Director MBMG Investment Advisory
How does the coup affect your insurance?
Since the military coup d’état was announced on Thursday
22nd May, there have been varying reports and statements issued via the
numerous national consulates in Bangkok and around Thailand. In some cases,
it has been advised not to travel to Thailand, unless the reason is one of
extreme importance. Naturally, one of the biggest concerns, for both our
clients already in Thailand and those being advised not to travel, is the
validity of their health and travel insurance policies.
It is a matter of fact that many travel insurance policies have a war and
terrorism clause which voids an insurance policy if the policyholder decides
to travel to a country where war is officially declared. The difficulty is
that there are many interpretations of war and terrorism, so it is always
advisable to consult your broker or insurance policy before making the
decision as to whether to travel.
The following is a definition of war and terrorism as per a typical
international insurance policy:
War & Terrorism
We do not pay for treatment of any condition or claim arising
directly or indirectly from or as a consequence of war, acts of foreign
enemy hostilities (whether or not war is declared), civil war, rebellion,
revolution, insurrection or military or usurped power, mutiny, riot, strike,
martial law or state of siege, or attempted overthrow of government, or any
acts of terrorism, unless you are an innocent bystander. However, no cover
for war and terrorism will be provided if you remain in, or travel to, a
country, or a region within a country, that the British Foreign and
Commonwealth Office has advised its citizens to leave, and/or you travel to
a country which is specifically excluded on your certificate of insurance.
It is your responsibility to keep abreast of the British Foreign and
Commonwealth Office advice.
The above is merely an example: the wording of your policy may of course
vary dramatically. Furthermore, out of the ten government travel advice
websites accessed, at the time of writing only the Spanish foreign ministry
advised against travel to Thailand and the U.S. government suggests
non-essential travel should be deferred. The other eight (Australia, Canada,
France, Germany, Italy, New Zealand, Switzerland, UK) had issued no specific
advice, except to stay away from political demonstrations.
Having said that, this advice may change, so it is best to check the
relevant government website on a regular basis. Should you be in Thailand
while your ‘home’ government officially advises against travel, you may find
that your insurance policy is invalidated.
With that in mind, it’s advisable to check with either the insurance company
with whom you hold a policy, or your insurance broker to be sure your
existing policy covers you during the current military coup. If it does not
it may be worth increasing your coverage.
Please Note: While
every effort has been made to ensure that the information
contained herein is correct, MBMG Group cannot be held
responsible for any errors that may occur. The views of the
contributors may not necessarily reflect the house view of MBMG
Group. Views and opinions expressed herein may change with
market conditions and should not be used in isolation.
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