Travel Insurance Trip Cancellation: Things You Need to Know

As travel season approaches, it's time to plan your next adventure. Travel insurance is essential — whether you're heading out for a family trip, a romantic getaway, or a solo exploration. One key consideration is understanding the coverage provided by travel insurance at every stage, especially for trip cancellation, delay, or early termination. FWD highlights everything you need to know about travel insurance, allowing you to handle any situation by adjusting your travel plans with flexibilities.

What Is Trip Cancellation in Travel Insurances?

Trip cancellation is a common feature in travel insurance, offering protection when unexpected events cause your trip to be canceled, delayed, or cut short.

Travel insurance typically reimburses prepaid expenses, such as flight tickets. Since flight tickets and accommodation expenses are often non-refundable, it could be very costly if the trip gets canceled, especially when it has been long awaited, making you frustrated and disappointed. With trip cancellation coverage, you can recover some of the costs, minimizing the financial impact of an interrupted or canceled trip.

Below are 3 common compensation items for trip cancellation:

1. Trip Cancellation

This is the most common coverage in travel insurance: if you need to cancel your trip before departure due to unexpected events, such as serious injury or the passing of a family member, travel insurance usually covers the related costs.

2. Journey Change

If you need to change your travel dates, travel insurance may reimburse part of the cost. Please check with the policy to know how much you'll have to bear yourself before buying the travel insurance.

3. Returning Early

Generally, travel insurance trip cancellation policies cover non-refundable prepaid expenses, but the exact coverage depends on your policy. Some travel insurance policies may only cover non-refundable travel and accommodation costs; others, such as FWD's MyTravel Insurance¹, offers a more comprehensive coverage, including tour fees or rental car bookings that can't be refunded.

How To Claim for Travel Insurance

Vacations don't always go as planned. When you need to cancel, delay, or return early from a trip, you can submit a claim to your travel insurance provider. To ensure a faster claim process, it is recommended that you prepare the following supporting documents, and the claim amount will also have to be reasonable:

• Any receipts related to the journey, e.g. tour booking receipt, flight confirmation letter, or boarding pass.
• Original invoices or receipts that list the expenses amount.
• Confirmation letters from travel agencies or airlines that clearly state that prepaid travel costs are non-refundable.
• Medical reports or certifications explaining why a trip can't proceed due to serious illness or injury.
• Death certificate for insured person or family member (if applicable).

What Are the Valid Reasons for Trip Cancellation?

Travel insurance usually only covers certain recognized reasons for trip cancellation, delay, and prematurely ending your journey, these reasons commonly include:

Medical Emergencies

You, a travel partner, or a family member is seriously injured or falls seriously ill and cannot travel.

Home Damage

Your home, or your travel companion's home is severely damaged by fire or natural disaster, needing you to cancel the trip or return early.

Flight Cancellations

The flight is canceled due to extreme weather at your destination, making your trip impossible to commence.

Legal Obligations

You are called to serve on a jury or as a court witness during your planned travel dates.

For example, if you are diagnosed with a serious illness, or a fire broke out at your house during the trip, you may be eligible for travel insurance trip cancellation or journey curtailment claims. Unexpected circumstances may also arise in daily life, such as sudden work arrangements that force you to change your travel plans, but most of these are not included in standard travel insurance coverage. In such cases, you may not be eligible for the protections.

Is FWD Travel Insurance Good?

If you're looking for a comprehensive travel insurance with broad coverage, FWD could be your best choice. FWD MyTravel Insurance's¹ Superior plan includes "trip insurance cancel for any reason^{2,^}", offering broader protection. The "cancel for any reason" clause is primarily composed of two parts:

• Trip cancellation³ for any reason²
• Change of travel date^3,4 for any reason²

The "cancel for any reason^{2,^}" clause covers almost any reason² for trip cancellation³, delay^3,4, or early return, even those generally excluded from standard travel insurance trip cancellation policies:

• Pet falling ill and needing close care
• Unforeseen work commitments
• Problems obtaining travel visas on time
• Missing flights due to traffic jams
• Event cancellations at your destination (like concerts)
• Other reasons not typically covered by regular travel insurance products

^{^}Subject to the exclusions

Special Notes

FWD's extensive "cancel for any reason^{2,^}" cover is only available if you purchase the superior plan within seven days after your first travel payment. With this coverage, if your trip is cancelled due to work obligations, FWD will let you claim up to 50% of the insured prepaid travel expenses, according to the highest claim limit.

Exclusions for "Cancel for Any Reason^{2,^}"

Some exclusions still apply even under the comprehensive FWD MyTravel Insurance cancel for any reason^{2,^} policy, such as:

• War, civil war, invasion, insurrection, revolution, use of military power or usurpation of government or military power
• Any prohibition or regulations by any government
• Any pre-existing condition, congenital and heredity condition
• Engaging in a professional capacity in any sport where an insured person would or could earn income or remuneration from engaging in such sport as a source of income
• Any loss which has connection with the effects of alcohol or drugs other than those prescribed by a qualified medical practitioner

Exploring the world with more confidence

While travel is exciting, unpredictable events can ruin your plans. FWD MyTravel Insurance Superior Plan's "cancel for any reason^{2,^}" allows you to travel with confidence, knowing you're covered across virtually every situation. Whether your plans change unexpectedly or you simply want more flexibility, a comprehensive travel insurance cancellation cover ensures security at every stage of your journey. Find out more about FWD MyTravel Insurance and trip cancellation options for the ultimate peace of mind.

^{^}Subject to the exclusion