As IndiGo’s operational issue causes numerous cancellations and protracted delays throughout the network, travelers need to consider what safeguards travel insurance truly provides in these circumstances.
Insurance companies and middlemen claim that coverage can assist when disruptions leave travelers stranded and need last-minute adjustments, but only under certain restrictions.
What does current domestic travel insurance normally cover?
According to Square Insurance CEO Akash Parwal, operational problems are largely responsible for flight interruptions in India.
In India, operational problems like technological malfunctions, staff shortages, or airline strikes account for between 30 and 35 percent of aircraft interruptions annually. The recent IndiGo cancellations, for example, demonstrate how rapidly travelers might become stuck without assistance, he added.
The majority of domestic travel insurance policies, according to Parwal, do cover lengthy delays or cancellations brought on by airline-initiated disruptions.
However, this protection only becomes effective under certain situations.
Every insurance includes restrictions, such as exclusions if the airline has already provided an alternative arrangement or a minimum wait of three to six hours before coverage begins. In order to comprehend these subtleties and make sure they are sufficiently covered, travelers are recommended to thoroughly check the terms of their insurance, he continued.
Large-scale operational interruption is rarely clear-cut, according to industry platforms.
For example, CoverSure stated that although associated losses are often covered, the cancellation itself may not necessarily be when the interruption results from an airline’s internal problems.
Most travel insurance policies do not cover the cancellation itself when an airline’s internal or operational problems cause an interruption, as was the case with IndiGo. According to Saurabh Vijayvergia, founder and CEO of CoverSure, “they do cover the secondary affects, such luggage delays, missed connections, and trip delays.”
Common exclusions that travelers need to be aware of
Policies often outline what is not eligible for reimbursement.
Insurance companies do not cover “delays less than the minimum wait time, weather or air-traffic concerns, and incidents outside airline control,” according to Vijayvergia. Accepting coupons or making voluntary flight changes might also undermine a claim.
Insurance companies “prevent duplicate compensation, therefore if the airline has previously paid the damage, the insurance may not pay further,” the statement continued.
He continued by saying that each component has a distinct function, such as demonstrating the interruption, proving costs, and assisting the insurance in verifying the claim.
Clear records “ease the claim process and eliminate needless back-and-forth with the insurance,” according to Vijayvergia.
“Passengers should retain a copy of their ticket, their boarding card, and all written updates from the airline. A certificate of cancellation or postponement is frequently necessary. Meals, hotel stays, transportation, and rebooking receipts all aid in determining real loss. In actuality, claims may be made using an SMS or email that contained information on the cancellation or delay, he stated.
Meet Kapadia, Policybazaar.com’s Head of Travel Insurance, who explained how payouts operate at such times of significant disruption.
The current increase in complaints about flight cancellations, particularly with major airlines like IndiGo, demonstrates how unpredictable air travel can be for travelers. Travel insurance provides set payouts in these situations if the traveler is stuck for a predetermined amount of time (6โ12 hours). Additionally, they cover the cost of meals, necessities, and other emergency expenditures if the trip is canceled and the traveler needs to book a new ticket or make lodging arrangements, according to Kapadia.
Insurers also provide round-the-clock support, he continued, which enables travelers to “handle interruption with less stress in new areas.”
Why credit cards could already provide covert security
There are several types of travel insurance besides standalone policies. It is possible that many travelers already have coverage on their credit cards, often without even realizing it.
“Most credit cards already include built-in travel insurance, but many travelers feel a separate travel policy is the sole safety net,” according to CoverSure.
“These hidden benefits go underused simply because individuals do not realize they exist, yet they frequently cover delays, missing connections, luggage concerns, and unintentional emergencies,” the statement stated.
Benefits on cards can offer prompt assistance during interruptions and need “no further cost or documentation,” according to the site. It stated that a stand-alone strategy only comes into play when more security is required.