Reasons why your travel insurance claim might get rejected

The pandemic and its recurring waves have firmly placed the glorious days of freely travelling in the rearview mirror. With restrictions coming on and off, that’s how the situation seems to be like in the near future, at least. The people have been through three unwelcome Covid waves and hence, the only silver lining is that they are now better informed and prepared. With airports bustling once again, the socially-distanced travellers are now armed with masks, sanitisers, gloves and most importantly, travel insurance to protect themselves.

While 2020 saw a near-absolute standstill in mobility, the travel sector gradually started picking up pace and even inches back to pre-pandemic levels depending on the caseload. However, the panic of contracting Covid is still a reality and so are cancelled plans. While it’s always better to have travel insurance in place, one must also know what is not covered under the policy. Even as the travel sector continues to wade through choppy waters, let us look at some exclusions that might lead to a rejection of your travel insurance claim.

Trip cancellation due to fear of Covid

For the past two years, several long-planned trips have borne the brunt of Covid-19. Often, the travellers pre-book flights and hotels well in advance and later, the situation changes due to Covid. So, if you cancel your trip or holiday due to the sheer fear of contracting Covid, chances are it won’t qualify as a valid claim and end up getting rejected. However, if the insured member actually tests positive for Covid, the claim for trip cancellation will be considered valid.

Cancellation because of personal inconvenience

If you cancel your trip for a personal reason that is not listed under your policy, it will get rejected. It could be due to a change of plans or a personal inconvenience. Unless it’s due to a natural disaster, terrorist attack, emergency hospitalisation or demise of a family member, the insurer will not settle your claim for cancellation. On the other hand, if the flight gets cancelled, that’s a valid reason for the insurance claim.

Pre-planned hospitalisation

If someone has a pre-existing condition like a heart or kidney ailment and wants to get treated abroad, travel insurance will not pay for the claims in this case. Only if the policyholder gets into an accident or any other health emergency, their hospitalisation shall be eligible for coverage. Also, one needs to properly disclose their medical condition to the insurer at the time of buying the policy. Lack of transparency can lead to claim rejection.

Quarantine and RT-PCR test expenses

Quarantine and RT-PCR tests have to be the two most common things since the pandemic outbreak. Both of them have practically become an indispensable part of one’s travel itinerary too. However, these also come under the exclusion list from your travel insurance. Quarantine and RT-PCR tests are not covered and the policyholder has to bear these expenses on their own. So, whether in the destination country or after coming back to the native country, quarantine (home or institutional) and RT-PCR tests are usually not covered by the insurance policy.

Last-minute changes by tour operators

Sometimes, your travel agency or tour operator might make last-minute changes to your trip due to several reasons. This might impact the expenses of your trip but you cannot claim them under travel insurance. Usually, the damages occurring out of changes done by tour operator are not accommodated by your insurer. However, there are some exceptions if it leads to complete cancellation. Know the exact terms of your policy at the time of purchase.

Carrying on with the trip despite Covid restrictions

In case the government has placed restrictions or guidelines with respect to Covid and after that, if you still decide to go ahead with the trip, then your claims might not be entertained. Similarly, if the borders of your destination are closed for visitors after you reach, travel insurance won’t be able to protect you. It’s essential to plan the trip keeping these pandemic regulations of both destinations in mind. However, if the Covid restrictions come into effect just before your trip starts, your cancellation claim will be honoured.

While there might be exclusions, it’s still advisable to opt for travel insurance especially as travel continues to be riddled with uncertainties. If you face an emergency in a foreign land, travel insurance is your shield. You can customise your policy as per your trip duration, demographics of the travellers and other needs to make it more comprehensive. It’s important to read through the fine print of your policy and ask for assistance from the aggregator or insurer to understand this better.

The author is Head-Health & Travel Insurance at Policybazaar.com. Views expressed are that of the author.