Southern Cross Travel Insurance (SCTI) says covid is still frequently disrupting travel plans and showing up in hundreds of its claims, making up 11% of all payouts across Australia and New Zealand.

The coronavirus is “well and truly circulating,” says SCTI, which launched covid cover in August 2021 and includes it in all policies. 

Claims for cancellation and travel disruption due to covid average $1500.

“It looks like it’s going to affect travellers for some time to come,” CEO Jo McCauley said. 

“We’re encouraged by the leap in policy sales which reflects the desire of New Zealanders and Australians to travel again. We thoroughly recommend taking out travel insurance which will cover you for the unexpected, or covid. It’s still very much at large and impacting our customers’ plans.”

A year ago, SCTI revealed it had paid more than $630,690 for covid-related claims between January-May 2022 and that covid claims made up a third of total claims as the Omicron variant caused cancellations and compensation claims.

Around 5000 covid cases in Australia and 1500 cases in New Zealand are currently reported daily and SCTI says it has refunded policies worth millions of dollars for travellers.

The US, UK, Fiji and the Cook Islands have been key destinations for Australian travellers. SCTI says a handful of nations still have restrictions and it is best to check before booking and departure, though the US, Japan and China recently opened to non-vaccinated travellers.

“We advise all travellers to check their policy wording or to contact your insurer to see if they cover events related to covid, as we do,” Ms McCauley said.

SCTI research found 9 in 10 Aussies and kiwis want to travel in the next 12 months.

The SCTI International Comprehensive policy provides unlimited medical expenses if a policyholder is diagnosed with covid while on their journey, and up to $2500 per paying person to change travel arrangements if diagnosed with covid before departure. 

SCTI says a small percentage of claims denied were mostly travellers contracting covid in a high-risk zone, which few insurers cover. Claimants who were not diagnosed with covid and only determined to be close contacts are also not covered by SCTI.