Annoyed by flight delays or planning a trip abroad? Go for travel insurance

Vistara has announced it will cancel 25-30 flights daily as the airline tries to minimise the impact of crew shortages. The airline, which usually operates about 350 flights a day, had to cancel over 100 flights last week because of a lack of available pilots. This situation is not unique. Every winter and monsoon season, flights are often delayed, diverted, or cancelled due to bad weather. Problems related to technology, operations, airports, and air traffic control can also cause cancellations and delays. Data from the DGCA shows that from January to November 2023, approximately 1.88 million passengers experienced flight delays, and 249,000 were left stranded by cancellations.

How can travellers deal with such situations?

Opt for travel insurance.

Travel insurance is crucial in offering financial protection and assistance to travellers affected by flight cancellations and delays. Amrish Dubey, Vice President of Travel Insurance at Tata AIG, says, "Travel insurance is a comprehensive solution that safeguards the traveller against a range of inconveniences and financial losses from various contingencies including flight cancellation and delay." It covers expenses for food, accommodation, and provides a fixed lump sum payout in certain situations. Travel insurance also assists in making alternative travel arrangements.

Coverage offered by travel insurance

Travel insurance can be a lifesaver in various unexpected situations. Brijesh Unnithan from ACKO outlines key scenarios where travel insurance plays a crucial role:

Flight cancellation by airline: Airlines, including Vistara, Air India, and Indigo, may cancel flights due to uncontrollable circumstances like technical issues or weather conditions. In these cases, travel insurance might offer a specific sum insured.

Trip interruption: Should a trip be cut short or interrupted owing to a flight cancellation, the policy may cover additional costs such as accommodation or rescheduling fees.

Trip delay: Delays can lead to extra expenses for meals and accommodation. Here, travel insurance offers financial relief for these unplanned costs.

Trip cancellation: Unforeseen events such as illness or a family death that prevent travel could see non-refundable expenses reimbursed by travel insurance.

Unnithan adds, "The process may differ depending on the insurance company. For instance, ACKO requires customers to upload necessary documents via the app. The claims team then reviews these documents and decides on the claim."

Amrish Dubey emphasises the importance of understanding one's policy coverage. He advises travellers to promptly notify their insurer and submit a claim form along with supporting documents like tickets, boarding passes, and original bills for a smooth claim process.

Amrish Dubey lists out what top travel insurance widely offer:

Travel insurance includes medical and non-medical expenses.

The medical component covers:

hospitalisation

outpatient treatments,

and other health-related expenses.

Non-medical covers:

trip interruptions

baggage loss

trip delays

cancellations,

and passport loss, among others.

The specifics of the coverage depend on the chosen plan and policy.

Instances of compensation by insurers

Insurance companies, including ACKO, have compensated travellers for various incidents, such as:

Compensation for flight delays: Travellers facing delays beyond the policy-specified hours have been compensated, regardless of the incurred expenses.

Coverage for missed connections: Additional costs from missing a connecting flight due to an original flight's delay are also covered.

Steps customers must take after a flight disruption

Amrish advises immediate notification of the insurer in the event of a flight delay or cancellation.

"A customer should notify the insurer immediately and  should preserve all the original bills (wherever required)  and follow the process as advised by the insurance company. The entire claim process is given in the policy document which the customer should refer to," says Amrish.

Quick tips for policyholders

Document the incident: Keep all relevant documentation, including your flight itinerary and boarding pass.

Notify the insurance provider: Inform your insurer as soon as possible after a disruption.

Follow insurer instructions: Adhere strictly to the guidelines provided by your insurance provider for the claims process.

Submit necessary documentation: Provide all required documents for the claim, such as proof of flight delay or cancellation.

Keep records: Maintain thorough records of all interactions with both the airline and your insurance provider throughout the claims process.

Choosing the right plan and the claims process

Selecting the right travel insurance plan involves considering several factors, including the sum insured, destination, the traveller's age, and potential risks. Amrish Dubey advises checking the insurance requirements of the destination country, as some countries mandate travel insurance for visa issuance.

Claims can be processed on a cashless basis or through reimbursement. It is crucial to choose a policy that offers extensive cashless services internationally. Contact information for claims support is typically provided on the insurance policy or certificate.

Key benefits of travel insurance

Travel insurance plans provide numerous benefits, such as compensation for flight and trip delays, expenses related to trip cancellation, medical treatments and hospitalisation, and hotel accommodations for medical emergencies. Policies can be customised according to the destination, with varying premiums. Additional coverage includes personal liability, accidental death, travel delays, legal expenses, dental treatments, repatriation, and emergency reunions. Most insurers offer round-the-clock customer support to assist with document loss, accidents, and other emergencies.