June 18, 2024

We must schedule transport, lodging, and any other expenses well in advance when arranging a trip. Additionally, it is advisable to plan ahead for unforeseen circumstances like sudden cancellations brought on by unforeseen events or losing luggage while travelling, which is why travel insurance cover was created.

Specifically, trip cancellation insurance covers the case where you are compelled to cancel your trip or reservations for circumstances beyond your control, including becoming critically ill or hurt a few days prior to your departure. You can receive reimbursement for all of your non-refundable travel expenses thanks to this coverage.

How does travel insurance operate?

In addition to dealing with the inconvenience and disruption of having to change your travel plans, having to pay cancellation costs can be a significant financial hardship. The majority of travel and lodging companies charge larger cancellation fees and offer smaller refunds the closer the departure or check-in date gets.

When completing cancellations, you must notify them as soon as possible (preferably, five days before the event) and submit supporting documentation (e.g., medical certificate, a certificate from employer). Because different travel and lodging providers have different cancellation policies, it depends on when you cancel if you will be charged a portion of the whole cost or forfeit your deposit. The full cancellation price levied by the suppliers is covered by international or domestic travel insurance.

Cancellation insurance is usable if the following circumstances apply:

  • Appears in the policy
  • After you purchased insurance
  • Is unexpected
  • Is accidental

A few instances of legitimate cancellation scenarios may include:

  • Passing away of a family member
  • Severe illness or injury (applicable to you or family)
  • Damage to the home
  • Date modifications for your paid leave
  • Natural disaster or terrorist assault at the destination
  • You’ve been refused a tourist visa
  • Having to take an exam again
  • Employment loss or employment gain
  • Identity theft or ticket fraud

The grounds for cancellation may differ depending on the policy, so be sure to take attention of the exclusionary language.

Several exclusions might include:

  • Strikes involving organised public transportation unless the insurance period begins before the strike is anticipated.
  • An airline, cruise line, or tour operator may modify or cancel your travel plans due to bad weather.
  • Changes made individually by the insured or their travelling companion to their travel plans for any reason.
  • An adverse shift in the insured’s financial situation.

Refer to the policy’s ‘General Exclusions’ as well before you buy travel insurance online.

Insuring against trip cancellation:

When making your travel arrangements, you can purchase trip cancellation insurance at the travel agency’s or the tour operator’s website. The overall cost of the insurance varies based on the coverage you choose and is proportional to the cost of the trip.

Is trip cancellation covered by travel insurance?

Yes, travel insurance does cover trip cancellation as well as medical costs, lost or stolen property, delayed flights, and emergency airlifts, provided you fall within the guidelines of the claim. The most often used travel insurance coverage is trip cancellation. You should get travel insurance as soon as you’ve made your vacation arrangements because it offers more complete protection against various financial hazards.

In summary, travel insurance policies are individualised and based on your insurance company. Therefore, it is crucial to thoroughly read the small print and understand the validity and restrictions of the coverage. While trip cancellation policies are required, flight insurance policies will provide you with better protection because they not only cover unforeseen cancellations but may also assist with making arrangements for a temporary passport in the event that you lose yours. It will make for a more relaxed journey.

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

# Visit the official website of IRDAI for further details.

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

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.

Garth Gregory

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