Trip or travel can be quite expensive, especially if you are planning for cruises or long tours. Making reservations for airline tickets, rail tickets and booking hotels are an integral part while planning a trip. Nevertheless, there are chances of trip cancellation or shortening of trip due to any unavoidable reasons. In such cases, if the airline tickets and cruise deposits are non-refundable, then the losses incurred may account to a substantial amount. Travel insurance is a prudent option to reimburse prepaid expenses in case of cancellation of trip or interruption during the trip.
Travel Insurance for Trip Cancellation and Interruption
Like other insurance policies, travel insurance follows certain norms for providing coverage. The traditional travel insurance plans are designed to provide benefits in case of illness and death of the insured person or his/her immediate family. If the illness is caused due to a pre-existing condition that is present before purchasing the traveling insurance, then the insured cannot avail the reimbursement of the trip costs.
In addition, majority of the standard travel insurance plans do not provide coverage for trip cancellation due to war, disease epidemic, civil disturbances and/or financial crisis of the insured. The traditional standard trip cancellation policy has certain exclusions for providing the benefits. In the policy document of such plans, a list of valid reasons are mentioned, which is a reference for providing reimbursement. Claims for cancellation or interruption of trip due to any event that is not included in the valid reasons will be denied.
Nowadays, many financial institutes design travel insurance products with features that are designed to meet the requirements of many people. Based on the coverage plans, terms and conditions, there are several types of trip cancellation insurance. One such policy is getting coverage even if the trip is canceled for any reason. With such a feature, some financial institutes provide carrier accidental life insurance. For getting trip cancellation insurance for any reason, the insured may require to pay some extra charges, which varies according to the insured amount.
Purchasing Travel Insurance
Shopping around and gathering information before purchasing traveler's insurance is a better way to get a good coverage plan for trip cancellation and suspension. You can choose an insurance policy that suits your requirements and budget limitations. While purchasing a travel insurance, make sure you check the policy documents carefully. You can check if there is any specification regarding the type of airline or cruise cancellation, which are provided by the policies.
Check if the policy covers the total trip costs in case of any foreseen reasons such as illness, death of relative, injury, travel delay, loss of baggage, bankruptcy of the travel supplier, emergency medical evacuation (for example, disease epidemics), weather conditions, terrorism and traffic accidents (if any). Always opt for the travel insurance plan that covers the whole duration of the trip with the broadest terms.
Once you are clear and satisfied with the policy norms, you can proceed the steps for buying the travel insurance prior to the trip. In the application form, you are required to fill up your personal information (name, age, sex, address, etc), trip cost, starting date of the trip, ending date of the trip and other details. After completing the procedure and paying the charges, your trip cancellation and interruption insurance will be issued.
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