Travel Insurance Policy

What Happens To The Travel Insurance Policy In Case Of Trip Cancellation?

A trip requires extensive planning in advance. Booking a ticket, finding lodging, packing your bags, and many other tasks must be completed. However, there is one thing that we frequently overlook. When you get a break, plan a vacation so you’ll enjoy it. There are memories to be made and pictures to be clicked for your Instagram. Everybody wants to bond and have a great time together. No one wants to even think about anything that might go wrong on the trip. However, when planning a trip, you tend to forget that the future is uncertain. You may book a holiday weeks or months in advance, but something may happen just before you leave.

In such cases, the loss of money will preoccupy you. Airlines and hotels don’t refund last-minute trip cancellations. A flight insurance can be helpful in these situations. Travel insurance is essential when travelling. It checks many aspects of your trip and makes you feel safe while you are away.

Travel cancellation insurance

Travel cancellation insurance reimburses pre-paid, deferred, and non-refundable expenses if the insured, travelling companion, or immediate family member becomes ill or unfortunately passes away. Your plan may cover expenses up to your trip date. Some travel insurers offer trip and flight cancellation insurance separately. Some insurance plans include travel cancellation coverage. Most flight delays or cancellation policies allow for cancel-for-any-reason coverage.

How Does Trip Cancellation Insurance Work?

You must first understand trip cancellation insurance. In other words, if the insured, travelling companion, or immediate family member becomes ill or passes away, your travel insurance plan will reimburse you for most of your trip costs (up to your policy limits).

Flights and hotels cost the most to cancel. If you have a good reason to cancel and have travel insurance cover with flight and trip cancellation, you’re fine. Insurance will cover your losses. To get reimbursed up to policy limits, give your insurance provider all the details and copies of your booking.

Technical or mechanical problems, an unannounced airline staff strike, or natural disasters could delay your flight for a few hours. If so, you may have to pay for food and lodging. Flight delay insurance covers such costs.

Why is trip cancellation insurance valid?

If you, a fellow passenger, or a close family member gets seriously ill, is injured, is in an accident before the scheduled departure date, or unfortunately passes away, you may be entitled to compensation for the unused portion of your flight tickets and other booking fees. The Insurer may refund the percentage of hotel and airline cancellation fees that were not used and are non-refundable up to your policy’s limit. Check for these before you buy travel insurance online.

Trip cancellation exclusions

Trip cancellation insurance is invalid in some cases. Cancelling your trip for these reasons will invalidate your claim:

  • Pregnancy-related issues
  • Depression, anxiety, nervous system disorders, addiction, or overdose
  • Previously existing riots or labour disputes
  • Non-accidental cosmetic surgery
  • Transport service errors
  • Flying against a doctor’s advice or with medical conditions
  • Government regulations and laws
  • Delay caused by a common carrier ceasing services after being ordered by the port administration, airline agency, or similar organisation


Trip cancellation insurance helps in many situations. If you fly often or with family, ensure you get international or domestic travel insurance with trip cancellation. Trip cancellation or delay insurance can save you time and money.  ##

Ultimately, it’s all about peace of mind and safety for you and your family. A small sum to insure versus a hefty sum if anything happens is an easy choice to make especially considering you will be in a foreign country. The more help and safety nets you have, the better it will be. Happy Travelling!

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

# Visit the official website of IRDAI for further details.

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions,

limitations, terms, and conditions, please read the sales brochure/policy wording carefully

before concluding a sale.


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