The trip cancellation coverage provides insurance coverage if you have to cancel the trip. It will also cover the risk if you are compelled to cut down your trip short. There are various reasons due to an individual has to cancel his/her trip short. The reason can be injury or sickness of the insured or travel companion or family member. In some cases, natural calamities such as hurricanes or cyclone can make travelling a risky affair. Hence, you will want to cancel your trip. Additionally, if there is a sudden change in the political climate, you are compelled to cancel the trip.
Benefits of Travel Insurance Plan
Here are the benefits of trip cancellation cover.
- Trip Cancellation- True to its name, trip cancellation coverage will be provided when you want to cancel the trip. It will provide you with the much-needed coverage when you have made the pre-paid arrangements for the trip such as flight, accommodation, boarding and sightseeing facilities etc.
- Trip Interruption- The coverage is provided when you have commenced the trip and the trip has to be cut short due to medical or another kind of emergency. The trip interruption coverage will be provided and the insurance company will pay the compensation as per the terms and conditions.
- Emergency Medical Coverage- A travel insurance plan will cover injury or sickness. The emergency hospitalization expenses will be paid by the travel insurance company.
- Trip Delay-In case you failed to catch the booked flight, will have to buy another flight ticket. In some cases, you might not be able to catch the connecting flight due to the early arrival of the scheduled flight. In that case, the trip delay will be covered by the insurance plan.
- Luggage is Lost or Stolen- The loss of checked-in baggage will be covered by the travel insurance policy. You can also get compensation from the insurance company for loss of personal belongings. However, it should be mentioned in the insurance proposal form.
- Emergency Evacuation- It provides emergency medical assistance when you are severely ill. In case you are unfit to travel back to your home country, the travel plan will provide medical assistance from the local hospital and covers emergency evacuation expenses.
- Bankruptcy of the Travel Agency- In case the travel agency files for bankruptcy, you will not be able to complete the trip successfully. The risk will be covered by the travel insurance policy.
- Course Extension- You will want to cancel the trip if there is an extension of the course. As it is a valid reason, the insurance company will cover the risk and it will pay the compensation as per the terms and conditions of the insurance policy.
How to Buy a Travel Insurance Policy?
You should buy a travel insurance plan from the right travel insurance provider at the right time for the right sum assured.
The following tips can help you find the best travel insurance policy:
- Assess the Trip Cancellation Risk–You should assess your insurance requirements and buy a policy to neutralize the risk.
- Avoid the Trip–If you get to know about any risk at the destination, you should avoid the trip altogether.
- Disclose Complete Information- It is important to disclose complete information to the travel insurance company so that your claim will not be rejected.
- Choose the Right Type of Travel Insurance Plan– It is a wise move to choose the right type of travel insurance policy which covers various risk factors apart from the trip cancellation cover.
- Customize the Plan–You can choose various riders which are relevant to your trip and the unnecessary riders can be avoided so that you can optimize the insurance plan.
- Sum Assured–You should opt for a sufficient sum assured so that you get to enjoy comprehensive insurance coverage.
Over to You
A travel insurance policy will help you avoid a major financial loss. You should buy the trip cancellation policy as soon as you make your first payment for the trip. It will ensure that you have a tension-free trip.
The key to buying travel insurance is to opt for an appropriate sum assured. Just like being overinsured, being underinsured does no good.