Travel Insurance Benefits on Trip Cancellation

A Insurance Article Contributed by Deepak Cutting

Travel Insurance Benefits When Trip is Canceled

A travel insurance plan only covers you for the perils or events that are listed in its Description of Coverage. If it's not listed (or excluded) it's not covered. Travel Insurance is a source of refund of unused, non-refundable prepaid expenses in respect of your travel arrangements, up to the amount protected in your insurance policy, if you are prevented from performing that trip due to any of the following reasons:

Travel Insurance Liability When Cancellation Due to Personal Reasons

· Sickness, injury or death of you or your traveling companion, a business partner or family member, which causes medical restrictions to the travel or prevents your further participation in the travel plan, as certified by a licensed physician.

· When employed by the same employer for 3 continuous immediately preceding years, termination from service or layoff by such employer affecting you or the person sharing the same room as you during travel.

· The usual residence of yourself or your traveling companions having been damaged and rendered uninhabitable due to unforeseen circumstances or burgled.

· Frivolous assault on you or your traveling companions during the 10 days immediately preceding the travel commencement date.

Travel Insurance Liability When Cancellation Due to Mistake by Carrier

· Previously unknown strike by the carriers for more than 48 hours, causing them to stop operating.

· Benefits up to $20,000 or the amount provided in the insurance policy, whichever is less, in the event of your carrier or tour operator becoming bankrupt and stopping service more than 14 days following the effective date of your travel insurance policy.

· Benefits in respect of default or bankruptcy of your carrier or tour operator will be available only if there are no alternate arrangements in place. Should alternate arrangements be available, the travel insurance policy can bear only up to the fee paid to allow transfer to such arrangement.

· If your travel supplier cancels the trip, you are entitled to claim up to the value of re-issuing fee or the amount protected in your travel insurance policy, whichever is lower.

Travel Insurance Liability Cancellation Due to Some Other Reasons

· The prevailing weather conditions that caused a shut down in services of your carrier for at least 48 hours, effecting your travel plans.

· Your scheduled departure must not be more than 15 months after the effective date in your travel insurance policy.

· If you cancel your trip on account of a terrorist incident occurring at your proposed destination within 30 days of your scheduled departure. There should have been no terrorist incident in that city during the 90 days prior to the incident that caused you to cancel your trip. Should your travel service provider offer a substitute tour, this benefit is not available.

· Hijack, quarantine or court ordered appearance as a witness in a matter where you or your companion is not a party. You or your companion being ordered to join in military duty in an emergency other than war.

· A traffic accident involving you or your companion on route to the scheduled departure point.