What is Trip Cancellation Cover in Travel Insurance?

Travelling is all fun and games until you run into trouble and needs assistance to get out that pickle. Not to be pessimistic but, there can be a hundred different things that can go wrong when you are trying to have the time of your life. But the worst thing of all is when you are all set to go on your trip but have to cancel at the last moment due to some kind of emergency. Here, you are exposed to the risk of losing all your non-refundable bookings, tickets and so many other deposits that you may have made for the planned activities during your vacation. Trip cancellation cover in travel insurance plans is the one thing that can salvage a cancelled trip for you and save you from the worst. Let’s understand how does travel insurance works for trip cancellation, what it is, and all the other fine details you must know about it.

What is Trip Cancellation Cover?

Trip cancellation cover is a part of the basic travel insurance that we are familiar with. As evident, it deals and covers scenarios that may lead you to cancel your trip altogether. Some trip cancellation insurance plans also cover trip curtailment benefits. From cancellation fees to non-refundable deposits and bookings, a trip cancellation insurance plan would work to have your cancellation expenses or complete booking expenses reimbursed. This benefit is not limited to can cancellations that happen before you set out on the trip though. Trips cut short due to an emergency are also covered under this benefit.

How Does Trip Cancellation Insurance Work?

The way this particular benefit will work will depend on the situation at hand. The basic idea however is that a trip cancellation insurance plan would cover the expenses of all pre-decided activities and bookings that could not be refunded. It also covers cancellation fees charged by hotels and tour operators. The coverage is always offered in the form of reimbursement. There are two main scenarios where you are reimbursed by your trip cancellation plan: you either had to cancel the whole trip before it even began or had to cut it short in the middle due to an emergency.

If you never could get started on the trip, all your pre-booked non-refundable deposits and activities are reimbursed as per the sub-limits of the trip cancellation benefit of your plan. If you had to leave the trip in the middle due to an emergency, your insurance plan would not only reimburse you for the lost deposit on pre-booked activities and accommodation but may also cover the last-minute travel expenses back to your home.

What Cancellation Reasons are Covered?

Just like in any other kind of insurance plan or sub-benefits, only some specific things and scenarios are covered by the benefit umbrella. Given below are the general cancellation reasons and conditions for which the trip cancellation benefit would offer reimbursement:

• Trip cancellation due to a sudden injury or diagnosed illness that deems you unfit for travel.
• Cancellation due to the illness or death of a family member or close relative. Hospitalization is also considered a valid reason.
• Cancellation due to circumstances that are beyond your control for example natural disasters, extremely bad weather, etc.
• Cancellation due to a legal obligation such as being called in for court appearances, jury duty, or as a witness.
• Cancellation because your place of residence in your home country was damaged.
• Change in dates of your trip due to problems at work or home.
• Theft or burglary of any kind.
• Unforeseeable man-made disasters like riots, strikes, and terrorist attacks.
• Cancellation or curtailment of the trip due to changes made by the tour operator, the airline or the hotel.  

Exclusions of Trip Cancellation Cover

• Cancellation due to pre-existing illnesses or advice not to travel from the doctor before you took the insurance plan.
• Cancellation that was because of an illness but you were not deemed unfit to travel i.e., trip cancellations are done on your own accord even for illnesses.
• Cancellation or curtailment due to self-inflicted injuries and harm.
• Trip curtailed or canceled due to complications or normal issues related to pregnancy.
• Cancellations due to injuries and illness sustained by substance abuse.
• Cancellation due to an act of war.
• Cancellation due to injuries sustained when participating in adventure sports and other activities not covered by your insurance plan.  

Is Trip Cancellation and Curtailment Cover Worth It?

You plan for days or weeks or even months for this particular event. Make so many deposits and book your favorite places to stay at. In the end, a storm, which was nowhere insights a few days ago, ruins your trip and you have to cancel the whole trip. You will be devastated for so many reasons at this point but the biggest one would be because you lost your money. Trip cancellation cover can at least salvage that part and help you save all that you spent from going to waste. In short, trip cancellation cover is worth it, every single Dirham you spend on it.

Is Trip Cancellation Insurance Available as an Independent Plan?

Generally, insurance providers offer trip cancellation as a part of their comprehensive travel insurance plans. But depending on the insurance company, you can easily find a separate plan that just deals with cancellation benefits as well. If you are looking for higher coverage specifically for trip cancellation then it is best to look for independent trip cancellation travel insurance in Dubai. If you want it to be basic coverage combined with other benefits like emergency medical expenses cover, flight cancellation/delay cover, personal liability cover, etc., choose a good comprehensive travel insurance plan instead. But remember that there is a sub-limit on all secondary benefits in travel insurance plans in Dubai. So, read the documents and policy wordings properly before making a final decision.

How to Claim Trip Cancellation Cover?

Claiming your trip cancellation benefit would widely depend on the kind of plan you have and your provider. However, the basic procedure to submit a claim for your trip cancellation cover is by filling out a reimbursement form given by your insurance company, add all the required documents, and then submit all the papers with your provider. The claim gets processed by the insurance company and you get a payout as per the plan benefits and sub-limits. Following are the documents that you would need when submitting the claim:

• Itemized bills and receipts for all your expenses are listed in the reimbursement form.
• Original documentation proof for any kind of refund that you may have received for your travel bookings.
• Documents explaining or proving the cancellation reason for the trip.
• Documentation for your diagnosis if the cancellation was because of an illness or injury.
• Unused tickets and other related documents showing your reservations and pre-bookings of flights, hotels, and activities.

Conclusion

Trip cancellation cover is an impeccable insurance benefit to have at your side to beat all odds. Just make sure that you are aware of all the exclusions and inclusions of your plan before you jump into buying it. Compare and then proceed to make the purchase. Travel insurance in Dubai comes in many options so do not forget to weigh the options properly.