Travel Insurance

A Guide to Trip Cancellation Insurance


Trip cancellations are a common travel contingency that many completely forget to take into account while planning their travel. Did you know that Flight Stats calculated a total of 17,323 flight cancellations in the month of August 2017 alone? And that is only one of the reasons why you might have to cancel your trip.

Imagine this, you have planned a trip to an exotic Hawaiian island. Your hotel room is booked, you bags are packed and your passport is sitting on the night stand, eager to be stamped. And you fall ill the night before your departure and are advised to stay in bed for a couple of days! Heart breaking, isn’t it? A cancelled trip not only brings your spirit down, it also brings your bank balance down. Why put your hard-earned money at risk when you can protect it with trip cancellation insurance? In fact, you should put the purchase of such insurance on your list of things to do before going on a trip.

All You Need to Know About Trip Cancellation Insurance

What is it?

Trip cancellation insurance is an insurance policy that protects you and your travel companions from financial losses incurred due to the cancellation of your trip as a consequence of an unforeseen event. In other words, it minimizes the risk of loss due to nonrefundable expenses by covering the cost of your tickets if the trip gets cancelled because of the reasons covered by the plan.

What all does such insurance cover?

All trip cancellation insurance plans cover the cost of tickets, and depending on the whether you buy a comprehensive plan or a limited one, the reasons for cancellation covered might vary. The most common trip cancellation risk situations that most plans protect you against include:

  • You, your partner or another dependent individual falls sick and you are forced to call the trip off.
  • Death of a family member or any other travel companion.
  • In case your home faces damage in a natural disaster, such as flood, earthquake or fire.
  • Absolute termination of travel services due to a strike or political unrest.
  • The destination you had to arrive at has an active terror strike that forces you to cancel the trip.
  • You or others covered by the plan are affected by a termination or layoff.
  • Unfavourable weather conditions make it impossible to travel to your destination.
  • You partner is expecting a baby and is not allowed to travel long distances.
  • You or your spouse has been quarantined, that is, put in isolation because of a suspected health risk, after arriving from elsewhere.
  • You or your partner has been summoned by a court.

Who are these plans for?

Trip cancellation insurance has flexible eligibility criteria, although most companies require you to buy the plan prior to your trip, in your home country.

All travelers are advised to buy a trip cancellation plan, especially those embarking on an expensive trip or planning their trip weeks in advance or those who are planning to travel by cruise or with kids.


Having lived in 3+ countries, worked for companies small and big in USA, Middle East & India, I have a lot of stories to share about international travel, immigration and living as an NRI in the US.

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