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Does Travel Insurance Cover Trip Cancellation
Oct 6, 2022

Trip Cancellation Cover Under Travel Insurance: Find Out How Does It Work?

Planning a trip requires meticulous arrangements in terms of travel, accommodation, and designing the itinerary. While you need to manage your budget, you also must create a backup for times of emergency. A travel insurance policy is a wise investment that creates a financial safety net for unavoidable circumstances during your trip. Loss of baggage, delays in flight, and loss of documents are some important features of a travel insurance policy. However, a lesser-known feature is the trip cancellation cover which comes into play during situations where you are forced to cancel your trip for reasons that are beyond your control. Using this feature in your insurance plan, you can claim a reimbursement of all non-refundable expenses that otherwise would burn a hole in your wallet.

How Does the Trip Cancellation Cover in Your Travel Policy Work?

When an unexpected event occurs forcing you to cancel your travel plan, it is not only the frustration of a canceled trip that you have to deal with but also the financial burden of the cancellation fees that you are required to bear. These cancellation fees go on increasing as the date of travel nears. Thus, a higher cancellation fee will be applied resulting in a lower amount of refund. To claim any such cancellation fees from your insurer, you need to inform them as soon as the cancellations are finalized and also furnish documents evidencing the cancellation of your travels. This can include medical certificates or even a certificate from your employer. At the time of cancellation of your bookings, the amount that is refunded differs across travel and hotel providers. Hence, you might end up losing a specified percentage of your deposit. But with a domestic or international travel insurance plan, the trip cancellation feature ensures all such deductions in your refund are compensated for, i.e. you receive the entire amount of advances paid. *Standard T&C Apply

When is the Trip Cancellation Cover Applicable?

A trip cancellation cover is applicable as long as the reason is listed in the policy’s terms, occurs after you have purchased the policy, is beyond your control, and is an unforeseen event. Some examples of these events would be the death of the family member, severe injury or illness to the policyholder or their family members, damages to the home, change in date of your paid leave from work, visa getting declined, loss of employment, and theft of ID or travel tickets. *Standard T&C Apply

Are there Exclusions to a Trip Cancellation Cover?

Yes, a trip cancellation cover is excluded based on the terms of the insurance contract. For that, you need to thoroughly understand the policy’s terms that provide for certain exclusions. Here are some examples:
  • No insurance claim for trip cancellation is provided if there is an organized strike of public transport unless the period of insurance begins before the strike is foreseeable.
  • Change by the airline, cruise line, or tour operator due to inclement weather conditions.
  • Any personal changes in the travel plan for any reason other than those mentioned above.
  • Any adverse changes in the financial circumstances of the insured.
*Standard T&C Apply While you choose a travel policy to cover situations like trip cancellation, loss of baggage, and documents, it is essential to note the policy terms thoroughly in advance. This will help avoid surprises when it comes to raising an insurance claim for hiccups during your travels.   Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.    

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