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Varun and Shivani are about to go vacationing with their two kids. They plan to go skiing and accordingly make bookings in a resort which includes skiing package. Three days prior to the flight, the kids fall sick following which they cancel their trip.
With trip cancellation coverage, Varun and Shivani do not need to fret about losing the money they spent on booking flights and accommodation (with the skiing package).
To cater for travel emergencies arising from flight delays, medical crises, loss of baggage and passports, trip cancellation coverage Is standard across travel plans.
Trip cancellation coverage
The trip cancellation coverage is essentially a pre-departure feature. In this, the travel insurance provider reimburses the cost of the non-refundable and pre-paid expenses like unused flight tickets and hotel bookings. Note that the coverage for trip cancellation can be claimed only for reasons that are mentioned in the policy document.
For a travel insurance plan to cover cancellation of a trip for any reason whatsoever, there are specific plans under the label “cancel for any reason travel insurance”. Depending upon the terms and conditions of the policy, the cover can also reimburse the single supplement fee (the termination of the trip of the insured co-traveller only).
Commonly included reasons
Before signing the papers, you must read your travel insurance policy document thoroughly to understand all the inclusions and exclusions well. Common trip cancellation scenarios covered include personal injury, illness, bad weather, natural calamity, terrorist attack at the destination etc.
Several travel insurance policies also cover other personal crises, like a death in the family or other familial commitments (has to be mentioned in the plan), schedule mismatch at the workplace, new joining, assaults on you or your travelling companion.
With trip cancellation coverage, you will be able to recover substantial pre-paid out-of-pocket expenses, if you happen to terminate your trip.
Explore more Travel Insurance Features.
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