I booked a trip a few months ago and purchased travel insurance. Unexpectedly, I need to cancel the trip. What expenses will be covered under trip cancellation, and how do I file a claim?

Abu Fazal

Trip cancellation is a vital component of international travel insurance that protects you financially if you need to cancel your trip due to unforeseen circumstances.

This coverage reimburses you for pre-paid, non-refundable expenses such as flights, hotels, and tour packages, ensuring you don’t lose significant money when emergencies arise, making it an essential part of your travel planning.

Trip cancellation coverage reimburses you for the loss of deposits up to the maximum amount stated in your policy if your trip is cancelled before departure. This benefit applies under circumstances described as hazards during the insured journey, with any applicable deductible specified in your policy schedule.

Common reasons covered

The common covered reasons for trip cancellation include severe sickness, injury, or death of the policyholder, the policyholder’s travelling companion, or immediate family members, as well as other severe conditions prompting a prudent person to cancel the trip.

For example, if you or a family member suffers from a sudden illness or injury that makes travel impossible, your trip cancellation coverage can help recover the non-refundable costs. Additionally, if there is a natural disaster or severe weather event that affects your travel destination, causing the cancellation of your trip, this coverage can provide financial relief.

Exclusions

The policy, however, excludes claims resulting from mental, nervous, or emotional disorders, alcohol or drug abuse, elective or cosmetic surgery, pregnancy-related conditions, government regulations or orders, pre-existing diseases, travelling against physician’s advice, defaults of transport providers, known strikes or labour disputes, and service withdrawals ordered by authorities.

It is essential to understand the exclusions in order to avoid surprises when filing a claim. Being aware of exclusions also enables one to make informed decisions about travel plans and insurance needs.

Steps to be followed

Here are a few essential steps to follow, while filing a trip cancellation claim, to ensure a smooth process.

Step 1. Notify travel provider: As soon as you know you must cancel your trip, contact your airline, hotel, and other service providers. Cancel your bookings and get written confirmations and any available refunds. This step is crucial to document your attempts to mitigate losses.

Step 2. Collect necessary documentation: Gather all required paperwork, including trip invoices, receipts, proof of payment, cancellation confirmations, and medical certificates if applicable. Keeping these documents organised will streamline the claims process with your insurance provider.

Step 3: Fill out the Claim Form: Access the trip cancellation form on your insurance provider’s website. Complete it accurately and thoroughly, attaching all necessary documentation. This ensures that your claim is well-supported and less likely to face delays.

Step 4: Submit the Claim: Send the completed claim form and documentation to your insurance provider through their preferred method. Keep the copies for your records and follow up to confirm receipt and track progress. Be proactive in responding to any additional information requests to avoid any delays

Understanding what expenses are covered, the reasons for cancellation, and how to file a claim can help you navigate the process smoothly and minimise financial losses. Trip cancellation coverage provides peace of mind and protection against unexpected disruptions. With this knowledge, you can travel confidently, knowing you are prepared for unforeseen events.

The writer is COO, InsuranceDekho

Send your queries to insurancequeries@thehindu.co.in 

Published on August 9, 2024