Going on a trip is undoubtedly one of the best ways to take a break from your busy life. Suppose you have finally planned your much-awaited trip, booked flight tickets and accommodations and even packed your luggage.
Now, what if your trip gets cancelled due to some last-minute emergency? – In this scenario, you may end up losing all the money you spent on making advanced bookings.
However, this situation can be easily avoided if you invest in trip cancellation insurance.
Don’t know what it is? – This guide is for you. Let’s discuss what travel cancellation insurance is and how it can help you out of a financial bind in case of a cancelled trip.
What is Trip Cancellation Insurance?
Trip cancellation insurance reimburses you for your expenses in case of a cancelled trip. More specifically, it will reimburse your prepaid, non-refundable and forfeited costs if you are unable to travel due to an unforeseen event that was out of your control.
Some common events include illness, injury or death of the insured, their travel companion or immediate family members.
Generally, trip or travel cancellation insurance is sold as an add-on under a travel insurance policy. However, some insurance providers also offer it as a standalone policy.
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Key Features of Travel Insurance
How Does Trip Cancellation Insurance Work?
The way trip cancellation insurance works is quite straightforward. Its coverage is a pre-departure feature where you can claim reimbursement on non-refundable expenses (e.g. unused flight tickets, hotel bookings, etc.) when your trip gets cancelled unexpectedly.
However, you can only claim coverage under cancellation reasons stated in your trip cancellation insurance. Let’s understand this with the help of the steps mentioned below:
Step-1: Purchase Trip Cancellation Insurance Policy
First things first, you buy a trip cancellation insurance cover with your travel insurance plan or as a separate policy (if available).
Step 2: Learn About Covered Scenarios
Every insurance plan has its own terms and conditions regarding covered events or reasons for cancellation. Commonly accepted reasons for trip cancellation include sickness, injury or death of the policyholder or an immediate family member.
Step 3: Provide Documents and File a Claim
If you have to cancel your trip due to the reasons covered under your policy, you can file a claim.
For this, you need to provide enough documents supporting your reason by lodging a claim. These include medical reports, death certificates, FIRs and so on.
Step 4: Get Reimbursed
After you submit your claim request, your insurance provider will verify it. Once your claim is successfully approved, you will be reimbursed for your trip cancellation expenses.
Features and Coverage of Trip Cancellation Insurance Covers
Features and coverage areas of trip cancellation insurance differ based on the type of travel insurance plan and provider. So, let us discuss the most common inclusions and exclusions –
Common Inclusions of Travel Cancellation Insurance
- Sickness, injury or death of insured individuals, their travel companion or immediate family member.
- Unforeseen damage to your house due to natural calamities.
- Restrictions on travel services are due to issues such as strikes, immigration policies, etc.
Common Exclusions of Travel Cancellation Insurance
- Pregnancy-related issues.
- Self-inflicted injuries and accidents.
- Cancellation as a result of legal notice.
- Travelling against the advice of a healthcare provider.
Why Do You Need Travel Insurance Trip Cancellation?
Trips are Expensive
Travelling is expensive, especially international trips. From flight tickets to accommodation and other activities, you have to spend a lot of money to ensure a good trip.
At this point, having trip cancellation insurance becomes indispensable. It protects your finances by helping you recover any non-refundable and prepaid costs.
Travelling with Family
Travel cancellation insurance becomes a necessity when travelling with family, especially kids. It doesn’t matter how well you plan and stay careful; there can be numerous unforeseen circumstances when cancelling the trip becomes your only option.
Such events include poor health of your family members, unforeseen accidents or mishaps, etc.
Comprehensive Coverage
Trip cancellation insurance is often provided as an add-on with travel insurance plans. In this case, you get comprehensive travel insurance coverage for trip cancellation, baggage loss, medical emergencies and much more.
Peace of Mind
By investing in trip cancellation insurance, you can plan your journey without worrying about the inevitable scenarios. Knowing that your investment is protected, you get peace of mind.
Buy Reliance International Travel Insurance with Trip Cancellation Coverage
At Reliance General Insurance, a lot of our travel insurance policy variants offer trip cancellation insurance as built-in coverage. For example, with our
international travel insurance plan, you can claim up to USD 600 for non-refundable, forfeited prepaid payments made before your departure date.
Moreover, instead of purchasing trip cancellation insurance separately, you can get comprehensive coverage for your entire journey under one travel insurance plan.
Secure your travels today with Reliance General Insurance’s travel insurance plans!
Frequently Asked Questions
Can I buy trip cancellation insurance with my existing international travel insurance plan?
Many travel insurance companies offer trip cancellation insurance as an add-on. You can easily opt for coverage during the purchase process. However, mid-policy inclusions are subject to your insurer’s and policy’s terms and conditions.
If you want to add this cover after having purchased your travel plan, we recommend contacting your insurer.
What is the best trip cancellation insurance?
The best plans offer coverage for a wide range of scenarios. At Reliance General Insurance, we offer trip cancellation insurance as built-in coverage under most of our travel insurance plans.
Does trip cancellation insurance cover cancelled flights?
Yes. Pre-booked flight tickets are generally covered under a trip cancellation insurance policy. However, you will only be reimbursed if the reason behind the cancellation falls under the inclusions of your policy.
Does trip cancellation insurance cover cancelled accommodation charges?
Yes, trip cancellation insurance generally covers a range of prepaid, non-refundable and forfeited charges. If you have pre-booked the accommodation before your scheduled departure date, your trip cancellation policy will reimburse you upon submitting the required documents.
How to buy the best travel insurance cancellation cover?
You can easily purchase a travel insurance cancellation cover online. It is recommended to buy it along with a comprehensive travel insurance plan.
To find the best policy, compare the policy features of multiple plans.
Is it mandatory to have travel insurance with trip cancellation coverage?
Travel insurance is a mandatory requirement for some destinations such as Europe, Qatar, Russia, etc. While trip cancellation insurance cover is not compulsory, it is highly recommended for the financial security it provides. For more information, get in touch with the concerned immigration authorities.
I have to cancel my trip for personal reasons. Will trip cancellation insurance cover it?
The answer depends on the exact reason for cancellation and whether or not it is covered by your travel insurance plan. Note that you will only be reimbursed for the events covered by your policy. It is advisable to get in touch with your travel insurance provider for detailed information.