Rica, the plans for a gradual reopening of the tourism industry, safeguarding sanitary measures, for international commercial flights.
To enter the county, tourists must comply with the following mandatory requirements:
• Have travel insurance that covers quarantine and medical expenses in case of illness.
• Confirm a negative covid-19 test taken within 48 hours before the trip.
• Complete the digital epidemiological form of Social Security. This application will be enabled in different languages.
According to the authorities, the requirements have the goal of preventing the entry of people infected with covid-19. According to the Ministry of Health report as of Sunday afternoon, 18,975 people have been infected since March.
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