What Happens to Your Travel Insurance If There is Sudden Change in Your Holiday Plans?

Posted on: Sep 15, 2021 | | Written by:

What Happens to Your Travel Insurance If There is Sudden Change in Your Holiday Plans?

Published on September 14, 2021. EST READ TIME: 3 minutes

High expectations of productivity and the subsequent stress, in both professional and personal lives, are part of an individual’s daily grind. While these are punctuated by small breaks, treats, comforts and joys, they are no match for the rest and rejuvenation that a vacation brings. This is why it is imperative to be careful while planning a holiday for relaxation, or drawing up an itinerary for adventure travel to a far-off place.

The best-laid plans can hit a snag due to uncertainties. A trip you have been planning for months can fall flat because of a last-minute emergency. You may have paid for flights, hotels or other services such as travel insurance in advance. But when your trip is cancelled before it even begins, does your travel insurance cover it?

What does your policy say?

The purpose of a travel insurance plan is to provide all-around coverage against any exigency related to your travel or vacation plans. So, it is important to purchase a plan that provides coverage against as many emergencies as possible.

It is also imperative that in case of an emergency cancellation you know exactly what your plan covers. A clear understanding of all inclusions and exclusions is important. To understand your policy, ensure that you read the document from cover to cover. It will tell you exactly what to do in case of a cancellation. The cancellation procedure, conditions and expenses will all be detailed in the document.

Benefits

Each travel insurance policy differs in terms of the benefits offered when there is a trip cancellation or interruption. A thorough reading of the policy document will tell you exactly what your plan offers. Here’s what you should look for:

Complete cancellation

Trips that are cancelled before the date of departure can usually benefit from a travel insurance cover. Several financial losses arising from the cancellation of trips are covered by a travel insurance policy. These could include costs of flight cancellations, advance payments towards hotel reservations or booking fees for travel packages.

Mid-trip interruption

An ongoing trip can also be interrupted by an emergency. If such a situation arises after you have departed and leads to you changing your plans mid-vacation, a travel insurance policy should ideally cover you. Based on your sum insured, financial liabilities arising from situations such as the unexpected or critical illness of the policyholder, natural disaster or extreme weather conditions, death of a family member or political unrest in the destination are usually reimbursed.

Typically, a policyholder can expect to get coverage for expenses of returning to their home along with costs of reaching the original destination in the event of a delay or unfavourable event.

What happens to your policy if the trip is not made?

If the trip you were meant to embark on is cancelled before it started, most travel insurance policies give you the option to cancel your plan. The policyholder will require proof stating that they did not go for their vacation. Their passport can be shown to prove this. Often, insurers require policyholders to request their cancellation at least 14 days after the date of insurance. Insurance companies may charge a cancellation fee by way of retaining the portion of the premium.

Buy travel insurance online

HDFC ERGO offers a travel insurance plan that can be bought online. It takes care of a number of emergencies that may interrupt the policyholder’s travel plans. It covers emergency medical expenses through cashless treatment in its network hospitals. This plan, however, offers comprehensive coverage for both medical and non-medical emergencies.

Medical:

The plan covers daily hospital cash allowance. If an accidental death occurs, a lump-sum compensation will be paid to the family of the policyholder and the body repatriated to the home country by the insurance company. The travel insurance plan also offers coverage in case of permanent disablement.

Journey and baggage:

The HDFC ERGO’s travel insurance covers loss of baggage and personal documents. Policyholders are reimbursed for the costs incurred while issuing a new passport. The plan compensates policyholders for losses and delays of their checked-in baggage too.

Accidental third party damage in a foreign country is also compensated under this plan. Along with this, the insurer provides financial help in case of theft or robbery. The plan covers the cost of essentials bought during a flight delay and hotel accommodations during a medical emergency. It also has a provision for hijack distress allowance.

Conclusion

A number of uncertainties can derail or disrupt your travel plans. You can buy travel insurance online to deal with these. Depending on the nature of your emergency, you can choose to use your travel insurance cover to tide over financial losses - whether they occur before you board your flight or during the course of your trip. Alternatively, you can choose to cancel your travel insurance cover if your trip has been cancelled and you are under no financial liabilities covered by your insurer like advance flight and hotel payments.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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