Personal Finance

Insurance Uncovered

Bavadharini KS | Updated on May 12, 2020 Published on May 12, 2020

Travel insurance

Are there specific guidelines issued to insurers to handle claims such as ticket cancellation due to Covid-19? Insurers do not seem to be accepting such claims even though coverage is mentioned in the issued policies...

M Thomas

Per a circular by issued by insurance regulator IRDAI, travel insurance policies that are valid between March 22 and April 30, 2020, should offer the policyholders an option to defer the date of travel without any additional charge. Travel policies from insurers including ICICIC Lombard, Bajaj Allianz General, HDFC Ergo and SBI General offer to reschedule the policy free of charge. You can communicate the same to the insurer via digital platforms — email, WhatsApp or chatbot — or through your agents. Further, some of the insurers allow you to cancel your travel policy, waiving policy cancellation charges. Insurers such as ICICI Lombard and Bajaj Allianz General Insurance offer to refund the premium paid on the policy and cancel it free of cost. For instance, ICICI Lombard normally charges ₹300 for cancellation, which has been waived during the pandemic period.

If your ticket was cancelled by the airline due to Covid-19, the options before you are: to cancel the policy and take a refund of premium or change the travel date.

Now, if you haven’t commenced your trip due to an earthquake or other natural disasters, terrorism and personal contingencies including death or hospitalisation of immediate family member, insurers will compensate you financially up to a limit mentioned in the policy. Also, if you have already travelled abroad and are unable to return, insurance companies will give you the option to extend your existing policy for an additional premium. In this case, insurers also offer to compensate you financially with emergency cash or pay for accommodation, etc (subject to the maximum limit for the cover in the policy).

Published on May 12, 2020

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