Travel insurance offers several benefits for travellers during domestic and international trips. One essential feature is trip cancellation coverage, which helps minimise the financial loss when a trip cannot proceed as planned.
Understanding how travel insurance trip cancellation cover works helps travellers make a claim on time and avoid financial distress.
What is Trip Cancellation Insurance?
Trip cancellation insurance pays or reimburses you for prepaid and non-refundable expenses in case you have to cancel your trip due to an emergency. The policy may cover expenses up to the specified limit, as outlined in your plan.
Several insurance companies also offer trip cancellation coverage as an additional coverage to the base plan. Policy buyers can get specific additional coverage, like flight travel insurance for flight delays or cancellations.
Reasons For Trip Cancellations
Personal Emergency: AFamily member’s demise or any other personal crisis counts as a personal emergency. Policyholders can file a claim under such circumstances; however, proper documentation needs to be provided.
Natural Disasters: Natural disasters, such as earthquakes, floods, storms, and cyclones, can also disrupt travel plans. In such events, trip cancellation insurance can cover non-refundable expenditures, such as advance hotel bookings and connecting flight tickets.
Medical Emergency: Any medical emergency, such as illness or injury, affecting the travellers or their family members, can result in trip cancellations. Suppose a traveller injures their ankle before the trip; then the policy will reimburse for all the unused tickets and other bookings.
Civil Unrest or Terrorist Activity: If the selected travel destination is experiencing civil unrest or terrorist activities, the policyholder can file a trip cancellation claim and be reimbursed for unused bookings.
How to File a Trip Cancellation Claim?
If you experience any of the above-mentioned emergencies or events, you can follow the steps given below to file a trip cancellation claim.
Buy the Trip Cancellation Policy
The first step is to purchase trip cancellation insurance, either as part of the base travel insurance plan or as a separate plan, if available.
Understand the Covered Situations
Every travel insurance policy has specific terms and conditions that outline the coverage provided. The most common trip cancellation coverage includes situations such as medical emergencies, natural disasters, and man-made disasters. Understand whether or not your type of claim issue is covered under the plan before filing a claim.
Submit Documents and File Claim
If you have to cancel your trip due to an emergency covered under your trip cancellation coverage, you can file a claim. To file a claim, you need to submit relevant documents and provide the reason for cancellation. The documents include medical reports, FIRs, death certificates, etc.
Get the Reimbursement
After the claim is submitted, the insurance agent will verify the documents. Once the claim is approved, your reimbursement amount will cover all the trip cancellation expenses.
Exclusions of Trip Cancellation Insurance
There are certain situations under which trip cancellation insurance will not provide cover.
- Depression, nervous system diseases, anxiousness, drug or alcohol addiction or overdose-related issues are not covered under the insurance.
- Pregnancy and related issues are not covered.
- The medical cost of cosmetic surgery or procedure for a cause beyond an accident will not be covered under the travel insurance policy.
- If there was a notice about riots or labour issues at the time of policy purchase, damages due to these will not be covered.
- Mistakes made by the transport service provider or its representative while making transportation bookings will not be covered.
- Medical issues caused due to pre-existing conditions and flying against the doctor’s advice will not be included in travel insurance coverage.
- Self-inflicted injuries will not be covered under the policy.
TATA AIG Trip Cancellation Benefits
By now, you must have understood the importance of having trip cancellation insurance. This protection safeguards you against financial loss due to trip cancellation or interruption.
If you are looking for reliable trip insurance, TATA AIG travel insurance with trip cancellation benefits is a premium choice. They offer you a range of customisable and affordable travel plans, for which you do not require medical tests. With them, you get coverage for non-refundable trip cancellation expenses like travel ticket expenses or accommodation costs.