Visa, AIG introduce travel insurance with COVID-19 cover

MANILA, Philippines — Digital payments leader Visa and global insurer AIG Philippines Insurance Inc. launched a new travel insurance featuring COVID protection to address the safety concern of Filipinos.

Dan Wolbert, country manager for the Philippines and Guam at Visa, said the new Visa Infinite Travel Insurance Protection with COVID  coverage is a first in the local payment landscape.

“Safety is a top priority for consumers thinking about the return to travel and this insurance will provide Filipinos with added peace of mind knowing they’ll be covered for COVID-19 related expenses,“ Wolbert said.

A study conducted by Visa showed that luxury travel with 46 percent and transportation with 38 percent are the most popular searches online among affluent Filipino holidaymakers.

The travel insurance to be provided by AIG Philippines includes coverage for trip cancellations, travel inconveniences and medical expenses including COVID-19 medical expenses and allowances.

The complimentary coverage is automatic for all for domestic and international trips this month paid for using Visa Infinite credit cards issued by Citibank, EastWest, Maybank, and RCBC Bankard.

The Visa Infinite Travel Insurance Protection with COVID coverage offers reimbursements of travel accidents of up to $100,000 for international trips and $50,000 for domestic trips; overseas medical expenses including due to COVID; trip inconveniences including due to COVID; baggage protection; and travel assistance.

The COVID insurance coverage is generally treated as an exclusion in current practice by insurance providers or charged at a high premium given the risk volatility arising from a new illness.

The Inter-Agency Task Force for the Management of Emerging Infectious Disease (IATF) has issued Resolution   79 wherein outbound Filipino travelers are required to present an adequate travel and health insurance to cover disruptions and hospitalization in case of COVID infections during their trip.

Another study conducted by Visa showed that while overall travel intent is still low due to the uncertainty brought about by the pandemic, Filipinos place Japan, the US and Thailand as their top three international destinations once it is safe to travel again.

On the other hand, preferred domestic destinations include Manila, Baguio and Makati.

Likewise, a third study showed 44 percent of Filipinos surveyed said that they want to be able to travel as soon as possible, 71 percent also said that even after being vaccinated, they will still be cautious in their activities and movement.

The tourism industry had been a major contributor to the Philippines’ gross domestic product (GDP), pulling in a 12.7 percent share in 2019.

The Philippines is gradually easing domestic travel restrictions as the country reported continued decrease in new COVID cases after emerging from the third wave of infections that peaked in September.