Travel Insurance with Flight Cancellation Cover

Travelling is an exciting and enriching experience that allows us to break away from our daily routines. Most people explore new destinations during their holidays. However, when it comes to travelling, unforeseen circumstances can sometimes disrupt our plans, leading to flight cancellations.

It is essential to have appropriate travel insurance coverage to mitigate the financial losses and inconveniences caused by such cancellations. With travel insurance for flight cancellation, you can make sure you’re protected from these losses. Travel insurance protects you when you need to cancel your trip for various reasons. Here, we can help you understand this insurance plan better. We will also discuss the inclusions for flight cancellations in this insurance.

What does trip cancellation insurance cover?

Flight cancellation coverage provided by travel insurance protects you from financial losses when you need to cancel your trip due to a specific reason. Flight cancellation insurance covers:

• Death, illness, or accidents:If you, your co-traveller, or other family members fall ill, meet with an accident before the scheduled departure date, or anyone in your family passes away, you will be eligible for reimbursement of the non-refundable portion of your flight and accommodation expenses. It ensures you do not get burdened with significant financial losses due to unforeseen circumstances.
• Reimbursement of expenses:The travel insurance policy will reimburse the unused and non-refundable portion of your flight and accommodation expenses. It means that the money you invested in booking your flights and accommodation will get covered up to the specified limit in your policy schedule. Knowing that your travel investment remains safeguarded provides financial protection and peace of mind.

Exclusions under trip cancellation insurance

While trip cancellation insurance offers extensive protection, certain scenarios are typically excluded:

• Pre-existing medical conditions: Cancellations due to known medical issues existing before purchasing the policy are often not covered.
• Pregnancy-related issues: Cancellations arising from pregnancy or childbirth, unless complications occur that are unforeseen and medically certified.
• Airline cancellations: If the airline cancels a flight for operational reasons, the responsibility often lies with the airline to provide compensation or alternatives.
• Government travel bans: Cancellations due to government-imposed travel bans or advisories, including those related to pandemics, may not be covered.
• Cosmetic or elective surgeries: Cancellations due to non-essential medical procedures planned before the trip.
• Financial distress: Personal financial issues, such as insufficient funds, are not valid reasons for claims.
• Lack of documentation: Failure to provide necessary documentation to substantiate the claim can lead to denial.

How does trip cancellation insurance work?

Trip cancellation insurance reimburses you for prepaid, non-refundable travel expenses if you have to cancel your travel plan due to covered reasons. Here's how it works:

1. Policy purchase: Acquire a single trip travel insurance policy that includes trip cancellation coverage, either as a standalone feature or as part of a comprehensive plan. 
2. Understanding covered reasons: Familiarise yourself with the reasons for cancellation that your policy covers. Commonly covered reasons include medical emergencies, death, natural disasters, or other unforeseen events, as the policy outlines.
3. Trip cancellation: If an unforeseen event necessitates cancelling your trip, immediately inform all relevant parties, such as airlines, hotels, and tour operators, to cancel reservations and request any possible refunds.
4. Filing a claim: Notify your insurance provider about the cancellation immediately. You'll need to submit a claim form and supporting documentation.
5. Claim processing: The insurance company will assess your claim based on the provided documentation and the policy's terms. Upon approval, you'll receive reimbursement for the covered non-refundable expenses up to the policy's limit.

How to file a claim for flight cancellation insurance?

Filing a claim involves a systematic approach:

1. Immediate notification: Inform your insurance provider as soon as you decide to cancel your trip for a covered reason. Prompt notification is essential, as delays can affect claim eligibility.
2. Gather documents: Collect all necessary documents supporting your claim:
• Medical claims: Obtain medical reports, doctor's notes and hospital bills
• Death-related claims: Secure death certificate and proof of relationship
• For cancellations caused by natural disasters or terrorist incidents- Official reports from relevant authorities
• Work-related cancellations- Submit employer letters
• Theft or other criminal incidents leading to trip cancellation- Obtain police reports
3. Complete claim form: Fill out the insurance company's claim form accurately, providing all required information.
4. Submit the claim: Send the completed form along with all supporting documents to the insurance provider through the designated channels, which may include email, postal mail, or online portals.
5. Follow up: Keep track of your claim's status. Maintain open communication with the insurer and provide any additional information if requested.
6. Claim resolution: Upon approval, the insurer will disburse the eligible reimbursement. If denied, they should provide a clear explanation, and you have the right to appeal or seek further clarification.

Conclusion

Travel insurance with flight cancellation coverage is integral to smart trip planning. It protects you from financial losses if you cancel your trip.  With flight cancellation coverage, you can get reimbursed for the non-refundable portions of your flight and accommodation expenses. It will allow you to recoup your investment and plan for future travel. However, reviewing the policy’s terms and exclusions is essential to understand what gets covered and what doesn’t. By including flight cancellation coverage in your travel insurance, you can confidently embark on your trips, knowing you will get coverage for unexpected disruptions.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.