Trip cancellation/trip interruption insurance

There are various benefits for the as certain type of insurance which can back up your money if your trip gets canceled or interrupted by any certain cause. There are so many benefits of having an insurance regarding your trip cancellation or trip interruption.

When your trip gets canceled you will get reimbursement for the covered loss which prevents you from traveling on or before the departure date and this results to the cancellation of all your travel arrangements.

On the other hand, if your trip gets interrupted, you will get coverage for those losses which were done on the way to your destination. It also provides reimbursement if the travel company or airlines postpone your trip. Your insurance will incur money if the travel company sets up a fresh departure date.

It is important to note that your trip cancellation/trip interruption insurance will provide reimbursement for only those expenses which you have pre-paid. This includes non –refundable travel expenses like passenger fares, tour packages, and hotels. Moreover, this insurance can also reimburse from the hotels and all types of transport like fights, bus, cruise ship or train.

You must know certain things to know about the trip cancellation/trip interruption insurance. These are discussed below:

• Who is covered?

Insurance holders and his/her family is included in the list for getting coverage. If the primary insurance holder is not traveling with the family, then still they can get coverage.

• Coverage Amount & Period

You can get minimum coverage of $5000 to maximum 20,000. The benefits may cover 50 % – 75 % depending upon the policy. Moreover, if your policy allows then you will get coverage for initial trip payment if you have paid for the trip within 10- 30 days. Your insurance provider will also recover the money from the travel supplier within 48- 72 hours before the departure date.

• Criteria for getting coverage

You will get cover if you face certain calamities like accidental injury, loss of life, sickness of the primary insurance holder or his/her family member if they are traveling. Other reasons will also be covered if it prevents you from completing the trip like natural or weather calamities, terror attacks, court order or legal proceedings, and financial failure of the insured person’s travel agency, tour operator, or travel supplier.

• Reasons for not getting coverage

You will not get your travel coverage if in case your travel is canceled or changed by the carrier or tour operator due to some other reasons. If the cancellation is not due to extremely bad weather, or any kind of strikes affecting public transportation, then you are not eligible to get cover. Moreover, other reasons like travel plan change or financial crunch, pre-existing medical condition, traveling against medical advice, a declared or undeclared war, uncovered trips exceeding more than 60 days duration, etc are also not covered under your trip cancellation/trip interruption insurance.

Certain steps to be followed while getting coverage on trip cancellation/ trip interruption from your insurance plan

1. The primary holder of the insurance plan must inform the travel carrier and travel company within 48 hours of getting medical advice that he/she is not fit to travel. This implies in case of trip cancellation only.
2. You must declare a written statement within 20 days or as soon as possible to your insurance company after your trip gets canceled or interrupted due to some reasons.
3. The benefits team from the insurance company will send you a claim form where you can declare the loss. This form must be completed with valid documents and must be submitted within 90 days of the incident which led to your trip cancellation or trip interruption.

Thus, it is important to have an insurance which can cover your expenses if your travel gets canceled or interrupted. Choose wisely before you go for an insurance plan.