The rising number of Covid-19 (Coronavirus) cases in the U.K. has prompted several countries to place restrictions on visitors from the U.K. entering their country. Travel insurance typically only provides protection if the FCO has issued a travel warning advising against all but non-essential travel to a foreign country. It does not usually cover situations where the foreign equivalent of the FCO has issued a travel warning against the U.K. and banned its residents from entering the foreign country. Residents of the U.K. who had travel plans to those countries (which is likely to include the USA and Singapore and already includes New Zealand, India and Oman) will not be able to travel and will be out of pocket through no fault of their own because travel insurance policies do not cover this unusual situation. As citizens of the foreign country are allowed to return to their country, not every flight will be cancelled so airline cancellation rights will not kick in. Even if they do, consequential costs such as accommodation will not be covered by travel insurance.  

If the FCO issues a travel advisory notice ruling out travel to those countries who have banned U.K. residents on the basis that U.K. residents are advised not to travel because they will be turned away at the border, travel insurance will offer protection. This is an unprecedented situation and travel insurance policy wording does not contemplate that travel could be disrupted because the U.K. is deemed to be unsafe by other countries.

U.K. residents who took out travel insurance should not be left out of pocket because the U.K. is ruled unsafe. The FCO needs to act to protect the financial interests of the 100,000s of people who will be impacted by this insurance loophole.