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Travel Insurance Cancellation Policy

Optional add-ons are available for standard insurance plans. These additions extend beyond typical coverage for flight delays or cancellations.

  • 22 Jun 2023
  • min read

Travel insurance cancellation policyoffers individuals reimbursement for expenses that cannot be refunded or deferred if they cannot proceed with their trip for various reasons. Some travel insurance providers provide standalone plans specifically designed for trip and flight cancellations. Optional add-ons are available for standard insurance plans. These additions extend beyond typical coverage for flight delays or cancellations.

Cancellation Policy For Travel Insurance

When unexpected circumstances force you to cancel a trip, you often face cancellation fees. Most travel and accommodation providers impose higher cancellation fees the closer you get to the departure or check-in date, resulting in a lower refund. To mitigate these costs, contacting the providers as soon as possible after finalising your cancellation is recommended. This can be done ideally within five days of the event by providing appropriate documentation.

Travel Insurance cancellation policy vary from provider to provider. Depending on when you cancel, you may have to pay a percentage of the total cost.

For the trip cancellation policy to be valid, you must find the reason for cancelling listed in the policy. The event should occur after you purchase the insurance; it should be unforeseen and unintentional. Valid scenarios may include the following:

  • the death of a family member
  • severe injury or illness affecting you or your family
  • damage to your residence
  • changes to your paid leave dates from work
  • terrorist attacks or natural disasters at your travel destination
  • denial of a tourist visa
  • having to reappear for an exam
  • loss of employment or new employment
  • theft of ID or travel ticket

How does trip cancellation insurance work?

Following are a few of the popular ways in which your policy works.

  • The primary expenses incurred when cancelling a trip typically include flights and hotel reservations. However, the right travel insurance coverage that includes flight and travel cancellation cover benefits can shield travellers from significant financial burdens.
  • Trip cancellation insurance can also prove valuable in situations where delays occur during the trip itself. For instance, if a flight experiences delays due to technical issues, unexpected strikes by airline staff, or natural disasters, travellers may find themselves incurring additional costs for meals or accommodations. With flight delay insurance, the insurer will reimburse travellers for these expenses.

Note: You can purchase a cancellation policy at the travel agency or tour operator’s website when booking your trip.  The insurance cost is typically a percentage (ranging from 4% to 12%) of the total expense of the trip. The price also varies based on the policy you select.

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