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How Does Trip Cancellation Insurance Work?

  • Author :
  • TATA AIG Team
  • Published on :
  • 21/09/2022

Everyone needs a break now and then, and when you finally get the break, you want to plan your time off in a way you will enjoy the most. Of course, one of the best ways to spend time off is by taking a trip. But the one thing you often forget to consider when planning a trip is that the future is uncertain. It is possible that you book tickets for a holiday weeks or even months in advance, and just as you are supposed to get on your way, something happens, leaving you unable to take the trip.

In such cases, the thing that will play on the top of your head is all the money you will lose. Airline tickets and hotel bookings are not inexpensive, and if you cancel a trip just before you are to leave, you will get no reimbursement from the airline or hotels. In times such as these, travel insurance with flight cancellation and trip cancellation insurance come in handy. We will talk in-depth about trip and flight cancellation insurance. But, before that, we need to talk about travelling insurance.

Whenever you are travelling anywhere, having travel insurance is of utmost importance. It looks into many aspects of your trip and helps you feel secure even as you are away from home. If you are looking into travelling insurance that comes with flight travel insurance, you need not look beyond Tata AIG. Tata AIG’s travel insurance plans are curated, keeping in mind the many scenarios where you may need our assistance, so we cover all bases. Trip cancellation insurance and flight delay insurance are covered in our plans. So when it comes to travelling insurance, always choose Tata AIG.

And now, let us learn more about trip cancellation insurance.

What is Trip Cancellation Insurance?

Trip cancellation insurance will pay you back for your pre-paid, deferred, and non-refundable expenses if you cannot go on your trip because of the sickness, illness or death of the insured, travelling companion or an immediate family member. Your policy may help with expenditures up to the date and day of your trip, according to your plan. However, some travel insurance providers offer trip and flight cancellation insurance as stand-alone plans.

Trip cancellation coverage is sometimes offered as additional coverage to a standard insurance plan. You may add more types of coverage, like cancel for any reason, to most basic flight delay or cancellation policies.

How Does Trip Cancellation Insurance Work?

You must have gotten a basic idea of how trip cancellation insurance works. In simple words, if you cannot make your trip and need to cancel the trip owing to the sickness, illness or death of the insured, travelling companion or an immediate family member, your travel insurance plan will reimburse you for most of the payments (as per your policy limits) you have made toward your trip.

When cancelling a trip, a person loses the most amount of money when they are cancelling flights and hotels. However, if you have a valid reason for cancelling your trip and if you have travel insurance with a flight cancellation and trip cancellation, you have nothing to worry about. You will not sustain significant losses as your insurance will reimburse you for your payments. You only need to provide your insurance provider with all the necessary details and copies of your booking to get reimbursed up to policy limits.

Another situation where such an insurance cover can be useful is when there is a delay in your trip. Your flight could be delayed for a few hours because of technical or mechanical issues in the plane, an unannounced staff strike of the airline carrier, or natural calamities. In such cases, you might have to shell out for food or arrange a place to stay, among other things. If you have flight delay insurance, your insurance provider will reimburse you for such expenses. You can also learn more about our trip delay insurance policy.

On What Grounds is a Trip Cancellation Insurance Valid?

If you have trip cancellation insurance from Tata AIG, there are a few scenarios wherein you are entitled to a reimbursement. You can learn how trip cancellation insurance works with our blog. For example, before the scheduled departure date, if you, a fellow passenger, or a member of your close family passes away, gets severely sick, is injured, or is involved in an accident, you may be entitled to compensation for the unused portion of your flight tickets as well as other booking fees. Your loss will be reimbursed up to the amount specified in your policy statement, and we will be responsible for paying back the percentage of the hotel and airline cancellation fees that were not used and not refundable.

Exclusions Pertaining to Trip Cancellation Insurance

There are a few situations where your trip cancellation insurance from Tata AIG will not be valid. These include cancelling your trip because of;

  • Pregnancy and associated issues
  • Depression, anxiousness, nervous system diseases, addiction to alcohol or drugs, or an overdose
  • Any riots or labour disputes that existed when you purchased the insurance or for which a notice was issued.
  • Getting cosmetic surgical procedures for a cause besides an accident.
  • Mistakes made by the transport service or its representative
  • Flying against a doctor's advice or if you have any existing medical conditions
  • Any rules and legislation enacted or published by the administration or another public body
  • Delay brought on by a common carrier ceasing to provide services after being ordered by the port administration, the airline agency, or another comparable organisation.


There are many situations where having trip cancellation insurance can be very helpful. For example, you should buy this type of insurance if you are a frequent flyer or are travelling with family. Travel insurance with trip cancellation or delay cover can save you a lot of stress and money. And, of course, when considering travel insurance, always think Tata AIG!

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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