Trip Cancellation Insurance

 

It is advisable to have a Trip Cancellation Insurance should you pay a lot of money for a trip that is non refundable should you cancel it for any reason because a Trip Cancellation Insurance covers you if unforeseen events cause you to cancel or interrupt your trip. Usually, this coverage is meant for illness, injury or death suffered by the insured or a member of the insured's immediate family or in the event that you pre-pay a cruise or tour that gets cancelled and you cannot get your money back or bad weather makes travel impossible. This type of insurance covers you for the period of time before you travel and it will reimburse you for any prepaid, non-refundable expenses such as airline tickets or hotel charges that you will not be able to use since you had to cancel the trip.

 

Some policies may also cover cancellation in the event of illness, injury or death to the insured's travel companion. Most policies exclude trip cancellation in the event of war or other hostilities such as terrorism, natural disasters and bankruptcy of tour operators. Certain policies may also exclude travel to specific destinations which are prone to political unrest. Sometime you must first seek reimbursement from the trip provider before the insurance company will consider the claim. It is important to know that many policies specifically exclude pre-existing conditions or injuries sustained during high risk activities such as bungee jumping are also usually excluded. Insurer also excludes pregnancy from coverage. This is usually the most useful type of travel insurance because it cover losses that are usually not covered by most travelers' existing coverage. Trip Cancellation Insurance and Trip Interruption Insurance are often bundled and sold as a package.

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Last updated : 02 January, 2009