As Summer begins in India, people keenly make plans to travel to global destinations to get a kick out of and break out of burning heat.
A report stated that there has been an enormous 101 percent growth in the volume searches for international destinations over the last 5 years. Further, the report even highlighted that Indian travelers are now becoming increasingly audacious with their travel choices.
Before planning a trip abroad, it is all-important to buy travel insurance in order to ensure a smooth holiday. Besides travel insurance policy is also predominantly bought for canceled flights.
Usually, travelers forget trip cancellation event that oftentimes leaves them in the position of wondering how they can retrieve the lost funds.
During an out of the blue situation, you may be obligated to cancel your trip and that can actually turn out to be a massive financial loss. In all such instances, a travel insurance policy comes very conveniently as it covers you against unforeseen financial losses during travel and offers benefits against trip cancellation.
Here are a few points that you do – before, during and after the fact – to lessen the cost and disruption of a canceled trip.
Trip cancellation
Trip cancellation feature under a travel insurance policy falls under the pre-departure coverage wherein the policyholder is reimbursed (up to the covered amount) for pre-paid non-refundable trip costs. This only happens if the trip is canceled due to a covered reason under the policy terms and conditions. While the different travel insurance plans define their individual trip cancellation benefit covers, one of the most common reasons for trip cancellations included in most policies is an injury/illness leading to hospitalization or death of the insured, destination host, immediate family member. Weather and natural disasters are some other prominent reasons for trip cancellation. One must make sure to pick a policy that covers everything and anything that is important.
Benefits of travel insurance policy
During a trip cancellation, the travel insurance policy offers cancellation benefits to the policyholder as per/up to the benefit sum insured. The policy helps in retrieving the financial losses occurred owing to sudden cancellation before the date of departure.
The trip cancellation feature reimburses you for the cost of your entire package up to the total sum insured. The covered expenses include hotel reservations, travel tickets, and any other activities for which you have paid beforehand.
However, one must realize that trip cancellation feature is only valid till the departure date. The details may differ from insurer to insurer and with each plan. If you do want to cancel, you can claim the prepaid, non-refundable trip cost for which you are insured and can provide documentation.
