For a major part of 2021, travel was restricted in many parts of the country. Hence, most people started making travel plans for 2022. Some of them booked tickets and made hotel reservations too. There was a general feeling that the pandemic won’t last so long. However, the Omicron variant put a dampener on these hopes.
While travel restrictions were not imposed as strictly as before, with the number of infections rising, many people decided to cancel their travel plans and subsequently cancel travel insurance. Since people had purchased travel insurance plans, they thought they would receive reimbursement from the insurer since the trip was being cancelled due to coronavirus.
Unfortunately, most of these claims were rejected because the cancellations were made due to the fear of contracting Omicron, which was not a valid reason to claim reimbursement. In addition, many flights were cancelled around the globe due to the Omicron variant.
This was primarily due to travellers cancelling their plans because of the variant. However, if you think that your traveller insurance policy will cover the cancellation costs, then before you make the booking ensure that you go through the policy document carefully.
This article will talk about everything you need to know about travel insurance policy claim cancellation due to Omicron.
Can You Claim Compensation if Your Trip Gets Cancelled?
Yes, travel insurance policies offer coverage for trip cancellations. However, the benefits can be claimed only if the trip has been cancelled for reasons listed under the ‘Covered list of reasons’ specified in the offer document. Therefore, it is essential to know the specifics about the travel insurance and flight cancellation clause mentioned in the policy.
While every insurer can have a different list, cancellation of a trip due to personal fear or discomfort is usually not an acceptable reason to cancel travel insurance. Some of the reasons where trip cancellations are reimbursed are:
- Sickness or injury to the policyholder or someone in the immediate family
- Death of an immediate family member
- Any damage to the residence of the policyholder
- Natural disaster
- Terrorist attack
- Loss of employment
- The theft of the travel ticket or ID document
- Denial of visa, etc.
The policy document also mentions circumstances under which cancellation damages won’t be covered under the policy. These include:
- Cancellation is made based on the convenience of the policyholder
- Changes made by the tour company in the travel arrangements
- Cancellation due to the fear around COVID-19
- Any other reason not specified in the policy document
Things to Keep in Mind
While most policyholders were unhappy with the decision of insurance companies to reject the claim for cancellation made by them, they were probably unaware of the reasons under which their claim would be denied.
Whether you are looking at leisure or business travel insurance, if you want to claim damages for cancellations, then make sure that you go through the policy document carefully. As you can see in the lists above, cancelling a trip due to the fear around COVID-19 or based on the policyholder’s convenience can result in the rejection of the claim.
In fact, even if you cancel the trip for a valid personal reason, as listed above, the insurer might not cover all costs. For example, some insurers offer damages for airline ticket cancellations but not for hotel reservations. So you also need to keep in mind the type of policy you have to ascertain the extent of the coverage.
Further, in situations like the spread of the Omicron variant, if the airline had offered compensation for the cancellation, then the insurance company would not pay again for it.
Summing Up
Claim rejection is never a good experience for a policyholder. In fact, insurance companies don’t prefer rejecting claims either as it gives them a bad name. Therefore, they specify the reasons under which the claim will be accepted and those under which it will be denied in the policy document.
Policyholders must ensure that they go through these details before buying the policy. If they are not satisfied with the clauses, then they can look for options and compare travel insurance policies to find the one that best suits their requirements.
Remember, travel insurance is essential to protect yourself against various reasons that can burn a hole in your pocket while travelling. However, it is important to ensure that you go through the policy document carefully to understand the scope and extent of cover offered by it. Insurance companies are mandated to specify all reasons for rejection and acceptance in the policy document.
Hence, make sure that all the terms needed by you are present there to avoid rejection of the claim in the future. Assess your needs and look for a travel medical insurance policy that gives you peace of mind while you are exploring the world. Good Luck!
