May 2019: Regulatory Bulletin
Welcome to our May Regulatory Bulletin
This month we focus our update on how any Hiscox travel cover* under our Home/606 policies will be affected by Brexit.
Brexit impact on Hiscox travel policies
Could Brexit affect Hiscox travel policies*?
The outcome of Brexit itself doesn’t impact the cover provided under the Hiscox travel policy. Our cover will continue to operate as it does today and Brexit will have no bearing on the cover which we provide or the service that we offer.
However we are aware that Brexit could cause disruption to your client's travel plans and because of this we are pleased to advise that we will extend the Hiscox travel policy, free of charge and automatically, to include Brexit related travel disruption.
It is not our intention to issue an endorsement on all relevant policies to this effect now, however in the event of a Brexit related travel disruption claim our policy will respond as though Brexit has been added as a peril within our policy definition of an “insured peril”. As with other perils the following areas of cover will apply (as they apply to an “insured peril”) if your client’s insured trip is cancelled, cut short or delayed as a direct result of Brexit:
Cancellation and curtailment
If your client has their trip cancelled prior to commencement, cut short or the departure is delayed for more than 24 hours due to Brexit, we will reimburse them for amounts they have paid or legally have to pay, which cannot be recovered for their own unused travel, accommodation and pre-booked activities and excursions. If your client’s trip is cut short, we will also cover the reasonable extra travel and accommodation expenses incurred by them to return home
Missed travel arrangements
If Brexit means that your client is prevented from reaching the departure point of their scheduled transport during a trip, we will pay reasonable and necessary extra travel and accommodation expenses to enable them to continue or complete their journey
If Brexit means that your client’s scheduled transport is delayed for more than eight hours at the start or end of their trip, we will pay the amount specified in their policy schedule for the period of the delay
Enforced extended stay
If Brexit means that the departure date of your client’s scheduled transport, at the end of their trip is delayed for more than 24 hours, we will reimburse them for reasonable extra accommodation expenses. If the departure date of their return journey is delayed for more than 72 hours we will reimburse them for reasonable extra travel expenses that they incur to return home
All of the terms, conditions, exclusions and amounts insured detailed within your client’s policy documentation also apply to this extended cover including the requirement that they should in the first instance contact their tour operator, travel association or transport company or financial protection scheme for assistance and also for reimbursement if they have agreed to or are obliged to pay.
*This update applies to the Travel sections within the following Hiscox home policy wordings: Hiscox 606 Home Insurance (ref: 6050 (08/17), Hiscox 606 Insurance (ref WD-APC-UK-BROKER 607 (1) 18968 05/18) and Hiscox Home Insurance (ref WD-APC-UK-BROKERHOME (1) 18967 05/18)