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Difference between Trip Cancellation and Cancel for any Reason Coverage

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Published on February 21, 2022. EST READ TIME: 3 minutes

Life is unpredictable, and travel can be even more so. When it refers to travel insurance, we understand the significance of being prepared for the unexpected. Fortunately for you and all of the travellers out there, there are two options for covering a cancelled trip. Let's look at the distinctions between them and the many forms of travel insurance available.

Standard Trip Cancellation Coverage

Every comprehensive policy includes fundamental trip cancellation cover. This will increase coverage for travel cancellations due to particular unanticipated, defined causes.

Typically, travel insurance policies, would cover things like:

● Unexpected death, sickness, or damage to you or a travelling partner that renders you ineligible to travel, as determined by a certified physician

● A non-travelling member of the family's hospitalization or unfortunate death

● Issues with the climate or common carriers (depends on the policy)

● Natural calamities that were not anticipated at home or the destination

● A legal responsibility, like being called to jury service or testifying in court.

The specifics differ depending on the supplier and the package. If you must cancel, you will be compensated in full for the planned, non-refundable trip fee for which you have insurance and can show evidence. All of this insurance coverage applies only if your trip is dropped due to an unforeseeable covered reason.

Cancel for Any Reason Coverage

CFAR is a travel insurance feature that is provided on specific travel insurance policies. This advantage is usually an extra payment on the package, but it arrives with expanded protection that you could find quite useful. With CFAR, it makes no difference why you need to cancel your insured trip - you simply can. When travelling to a section of the globe where there is civil or political turmoil, it is common for tourists to obtain CFAR protection. This permits the traveller to cancel if they are unsure about departing on the journey due to second thoughts, security concerns, or simply a bad omen. You can drop your travel for any reason given you have more than 48 hours from the scheduled departure date.

Which is best for you?

Safety first, right? Well, that’s what you should always do when you travel. The more safety precautions you take and the more research you do can save you a lot of grief in the future. If you need to cancel your trip due to unforeseen circumstances or emergencies, you need to plan about it in advance.

Every primary travel insurance plan includes trip cancellation coverage. Nevertheless, if you are travelling to a region of the world where there has been civil or political unrest, you should obtain CFAR coverage. This allows you to cancel your trips if you are uncertain about embarking on the adventure due to last-minute second thoughts, security concerns, or simply a bad omen. As a result, the decision is entirely up to you and your destination.

However, with so many travel insurance plans available in the market, it is not possible to understand the intricacies of each plan. It’s difficult to choose a travel insurance plan in a scenario like this, but we are here to help you make an informed decision. Utilize our guide to help you make an informed decision about choosing the right travel insurance plan for your next vacation.

Types of Travel Insurance

There’s an ongoing trend in the travel insurance industry, and it is known as COVID-19 coverage. The emergence of the omicron-variant of COVID-19 has started giving travellers nightmares — and rightly so! Therefore, it will be wise to buy travel insurance now than ever, before you plan a trip in 2022 to avoid unforeseen circumstances. Let’s talk about the different types of travel insurance available. The more informed you are, the better your decision will be in purchasing coverage.

1. Individual Travel Insurance Plans:

Are you a travel enthusiast or maybe planning to spend a considerable amount of money outbound? Then, travel insurance comes to your rescue. With travel insurance, you will never miss a beat. From the best-in-class coverage to the exciting discounts and cashback offers are indeed the most gratifying things about travel insurance.

a. Individual Single Trip International Insurance:

Individual Single Trip International Insurance is designed for people who just want to visit one foreign country.

b. Individual Multi-Trip International Insurance:

This insurance is essential for those who are constantly on the move and travel to numerous countries or return to the same nation several times a year.

2. Family Travel Insurance Plans:

Family holidays are all about forgetting about your troubles and creating experiences that will last a lifetime! We know that on your trip to a beautiful island, you want to make memories of spending quality time with the people you love most. And we want to help alleviate some of your concerns about emergency issues that might arise on the trip so you can focus on enjoying the holiday.

a. Family Single Trip International Insurance:

Family Single Trip International Insurance is intended for persons who are just planning a single visit to a foreign country.

b. Family Multi-Trip International Insurance:

This insurance is critical for a family that is continuously on the road and travels to other countries or returns to the same country multiple times a year.

3. Frequent Flyers Travel Insurance Plans:

If you keep travelling across countries and find it challenging to deal with applicable insurance policies, then you should go for annual multi-trip cover. With this cover, you can travel across the globe every year as many times you need to, with only one insurance policy. It’s not a new way to seek travel insurance, but coming up with a comprehensive solution for all travellers that gives them peace of mind is what makes it worth looking forward to.

4. Student Travel Insurance Plans:

If you are travelling abroad for the purpose of education, there could be a mandatory requirement of obtaining a travel insurance plan for a visa. Even otherwise, it is always advisable to opt for one as medical expenses can be really high especially in the western world.

Conclusion

Travelling is a fun and exciting experience, but without travel insurance, an accident or illness could make your vacation a nightmare. Make sure you're ready for any eventuality with travel insurance from HDFC ERGO. Visit our website to get more details and instant quotations on travel insurance.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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