Travel insurance, Trip cancellation insurance

Covid 19 travel restrictions and Trip protection insurance

The Covid19 pandemic that the world is witnessing since it was first reported in China in 2019 has brought a new normal for travelers. Travelers are wondering whether they should travel and if so, where to travel and what are the new travel restrictions?

Since the beginning of the pandemic there have been various mutations of the virus that has caused devastating situations worldwide. The new Delta variant is considered more transmissible and highly contagious. The CDC has announced that the Delta Variant is comparatively more infectious than the common cold and flu. It can cause more serious disease than the previous Covid19 strains and can be easily passed on even by the vaccinated individuals. There has been an increase in the Covid19 cases due to the new Delta Variant across many countries. Several countries have brought back travel restrictions in order to curb the spread of Covid19 virus.

Travelers are looking forward to going on vacation and are booking trips into the future. Due to the surge in Covid19 cases, travel advice is on constant review and changes by the CDC. There are a lot of speculations about the travel requirements. Travelers should be prepared for all uncertainties when travelling. Having travel insurance has become one among the essential documents for travelers. There are various insurance plans that cover Covid 19 just like the other illness in the insurance policy.

Cancellation of the trip is quite likely in the current coronavirus pandemic situation when borders gets closed and travel is restricted. In an event where you need to cancel your trip due to the surge of the Covid 19 virus, travel insurance with cancellation benefits is extremely important. Including Trip cancellation in the insurance is therefore vital for travellers given the current travel situation.

Trip Cancellation Insurance/ Trip protection insurance

In an event where the trip needs to be cancelled or interrupted due to an unexpected event, Trip Cancellation insurance cover protects the health of the traveler and the cost of non-refundable trip expenses. It provides coverage for non-refundable trip expenses like hotel rooms, airline tickets lost or damaged, delayed or stolen luggage. Trip cancellation cover is often included as a standard coverage in the travel insurance policy, however there are some insurance providers who have trip cancellation as a standalone policy.

Trip interruption insurance comes into effect once the trip has begun. In the Trip cancellation insurance ‘Cancel for any reason” (CFAR) additional cover can also be included to get the maximum percentage of the cost of the trip covered. CFAR provides coverage for any reason that may not be mentioned as a reason for coverage. Reasons like changing dates of travel or cancelling it completely will not be covered by trip cancellation insurance. The CFAR cover should be purchased within the 10 days after the initial trip deposit is made. Choosing to buy “Cancel for any reason” (CFAR) cover travelers can recover up to 75 % of the expenses for a future trip.

Limitations of the Trip Cancellation Insurance

Trip cancellation insurance does not cover all reasons that a traveler may have. Every traveler will have unique circumstances for cancelling a trip. Cancellations that rise from a foreseeable event will not be covered. For example Child birth- If you are travelling with someone who is due for a child birth and due to which if you cancel the trip then in this case trip cancellation Insurance will not cover the cancellation cost. Travelers need to check for policy documents for more details on the limitations of Trip Cancellation Insurance.