Travel Insurance Plans on PolicyBazaar#1
- Individuals
- Sr. Citizens
- Students
What are CFAR and IFAR?
CFAR or IFAR are optional add-ons or upgrades while booking flights or trips. These travel insurance products provide ultimate flexibility to travellers who opt for them, allowing easy trip cancellation or trip interruption under any circumstances.
Unlike trip cancellation or trip interruption under standard travel insurance plans, these upgrades don’t require specific ‘covered’ reasons to get the benefit. For example, if you’re forced to cancel your journey because you or someone in your family was hospitalised, then that would be a covered reason for cancelling your trip.
However, if your pet falls sick or you have a mood change, it won’t be covered by the standard trip cancellation benefit. Fortunately, you now have the option of CFAR to cancel your trip for any reason, even if it's a whim.
Cancel For Any Reason or Interruption for Any Reason travel insurance usually comes as an add-on or independent product during flight or tour bookings. In India, only a few insurers offer CAFR. IFAR is available in the US, Europe, and certain Asian nations, but is not available in the Indian insurance market as of now.
CFAR vs. IFAR: At a Glance
| Features | Cancel For Any Reason (CFAR) | Interrupt For Any Reason (IFAR) |
| Timing | Applicable before your trip starts. | Applicable after your trip has already begun. |
| When is it Applicable? | Cancel at least 24 hours (or as per the T&C) before departure. | Must be at least 72 hours into the trip. |
| Best For | Fear of travel, changing plans, or personal conflicts. | Displeasure with the destination, emergencies back at home, and pet emergencies. |
Is CFAR Offered by Indian Insurers?
Yes, Cancel For Any Reason is an emerging insurance product offered by a few travel insurance companies in India and several platforms. Several banks offer CFAR benefits alongside select credit cards. These come with many benefits, like:
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Reimbursement (up to 50% - 75%) of non-refundable flight tickets
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Reimbursement of hotel costs up to a certain percentage
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Flight cancellation benefit available for both domestic and international flights
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Allows cancellation for any reason/ no reason if done within the timeline. Moreover, the benefits may vary with the provider.
Why Choose CFAR Travel Insurance?
Be it a credit card offering CFAR or a tour booking website offering no-questions-asked cancellation, you should always understand the pros and cons of paying for the CFAR add-on insurance. Here are the top three benefits of opting for CFAR:
Coverage for All Situations
CFAR covers situations that no trip cancellation benefit will cover, ranging from a change in mood to work commitments. You can easily claim a refund for scenarios like:
1. Last-minute change of mind
2. Personal commitments such as family weddings, changes in itinerary
3. Work-related reasons
4. Natural disasters, political unrest
5. Issues with the travelling partner
Flexibility
Unlike the limitations set by standard plans, you don’t need to meet hard and fast conditions to trigger flight cancellation or trip cancellation benefit with CFAR. You don’t have to lose all your money because you decided to drop your plans because of your family concerns regarding your destination or other non-covered reasons.
Protection from Financial Losses
Most CFAR travel insurance plans in India offer reimbursement in the following ways:
1. Reimbursement of up to 50% - 75% non-refundable expenses, or
2. Reimbursement of up to the stated amount (such as INR 5,000 flat for domestic trips or INR 12,000 flat for international trips)
This coverage is a great relief compared to zero reimbursement if your reason for cancellation is not accepted by your insurer. It allows significant reimbursement of your expenses and eases financial burden.
What Does CFAR Travel Insurance Not Cover?
While CFAR means cancellation for ‘ANY REASON’, certain situations will not be covered:
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Cancellation due to illegal acts/unlawful activities won’t be covered.
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If you cancel your trip due to government border closures or travel bans, the policy may not cover it. This is because these refunds are issued by the airline or the relevant authorities.
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If you purchase CFAR after a strike or natural disaster has been declared, then you may not be covered.
Things to Consider Before Buying CFAR
Any traveller can buy CFAR while booking their tickets through the platform they’re using. However, here are a few eligibility criteria they must meet:
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Most CFAR travel insurance policies require that the booking be cancelled at least 24 - 48 hours prior to departure.
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You can’t buy CFAR 24 - 48 hours before your flight or trip bookings.
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The claim must be submitted within the specified time frame. For example, it is 10 days if purchased through Policybazaar.com
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Refund eligibility applies only when the entire trip is cancelled for all the travellers.
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Refund amount from a CFAR claim will not cover discounts, promotional offers, or other travel add-on services.
CFAR and IFAR Travel Insurance: FAQs
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Q. What are the cons of buying CFAR insurance?
Ans: The only downside of purchasing cancel for any reason travel insurance is that it is costly and may increase your travel insurance premium cost. -
Q. How much money will I get back with CFAR travel insurance cover?
Ans: Realistically, you can get up to 50% to 75% with CFAR, but some platforms may cap the total amount. -
Q. When should I buy CFAR coverage?
Ans: You can buy the CFAR option while booking your tickets, but it should not be later than 48 hours before your trip. -
Q. Are there any strict rules regarding CFAR claims?
Ans: Yes, to get a reimbursement, you must ensure the timeline; you can’t buy the benefit at the last moment and expect coverage if it's earlier than the eligible cancellation window. Moreover, every insured traveller under this policy must cancel their trip to utilise this benefit.
Travel insurance companies
Aditya Birla
Bajaj General
Care
Cholamandalam MS
Digit
Future Generali
HDFC ERGO
ICICI Lombard
IFFCO Tokio
IndusInd General
National Insurance
New India Assurance
Niva Bupa
Oriental
Royal Sundaram
SBI General
Shriram General
Star
Tata AIG
United India
Universal Sompo
Zurich Kotak
