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However, insurers say they will not be able to offer that service to those who plan to travel in the future: the European Health Insurance Card could cover the cost of coronavirus in the European Union (EU) and the cost of illness outside the EU.
Offers to insure against coronavirus
The non-life insurance company Compensa Vienna Insurance Group announced this week that it is offering COVID-19 insurance. The ban would mean financial support for the sick and hospitalized population.
“We decided to offer insurance against the new coronavirus disease in response to a need expressed by customers: as soon as COVID-19 began to spread worldwide, they began to look for insurance to provide financial assistance in case of serious illness “BSA told Compensa Vienna Insurance Group. Head of the Risk Assessment Department Linas Laugalis.
Photo from personal album / Linas Laugalis
According to him, residents can choose coronavirus insurance as an additional risk by entering into accident insurance contracts, resident property, compulsory motor liability insurance or helmet insurance.
In late April, non-life insurance market leader Lietuvos Draudimas and the country’s largest brokerage firm Aon Baltic developed coronavirus insurance and offered Lithuanian companies to insure their employees.
The new product is offered to employers, but beneficiaries become insured employees. A flat-rate benefit, as well as sick pay, is paid to an employee in case of coronavirus infection and hospital treatment.
Traveling outside the EU is the responsibility of the travelers themselves.
In case of illness in the EU, the European Economic Area or Switzerland, the European Health Insurance Card could help, according to the State Health Insurance Fund, the costs of examining and treating people with COVID-19 with public health insurance they would be covered by the Mandatory Health Insurance Fund (PSDF).
However, in third countries, the traveler must reimburse the cost of the illness. Andrius Romanovskis, director of the Lithuanian Insurers Association, said that a pandemic is an uninsured event and that it is impossible to calculate the amount of damage.
Photo by Irmantas Gelūnas / 15min / Andrius Romanovskis
“Lithuanian citizens are banned only in Lithuania, where the epidemiological situation is known, but when they travel around the world, many countries can travel, they don’t know in which country what specific epidemiological situation, they don’t know what the costs are.” There are many factors that cannot be calculated, and the principle of insurance is that we should be able to assess risk and its potential harm, “Romanovsky told BNS.
“Even if you agree to a fixed amount, for example, 3 thousand will be paid in case of illness. EUR, but perhaps the actual cost to man is 25 thousand. EUR I have no doubt that in Turkey it would take 20 or at least 15 thousand. Only in Switzerland, the study costs 1,5 thousand euros francs (1,4 thousand euros – BNS), “he added.
According to A. Romanovskis, the coronavirus insurance offered by Lithuanian companies is related to certain fixed benefits when it comes to accident insurance. This means that when a person becomes ill, they are paid a certain amount. However, in the case of travel insurance, the insurer agrees to compensate for any damage.
He said it should not be expected that he can insure against pandemic risks in the future, but he does not rule out that financial protection may be at the state level.
“Our country needs to start thinking about the risks that are unique to insuring its citizens abroad, not just in the EU countries, and bearing the cost of treatment,” he said.
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