TRIP CANCELLATION INSURANCE

Trip cancellation insurance is a type of travel insurance that provides financial protection if you need to cancel your trip unexpectedly. This coverage reimburses you for prepaid, non-refundable travel expenses, ensuring you don’t lose money if your plans fall apart.

The global travel insurance market was valued at around $19.1 billion in 2020 and is projected to reach $39.3 billion by 2027. According to industry reports, approximately 30% of travelers purchase travel insurance, with trip cancellation being the most common claim.

The primary reasons for trip cancellations include illness, severe weather, work conflicts, and family emergencies.

 

Why Should You Buy Trip Cancellation Insurance?

• Financial Protection

Protects your investment in case you cannot travel due to unforeseen circumstances.

• Peace of Mind

Provides reassurance that you won't lose money on prepaid expenses.

• Comprehensive Coverage

Often includes trip interruption, medical emergencies, and lost baggage.

• Flexibility

Allows for reimbursement of a wide range of prepaid expenses, including flights, hotels, tours, and more.

 

Top 5 Best Trip Cancellation Insurance Providers in India and Their Coverages

1. Tata AIG Travel Insurance

• Coverage

Trip cancellation, trip interruption, medical emergencies, evacuation, loss of baggage, and trip delay. Comprehensive global coverage with extensive network support.

 

2. ICICI Lombard Travel Insurance

• Coverage

Trip cancellation, medical expenses, trip delay, loss of passport, and personal liability. Covers trip cancellations due to natural disasters and terrorist attacks.

 

3. Bajaj Allianz Travel Insurance

• Coverage

Trip cancellation, medical expenses, trip interruption, loss of baggage, and personal accident. Customizable plans with high coverage limits and extensive add-ons.

 

4. HDFC ERGO Travel Insurance

• Coverage

Trip cancellation, medical emergencies, trip interruption, evacuation, and loss of baggage. Affordable premiums with extensive worldwide coverage.

 

5. Reliance Travel Insurance

• Coverage

Trip cancellation, trip delay, medical expenses, loss of baggage, and emergency evacuation. Covers trip cancellations due to illness, injury, and adverse weather conditions.

 

Trip Cancellation Insurance Inclusions

• Illness or Injury
• Death
• Weather (Cancellations due to severe weather conditions making travel impossible.)
• Jury Duty or Court Orders (If you are summoned to jury duty or required to appear in court.)
• Job Loss (Coverage if you or your travel companion lose a job and can no longer afford the trip.)
• Travel Provider Issues (airline, cruise line, tour operator) goes bankrupt.

 

Trip Cancellation Insurance Exclusions

• Pre-Existing Conditions

Many policies do not cover cancellations due to pre-existing medical conditions unless you purchase a waiver.

• Change of Mind

Deciding you no longer want to travel is not covered.

• Financial Default

If a travel provider goes bankrupt but isn’t listed as an approved provider in the policy.

• War or Terrorism

Some policies exclude cancellations due to war, terrorism, or civil disorder.

• Pregnancy

Generally, cancellations due to normal pregnancy are not covered.

• Illegal Activities

Any cancellations due to illegal acts or criminal behavior.

 

Read More | Travel insurance for children under 18

 

What Expenses Are Covered by Trip Cancellation Insurance?

1. Airline Tickets

If you need to cancel your flight due to a covered reason, the cost of your airfare is reimbursable.

2. Hotel Reservations

Non-refundable hotel bookings can be covered if you have to cancel your stay.

3. Cruise Costs

If you booked a cruise and need to cancel for a covered reason, the cost of the cruise can be reimbursed.

4. Tour Packages

Prepaid tours and excursions are usually included in the coverage.

5. Event Tickets

Tickets for events like concerts, theater performances, or sports events may be covered if they are part of your travel plans.

6. Rental Car Reservations

Non-refundable car rental bookings can also be included.

7. Train Tickets

Prepaid rail tickets are generally covered under trip cancellation insurance.

8. Travel Insurance Premiums

Some policies may reimburse the cost of the travel insurance premium if you need to cancel.

9. Service Fees

Certain service fees associated with your bookings, such as booking fees or change fees, may be covered.

Note:

The exact coverage details can vary by provider and specific policy, so it is important to read the policy documents carefully to understand what is included and excluded.

 

What Are the Charges for Airline Cancellation in India?

Trip cancellation charges, which are the fees imposed by travel service providers (airlines, hotels, tour operators) when a trip is canceled, can range from:

Note: 0% to 100% of the Booking Cost: Depending on how close to the departure date the cancellation is made. Closer to the departure date usually means higher cancellation fees, often up to 100% of the booking cost.

• Low-Cost Airlines

Cancellation fees range from ₹2,000 to ₹3,500 per passenger for domestic flights. International flight cancellations can be higher.

• Full-Service Airlines

Fees range from ₹2,000 to ₹5,000 for domestic flights and can be significantly higher for international routes, depending on the ticket class and airline policy.

Conclusion

Trip cancellation insurance is a valuable tool for protecting your travel investment. While not mandatory, it offers peace of mind and financial security against unforeseen disruptions. With various providers in India offering comprehensive coverage, it’s easier than ever to find a policy that fits your needs. Are you Ready to safeguard your travel plans with Travel Insurance? Compare Travel Insurance with trip cancellation insurance policies from top providers today and ensure your journey is protected from the unexpected. Visit our websites or contact us to receive the best Travel Insurance coverage for your next trip.

 

FAQs

Q1. What is trip cancellation insurance?

Ans: Trip cancellation insurance reimburses you for prepaid, non-refundable travel expenses if you cancel your trip for a covered reason.

Q2. What reasons are typically covered for trip cancellations?

Ans: Covered reasons usually include illness, injury, death, severe weather, job loss, and jury duty.

Q3. Is trip cancellation insurance mandatory?

Ans: No, it’s not mandatory but highly recommended for financial protection against unexpected cancellations.

Q4. How much does trip cancellation insurance cost?

Ans: It typically costs between 4-10% of your total trip cost.

Q5. Does trip cancellation insurance cover COVID-19-related cancellations?

Ans: Many policies now include COVID-19 coverage, but it’s essential to check the specific terms of the policy.

Q6. When should I buy trip cancellation insurance?

Ans: It’s best to purchase it soon after booking your trip to ensure maximum coverage.

Q7. Can I get a refund if I cancel my trip due to personal reasons?

Ans: No, cancellations due to personal decisions are generally not covered.

Q8. How do I file a claim for trip cancellation?

Ans: Contact your insurance provider, submit the required documentation, and follow their claims process.

Q9. What expenses are covered under trip cancellation insurance?

Ans: Covered expenses can include airfare, hotel reservations, cruise costs, tour packages, and event tickets.