Trip cancellation and curtailment coverage in travel insurance

Trip cancellation and curtailment coverage in travel insurance

Travelling is full of surprises, and not all of them are pleasant. That's where travel insurance comes in handy. It's like a safety blanket for your trips, especially when things are unplanned. Among the various aspects of travel insurance, one often misunderstood area is trip cancellation and curtailment coverage. Misconceptions around this coverage lead to miscommunication when travellers want to make a claim, which can be naturally frustrating. 

In this blog, we will talk about this coverage,  breaking it down so you can understand it better and feel more confident about your travel insurance choices.

Please note any claim eligibility is subject to the terms and conditions of the travel insurance product you are purchasing. The reasons stated in this article are indicative and not binding. It is highly recommended to read our terms and conditions to see the exclusions, limits and conditions of our products. You can see all of the steps regarding making claims in the Allianz Travel Terms & Conditions.

Let's unravel the concept of Trip Cancellation and Curtailment Coverage. Think of it as a protective shield for your travel plans. This coverage steps in when you must cancel your trip before it begins or cut it short due to specific circumstances. These unexpected events can range from medical emergencies that aren’t the result of a pre-existing condition to any other reason covered in the policy, throwing a wrench into your well-laid travel plans.

Imagine you've been looking forward to that dream vacation or a crucial business trip for months. Then, you or a family member falls seriously ill out of nowhere. In these challenging moments, Trip Cancellation and Curtailment Coverage act as a financial safety net, helping you recover non-refundable expenses and navigate the complexities of rescheduling or cancelling travel arrangements.

Understanding the scope of trip cancellation and curtailment coverage is crucial for travellers seeking comprehensive protection against potential trip disruptions. Let's delve into the circumstances this coverage typically includes:

If you find yourself needing to cancel your journey before it begins due to the following events, you can rely on this coverage for reimbursement of non-refundable trip costs:

  • Death, serious injury, or serious illness:  This includes situations where you, someone you intended to stay with, a travelling companion, or a close relative or business associate experience the unfortunate events of death, serious injury, or serious illness. This does not include pre-existing conditions. 
  • Police involvement after home incidents: If the police require you or a travelling companion following a burglary, damage caused by a serious fire, storm, flood, explosion, subsidence, vandalism, fallen trees, or impact by aircraft or vehicle at your home or their home or usual place of business in your home country, you can cancel your journey and seek coverage.

Sometimes, unforeseen events occur after your journey has begun, necessitating an early return home. Allianz's coverage extends to the following circumstances:

  • Events mentioned in the cancellation: If any events mentioned under the cancellation section mentioned above happen during your trip, compelling you to conclude it prematurely, you can count on this coverage for support.
  • Injury or illness requiring hospitalisation: If you or a travelling companion becomes injured or ill and must remain in the hospital for the remainder of your journey, this coverage ensures you're covered for the incurred costs. Please note that this excludes preexisting conditions. This does not include pre-existing conditions

While Trip Cancellation and Curtailment Coverage is a helpful safety net, there are times when it won't come to your rescue. Let's break down these situations:

Extra costs: 

Sometimes, you might have to chip in a bit. In the event of a trip cancellation or curtailment claim, there could be an excess amount you need to cover yourself, as mentioned in your summary of cover.

Health matters:

If you have health issues, or your policy explicitly excludes certain medical conditions, it could affect your trip cancellation or curtailment claim eligibility.

Unusual payment methods: 

If you've paid for your travel expenses using frequent flyer points, loyalty card points, or vouchers, the coverage might not pay more than those expenses would typically cost.

Specific situations: 

Trip Cancellation and Curtailment Coverage may not kick in for:

        Passport or visa problems: If you don't have the right passport or visa for your trip.

        Carrier hiccups: If the airline or transport provider decides not to let you board for any reason.

        Legal limitations: When the laws of a country or the folks in charge of enforcing those laws put the brakes on your travel.

        Provider troubles: If the company running your transport or accommodation goes bankrupt.

        Their fault, not yours: Anything that's the fault of your travel provider, conference organiser, or anyone acting on your behalf.

        Car troubles: If your vehicle gets stolen or breaks down.

        Change of heart: When you decide you don't want to travel or aren't having a good time, it's not for a serious reason.

        Civil unrest: Events like riots, strikes, or civil disturbances.

        Air travel exclusion: If you're on a private aircraft, your coverage may not apply.

        Intentional actions: If you intentionally mess up your travel plans, like doing something reckless or illegal (unless it was to save someone's life).

        Pets and animals: The sad passing of a pet or animal won't be covered.

        Transport or vehicle withdrawal: If your booked transport, like a plane, train, or boat, gets taken out of service due to a government or authority order in any country.

Late notice:

If you don't tell your travel provider, their agents, or anyone helping you out as soon as you know you have to cancel, you might end up with extra charges that the coverage won't handle.

Money and jobs:

Financial troubles or unemployment typically won't be covered unless you find out about losing your job due to redundancy after you bought your policy or travel tickets (whichever came later).

When securing comprehensive travel insurance coverage that safeguards your travel plans, choosing an insurer you can trust that comprehends the nuances of your travel needs is essential. Allianz Travel is a reliable choice if you're looking for travel insurance that includes the invaluable Trip Cancellation/Curtailment Benefit.

Our travel insurance packages, which include the trip cancellation/curtailment benefit, are the following: 

Annual multi-trip insurance 

Allianz Travel created this travel insurance product for frequent flyers as it is a convenient and more cost-effective way to travel any time of the year. Our annual multi-trip product covers all trips below 90 days within a year. The coverage includes the following: 

  • Emergency Medical Expenses 
  • Dental Expenses 
  • Loss of Travel Documents 
  • Hospital funds 
  • Personal accident, 
  • Missed Departure
  • Delayed Departure
  • Flight Overbooking

Single-trip insurance 

Our single-trip insurance packages are tailored for individuals who take one annual trip any time of the year. These packages come with a range of benefits and offer extensive worldwide coverage. The coverage includes:

  • Emergency Medical Expenses 
  • Dental Expenses 
  • Loss of Travel Documents 
  • Hospital funds 
  • Personal accident 
  • Missed Departure
  • Delayed Departure
  • Flight Overbooking
Get covered by Allianz Travel and Assistance before you embark on your next adventure. Allianz Travel has been around for over 30 years, so we know what travel insurance you'll need. When travelling internationally, it is essential to have insurance that covers medical emergencies, the loss or theft of travel documents and baggage, and other mishaps. Trust us to provide you with exactly that and more.