Insurers cut cover after Sars travel warning

New Zealanders buying overseas travel have been told they will not be covered for a potentially huge medical bill if they get sick with Sars.

From 9am yesterday health insurers refused to cover travellers for the virus after the Government issued a travel warning on Tuesday for mainland China, Singapore, Taiwan, Hong Kong and Vietnam.

Insurance bought before 9am yesterday will continue to cover travellers for the virus.

Fiona Hewitt, from the Mike Henry Group of insurance brokers in Auckland, said yesterday her group had withdrawn cover for the Sars virus and it was doubtful any company or broker would now offer travellers insurance against it.

If the warning was downgraded by the Government the insurance industry would review health cover for Sars, she said.

Travellers needed to be aware that if they contracted the Sars virus overseas they would have to foot the medical bill out of their own pockets.

The bills could be huge if they were admitted to hospital, although she said some governments may meet the cost of treatment or quarantine.

Ms Hewitt said that after the Government upgraded its travel warning most insurance companies would probably withdraw cover for Sars.

The Insurance Council said a number of companies had removed cover but it was not an industry-wide decision.

Travellers who were not happy with their policies should check with a competing insurer before signing.