Trip cancellation insurance is purchased when you are taking a trip abroad and provides you cover against financial losses that may accrue due to a cancellation. Though there are a number of covers that are provided by trip cancellation insurance, you need to look into the aspects that are not covered by the plans. It is always a good idea to compare plans and take a good look at the exclusions under your trip cancellation insurance plan.
Trip cancellation insurance will not provide you cover for the following causes that result in trip cancellation:
- Trip cancellation insurance is usually not valid for an illness or injury that has been listed as a pre existing condition. If you cancel your trip because of a pre existing condition you may have, your carrier will not cover it for you
- The exclusions also do not apply in case your trip had to be cancelled because of willful acts on your part. This may include alcoholic or drug abuse, acts of suicide or any illness that can be caused by willful acts.
- It is important for you to remember that only unforeseen reasons that caused a disruption of your travel plans will be covered by trip cancellation insurance. If you suddenly decide to end a trip because of your mood and get back to your hometown, your charges for the cancelled trip will not be refunded. You will also not be refunded your amount if you feel that traveling is unsafe or even if you felt that your trip would come in the way of contractual obligations. Of course, some plans do provide you with covers in case you have to cancel your trip because of ‘work reasons’, however, that is the exception rather than the rule.
- Another point you need to remember is the coverage regarding bad weather. For instance, if the place you are visiting has heavy rainfall and you have to stay indoors most of the time that does not qualify for trip cancellation insurance. You will only receive covers for it if rainfall prevented you from reaching the place!
- Exclusions are also made for trip cancellations due to your financial circumstances, for instance, if you feel that you cannot afford the trip anymore and need to cancel it.
- Declared and undeclared war
- Psychological or mental disorders that cause anxiety, neurosis, depression etc.
- Trips that are cancelled by the tour operator, cruise liners or airlines. The logic is that the tour operator or the person in charge has to return all your money.
- Exclusions also apply to such conditions as pregnancy, childbirth, elective abortions etc. However, you may get covers for complications arising out of pregnancy that threatens the life of the mother and the child.
- Trips that need to be canceled because of government regulations
- Loss or damage caused by unlawful acts, confiscation and detention by custom agents.
Exclusions are meant to secure that you do not claim covers for such acts as could be foreseen or are unfair. For this reason, it is very important for you to study them in detail before you go for any trip cancellation insurance plan.