Following a recent Brexit-related vote in which UK Prime Minister Theresa May suffered a historic defeat, a ‘no-deal’ scenario seems ever closer – how will travel insurance be impacted?
The Association of British Insurers (ABI) leapt to attention following the vote, releasing comprehensive guidance on the potential implications of a no-deal Brexit on both travel and motor insurance. British travellers will hopefully be at least slightly reassured that even if the European Health Insurance Card (EHIC) system ends up falling by the wayside, travel insurance will still work as before.
“As it looks increasingly possible that a ‘no deal’ Brexit may happen, we want all insurance customers to know the facts about what this means for them,” said Huw Evans, Director-General of the ABI. “Despite uncertainty about the EHIC, I want to reassure people that their travel insurance will continue to operate in the normal way when it comes to medical expenses, as emergency medical treatment is a standard feature. Customers should always double-check their travel insurance policy meets their full needs.”
Evans echoed calls from other figures in the insurance, financial services and other industries for the UK Government to agree ‘an orderly way forward’ with the European Union, as a no-deal Brexit would be bad both for insurance customers and the wider economy.
Additionally, the ABI advises British motorists planning to drive in the EU that they will need to secure a Green Card from their insurance provider; this documentation will act as proof of valid third-party motor cover while driving within territories that operate under this system. This could be a potential side-effect of a no-deal scenario. Allianz is among the insurers that have already started preparing for the possible requirement for Green Cards.