Varun and Shivani are about to go vacationing with their two kids. They plan to go skiing and accordingly make bookings in a resort which includes skiing package. Three days prior to the flight, the kids fall sick following which they cancel their trip.
With trip cancellation coverage, Varun and Shivani do not need to fret about losing the money they spent on booking flights and accommodation (with the skiing package).
To cater for travel emergencies arising from flight delays, medical crises, loss of baggage and passports, trip cancellation coverage Is standard across travel plans.
Trip cancellation coverage
The trip cancellation coverage is essentially a pre-departure feature. In this, the travel insurance provider reimburses the cost of the non-refundable and pre-paid expenses like unused flight tickets and hotel bookings. Note that the coverage for trip cancellation can be claimed only for reasons that are mentioned in the policy document.
For a travel insurance plan to cover cancellation of a trip for any reason whatsoever, there are specific plans under the label “cancel for any reason travel insurance”. Depending upon the terms and conditions of the policy, the cover can also reimburse the single supplement fee (the termination of the trip of the insured co-traveller only).
Commonly included reasons
Before signing the papers, you must read your travel insurance policy document thoroughly to understand all the inclusions and exclusions well. Common trip cancellation scenarios covered include personal injury, illness, bad weather, natural calamity, terrorist attack at the destination etc.
Several travel insurance policies also cover other personal crises, like a death in the family or other familial commitments (has to be mentioned in the plan), schedule mismatch at the workplace, new joining, assaults on you or your travelling companion.
With trip cancellation coverage, you will be able to recover substantial pre-paid out-of-pocket expenses, if you happen to terminate your trip.
Explore more Travel Insurance Features.
FAQs
The cancellation and curtailment section of your travel insurance policy provides cover if you need to cancel your holiday before you depart, or curtail (cut short) your holiday whilst you are away due to various reasons which are specified in the policy wording and include; your illness, the illness of a close ...
Does travel insurance cover curtailment? ›
What is curtailment travel insurance? Curtailment travel insurance will cover you in the event that you have to cut your holiday or trip short and return home earlier than planned. This may be due to sustaining a serious illness or injury, or a close relative is taken ill or has died whilst you were away.
What is not covered by Allianz travel insurance? ›
Claims due to known, foreseeable, or expected events, epidemics, government prohibitions, warnings, or travel advisories or fear of travel are generally not covered (coverage can vary by state.)
What is the meaning of trip curtailment? ›
Curtailment essentially means the sudden end to your trip, typically due to a critical event that demands your presence back home. Although it's not something we want to imagine, sometimes a situation will arise where you'll need to head home prematurely from your holiday.
What does curtailment insurance cover? ›
Generally speaking cover for curtailment entitles you to claim back a pro-rata refund of any pre-paid accommodation, car hire or holiday excursions you will no longer be able to use following your return home.
What is the purpose of the curtailment? ›
Curtailment aims at lessening the stress on the grid at a given moment of the day. Most commonly, curtailment is associated with the reduction of infeed from renewable energy sources.
Does travel insurance cover if you have to cancel your trip? ›
If you need to cancel or cut short your holiday because something unexpected happens, cancellation cover lets you reclaim some or all of the money you've already paid out. So, if you suddenly become seriously ill and can't go on holiday because you need treatment, you can claim on your travel insurance policy.
What kind of cancellation is covered by travel insurance? ›
The most common covered reason is unforeseen illness, injury, or death of the traveler, a traveling companion, or a non-traveling family member. Other common covered reasons include terrorism, inclement weather, or a natural disaster, among others.
How does cancellation work on travel insurance? ›
Cancellation generally covers you for the cost of cancelled flights, hotels, visas, tours/excursions, paid-for activities or sports, and prepaid meals, less applicable excess. This is all assuming that the expenses cannot reasonably be recovered from any source.
Is Allianz a good travel insurance company? ›
Allianz Travel can be a solid choice if you're looking to purchase travel insurance.
The Cancel Anytime upgrade, available with certain plans, reimburses 80% of your prepaid, non-refundable trip costs if you cancel your trip for almost any unforeseeable reason your plan does not already cover.
What does Allianz Basic travel insurance cover? ›
This plan also includes crucial benefits for trip interruption, emergency medical, travel delays and lost/stolen or damaged baggage. Coverage for existing medical conditions is available. All benefits are per insured unless otherwise noted.
What is a curtailment plan? ›
In accounting and finance, a plan curtailment refers to a significant reduction in the number of employees covered under a company's defined benefit pension plan or post-employment benefits plan.
What is the curtailment period? ›
A letter of curtailment explains the reason why UKVI have decided to cancel or shorten your leave and when you must leave the UK. This may be immediate, or you may be given a fixed number of days to leave the UK. In most cases, a person who receives a letter of curtailment will have 60 days to leave the UK.
What does curtailment mean? ›
Curtailment is the act of restricting or reducing something or cutting it short. The word is often used in business announcements and has several uses in the mortgage industry: A mortgage loan may be satisfied by curtailment when the homeowner pays off the balance ahead of schedule.
What does cancellation mean on travel insurance? ›
If you need to cancel or cut short your holiday because something unexpected happens, cancellation cover lets you reclaim some or all of the money you've already paid out. So, if you suddenly become seriously ill and can't go on holiday because you need treatment, you can claim on your travel insurance policy.
How does curtailment work? ›
Curtailment is the reduction of output of a renewable resource below what it could have otherwise produced. It is calculated by subtracting the energy that was actually produced from the amount of electricity forecasted to be generated.
What does trip cancellation mean in travel insurance? ›
Trip cancellation insurance covers your prepaid, nonrefundable trip expenses if you're unable to travel due to certain unforeseen circ*mstances, such as an illness or the death of a family member.
Is it good to get trip cancellation insurance? ›
Travel insurance can be useful, but it's not always necessary. The key to knowing if you need travel insurance is figuring out your specific risks for any given vacation, then deciding if you can buy coverage that adequately protects you from any financial losses and pitfalls that might occur.
