How Cancelling Trip Can Affect Your Travel Insurance

You buy travel insurance online to protect yourself from financial losses that may result out of various unfortunate situations. But what happens to your policy when your trip gets canceled even before it commences?

How Cancelling Trip Can Affect Your Travel Insurance - Acko

Well, there are a few options to exercise in that case. From making a claim for the flight cancellation fine to getting a complete refund, you can choose what suits you the best. In this article, we will discuss how cancellations impact travel insurance:

Trip Cancellation Impacts on Travel Insurance

Making a claim: You always have the option of making a claim. This works mainly if:

There’s a flight cancellation fee: Most airlines levy a fee if you cancel a booked ticket. If you buy travel insurance online, you can make a claim and get this reimbursed.

There’s a rescheduling fee: If your trip is canceled temporarily due to a personal or professional emergency, you may have to postpone or prepone it to a more suitable time. You will then have to pay an itinerary modification charge. You can use your travel insurance plan in India to get compensation for this.

There’s a hotel cancellation charge: Most hotels around the world charge a cancellation fee. If you need to cancel your reservation due to the cancelation of your trip, use your travel insurance cover to make a claim for the amount lost.

Canceling the policy: Your other option is to get the travel insurance plan in India canceled too. If your trip hasn’t even commenced, you can think about this option. This will work especially if you are not liable to pay any cancellation fees anywhere. Let us assume all the reservations were done by your office. You had to buy travel insurance online mainly for its medical coverage benefits. In such a case, you can easily cancel the policy and ask for a premium refund. You will be charged a nominal fee but the majority of the premium you paid will be returned to you.

These are the two main options you have in relation to travel insurance and trip cancellations. Weight out the situation properly and then choose the option you feel would be financially viable for you.

These were important points to remember before you use travel insurance for canceled trips. Also, before you make a claim on your travel insurance online policy, do ask yourself the following questions:

  • Q: Will the claim amount be larger than the premium refund?

Ans: You have to do the math and see if the claim amount paid out to you is larger than the premium you stand to get back. If no, then, you can opt to get a premium refund and pay the lower cancellation fee yourself. This will be a more economical option. If however, you find the cancellation fees are quite steep, don’t hesitate to make a claim on your travel plan.

  • Q: How to cancel travel insurance online?

Ans: It is very simple to cancel your travel insurance policy. You can cancel at any time before the trip begins. Your refund process will be initiated. You can visit your insurance provider’s website and look for the policy cancellation form. Fill it and submit it online itself. Along with the form, you have to submit a piece of evidence to show your trip has indeed been canceled.

The Final Word

Look for a good travel insurance policy when planning a trip. If due to some unavoidable circumstances your trip does get canceled, you will always have the option of either making a claim or canceling the policy. Keep the points mentioned above in mind and take a decision based on the situation. You should look to have a financial security in whatever option you choose.  

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