Travel Insurance Plans on PolicyBazaar#1
- Individuals
- Sr. Citizens
- Students
What is a Trip Cancellation?
Trip cancellation is an insurance benefit applicable pre-departure. It compensates you for non-refundable and prepaid travel expenses in case you are forced to cancel your trip for certain reasons. This benefit is applicable only if your trip is cancelled before it begins. Here is a quick overview of this benefit:
| Feature | Description |
| Applicable Period | Between Policy Issuance and Trip Commencement. |
| Eligible Costs | Non-refundable Flights, Hotels, and Visa Fees. |
| Primary Trigger | Sudden Medical Emergency, Natural Disaster, or Burglary at home. |
| Maximum Limit | Up to the 'Trip Cancellation' Sum Insured in your Schedule. |
Most travel insurance companies in India provide coverage for trip cancellation if you meet the following criteria:
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It should be an unforeseen reason which is unexpected and beyond your control. This can be a sudden medical emergency, death of an immediate family member or a natural disaster, etc.
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You will only be covered for prepaid and non-refundable expenses such as prepaid tour packages, flights and hotel bookings. Fully refundable airline tickets are not refunded by the insurer, and you must claim reimbursement from the airline itself.
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You can claim the trip cancellation benefit only during the 'pre-trip' window. This timeline starts from the moment your travel insurance policy is issued and ends when you check-in your luggage or clear immigration for your departure.
What is Covered or Not Covered under Trip Cancellation Benefit
What is 'Covered' Cancellation under the Trip Cancellation Benefit?
Insurers only provide this benefit for 'covered' reasons. These are the common reasons, however, they may vary from insurer to insurer:
Medical Emergencies
Death, serious injury or sudden sickness of the insured traveller, their travelling companion or an immediate family member.
Government/Regulatory Reasons
If a country's government has issued a travel advisory or imposed a compulsory quarantine after the policy purchase.
Personal Property Crises
In case your primary residence is severely damaged due to a fire, flood or a burglary before your departure. Most insurers allow this within 7 days before departure.
Employment Changes
A few insurers also offer trip cancellation benefit in case you have to cancel your trip due to an unexpected job transfer or termination.
Inclement Weather
Weather events such as natural disasters that force your common carrier (airline/ship) to stop all services for at least 24 hours.
When Can You Not Claim the Trip Cancellation Benefit?
Many unforeseen circumstances can force you to cancel your trip, but not all of them are covered by travel insurance. Here are some nuances and hard limitations that you must keep in mind, as you can't get the trip cancellation benefit for these:
Cancelling if you fall sick because of a pre-existing disease is not covered. However, if you have a pre-existing disease (PED) add-on, then some insurer can cover the cancellation.
Standard travel insurance policies don't cover trip cancellation if your visa is rejected. However, insurers also offer a Refund of Visa Fee and Visa Refusal add-on, which covers you for the fees lost and, in some cases, trip cancellation.
Cancelling your trip because of work pressure/ change in mood etc., is not a valid reason for triggering the trip cancellation benefit.
How to Claim for Trip Cancellation
To claim trip cancellation, you must provide proof of valid reason which your policy covers. These are some important documents other than the usual claim form, policy details, etc.:
You must provide an official proof from a licensed doctor to explain why your trip was cancelled.
You must provide a cancellation confirmation from your airline and hotel to show any cancellation charges that were deducted from your pre-paid costs. Your insurer will reimburse you after deducting any refund amount you got from them.
If you had to cancel your trip because of a family member's illness, you must provide a proof of relationship such a passport or a birth certificate.
Your insurer will ask for a 'Period of insurance' or the 'Policy Issuance Date' to confirm that your trip was cancelled before the date of trip commencement.
Trip Cancellation: FAQs
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Q: Can I claim trip cancellation benefits if my pet falls ill?
Ans: Unfortunately, no. Standard travel insurance plans only offer this benefit if a family member falls ill. As per the policy wording, the definition of a ‘Family Member’ is limited to human members only. -
Q: Can I get a trip cancellation benefit if my airline cancels the flight?
Ans: No. Your airline is responsible for refund, which is usually limited to ticket fare. Trip cancellation benefit is only applicable if you are forced to cancel your journey under covered reasons, such as hospitalisation or death in family. -
Q: How is trip curtailment different from trip cancellation?
Ans: Trip cancellation is a benefit applicable even before your trip has begun. Curtailment is when you’re already on your trip abroad and you have to return home early. It covers for the unused portion of your trip expenses.
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
