Trip Cancellation Coverage in Travel Insurance

• Written by Bhawika Khushlani

  Reviewed by Rashmi Rai

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Rahul, Aayush, and Mehek had always dreamed of visiting Warner Bros. Studio in London to see the wizarding world together. As the three siblings grew up and had reputable jobs, they finally decided to fulfil their childhood dream. All three of them contributed their savings and planned a budget-friendly trip. They found good hotels at affordable rates and booked their tickets. But, they skipped buying a travel insurance plan as the three were in good health to travel.

While the preparations for the trip were going as planned, an unfortunate accident with Rahul led them to cancel their trip two days before their departure! Let’s consider a situation: What if they bought an international travel insurance plan? Would they become eligible for coverage for travel disruptions even if the accident happened before the trip?

Yes, the trip cancellation coverage benefit will surely reduce their pocket stress. How? Let’s understand this in detail.

What is Trip Cancellation Coverage?

If the three siblings had a trip cancellation insurance, they would be entitled to get coverage for this unforeseen accident!

Trip Cancellation Insurance covers the non-refundable expenses you incur when booking airlines, cruises, hotels, etc., in case you need to cancel your trip due to an unforeseen crisis.

While some travel insurance companies charge an additional premium to offer accommodation and flight cancellation reimbursement coverage, the Explore- International Travel Insurance Plan from Care Health Insurance offer coverage for trip cancellation as a policy benefit.

Travel Insurance Cancellation Reasons: What is Covered?

When an insurer offers trip cancellation coverage under their travel insurance policy, they typically provide financial backup for the non-refundable bookings incurred because you cancelled your trip due to unforeseen reasons.

Here are a few reasons that qualify the eligibility criteria for trip cancellation reimbursement under most travel insurance plans.

• Unforeseen medical emergencies of the insured or the ailment or death of an immediate family member.
• Natural calamities in the country you are about to visit.
• Terrorist attacks or riots in the country you are supposed to visit.
• Passport loss at least ten days before leaving for the trip.
• If the government regulates any advisory to not to travel.

All these reasons for cancellation may entitle you to claim coverage under your travel insurance plan.

Trip Cancellation Reasons: What is Not Covered?

Take a look at the circumstances that won’t be covered under trip cancellation insurance:

• Trip cancellation due to a pre-existing disease.
• Foreseeable last-minute cancellation for situations like pregnancy or childbirth.
• Any natural calamity not declared by the appropriate government authorities. 
• Trip cancellation due to cosmetic surgery.
• Trip cancellation due to any surgery not mentioned in the policy’s terms.
• Cancellation due to alcohol or drug misuse.

Will Travel Insurance Cover Cancellation due to Illness?

Yes, if the illness is covered under the international travel insurance plan, you can file a claim for non-refundable bookings. Some specific diseases and injuries covered under the plan are:

• Illness or injury of the insured or travelling companion
• Illness or injury of an immediate family member
• Mental health conditions
• Death
• Quarantine

Can Trip Cancellations for all Reasons be Covered?

Not all insurance companies will provide reimbursement if you do not qualify for the listed reasons for cancelling the trip. However, if you are sceptical about your trip, you can ask your insurer to provide you with an upgraded plan that provides reimbursement for cancellation due to any reason.

Are Trip Cancellations and Trip Interruptions the Same?

While trip cancellations and trip interruptions may be used interchangeably, they have different meanings in terms of a comprehensive travel insurance plan.

Emergency trip interruption in a travel insurance plan reimburses you for the expenses incurred while you cut your trip short due to an unforeseen incident. The benefit reimburses you for the expenses already incurred for the remaining portion of your journey.

On the other hand, trip cancellation coverage benefits are provided when the trip has been cancelled before even starting the journey due to some unforeseen circumstances.

How Does Travel Insurance Protect Your Trip?

Ever been in a situation like Rahul, Aayush, or Mehek?

If a medical emergency necessitates a trip cancellation, your domestic health insurance may cover the expenses incurred during the treatment. However, you may still face financial loss if you have to pay for a non-refundable booking that you’ve made for your trip!

Here, International travel insurance plan from Care Health Insurance comes to your rescue by offering coverage for non-refundable flights and accommodation bookings that you made beforehand. You have already taken the right step by being covered with trip cancellation benefits!

>> Also Read: What is Flight Cancellation Insurance?

Disclaimer: Plan features, benefits, coverage, and claims underwriting are subject to policy terms and conditions. Kindly refer to the brochure, sales prospectus, and policy documents carefully.